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SAIL Q4 profit up 72 p.c. |
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Tuesday, 22 May 2007 |
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Aided by a strong demand for steel, higher value-added production and improved techno-economic parameters, the state-owned Steel Authority of India Ltd. (SAIL) posted a record turnover of Rs. 11,534 crore during the fourth quarter of 2006-07 with a 72 per cent increase in net profit at Rs. 1,902 crore as compared to Rs. 1,103 crore earned during the same quarter in the previous year.
With this, the steel major has achieved an all-time high annual turnover of Rs. 39,189 crore along with the highest-ever profit before tax amounting to Rs. 9,423 crore during the fiscal. Its audited financial results for 2006-07, taken on record by the company'sboard here on Monday, showed a 55 per cent increase in net profit at Rs. 6,202 crore. Alongside, SAIL has achieved the distinction of becoming the first company in the metals sector to cross a market capitalisation of Rs. 50,000 crore. In keeping with the company's record performance, the SAIL board has recommended a total dividend of 31 per cent on the paid-up equity amounting to over Rs. 1,280 crore. This includes the 16 per cent interim dividend that was paid to its shareholders in March this year.
At a news conference here, SAIL Chairman S.K. Roongta said the board cleared modernisation and expansion programme entailing a total cost of Rs. 23,500 crore during the fiscal year. "SAIL is fully geared up to implement its modernisation and expansion plant to meet the growing demand for steel in the country", he said.
Mr. Roongta noted that the total value of projects already taken up for ordering and implementation has gone up to Rs. 38,000 crore. Besides, the company also decided to expand the generating capacity of its power plants at Bokaro by 500 MW in a joint venture with Damodar Valley Corporation.
During the year, SAIL achieved a new annual production peak at 12.6 million tonnes while its total sales also grew to 11.9 million tonnes.
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