Public sector steel major SAIL on Monday posted a 43 per cent decline in net profit for the quarter ended December on the back of increased raw material prices and rupee depreciation. The Maharatna public sector undertaking registered a net profit of Rs 632 crore for the three months period as compared to Rs 1,107 crore during the same period last year.
“The dip in profit is owing to the impact of Rs 578 crore on account of increase in coking coal prices and Rs 499 crore on account of foreign exchange variation,” chairman C S Verma said.
Global metallurgical coal prices jumped to an average of $280 per tonne during the third quarter as compared to average $205 per tonne during the same period last year.
The steel major's total income dipped marginally during the period. Its total earnings between September and December 2011 stood at Rs 11,112 crore, down four per cent as compared to Rs 11,583 crore registered during the third quarter year.
Global metallurgical coal prices jumped to an average of $ 280 per tonne during the third quarter as compared to average $ 205 per tonne during the same period last year.
The steel major's total income dipped marginally during the period. Its total earnings between September and December 2011 stood at Rs 11,112 crore, down four per cent as compared to Rs 11,583 crore registered during the third quarter year.
The company produced 2.6 million tonne (MT) steel during the third quarter ended December against 3.2 MT produced during the same period last year.
More From This Section
For the nine months ended December, SAIL posted a 42 per cent decline in profit after tax (PAT) at Rs 1,965 crore. Turnover for the nine months period, however, rose five per cent at Rs 35,563 crore. The company’s steel production also came down marginally from 9.4 mt to 9.1 mt between April and December this year.
SAIL Q3 net down 43 per cent on higher raw material costs, Rupee depreciation