Hit by costlier raw material and forex loss, state-run SAIL today reported 43% dip at Rs 632 crore in profit in the third quarter of this fiscal.
Steel Authority of India Ltd (SAIL) had posted a profit of Rs 1,107 crore in the October-December quarter of the last fiscal, it said in a communique to the Bombay Stock Exchange.
The total income of the company declined to Rs 10,729 crore against Rs 11,280 crore a year earlier, its raw material consumption grew to Rs 5,991 crore during the quarter against Rs 5,262 crore in the third quarter of last fiscal.
SAIL largely meets its iron ore requirement from captive sources, but it has to rely heavily on imported coking coal to fire the blast furnaces in the reporting quarter. Coking coal and iron ore are the two key raw materials for steel making.
Weaker rupee also negatively impacted the steel makers' bottom line to the tune of Rs 466 crore during the reporting quarter.
SAIL attributed the forex loss to "unusual and steep depreciation in the value of the rupee against US dollar and euro".
SAIL's scrips today provisionally closed at Rs 110.35 apiece, down 2.43% over the previous day's closing.