SAIL net dips 55%

BS 200 SCORECARD

Steel Authority of India Ltd's (SAIL) net profit for the third quarter of this financial year has fallen 54.7 per cent to Rs 685 crore due to decline in national and international steel prices and higher prices of inputs, mainly coking coal.

In the year-ago quarter, the company's net profit stood at Rs 1,514.24 crore.

Total income of the state-run company fell 18.3 per cent to Rs 6,443.39 crore during the October-December quarter from Rs 7,889.2 crore in the last corresponding quarter.

The board of directors also approved an interim dividend of 12.5 per cent for 2005-06.

"In view of the over capacity of steel in the international market with China becoming an exporter, there has been pressure on prices. The rise in the prices of coking coal alone put an additional burden of over Rs 1,000 crore during April-December 2005," said the company in a statement.

The company remains optimistic. "Now, there appears to be stability in steel prices. Moreover, with a high level of economic growth in the country, the consumption of the metal will continue to increase," said chairman V S Jain.

It is to be noted that Tata Steel, the private sector steel major, had reported a 15.35 per cent decline in net profit for the quarter to Rs 753.74 crore.