New Delhi: Steel Authority of India Ltd, the country’s largest steelmaker, said profit more than doubled in the third quarter, beating analyst estimates, because of an increase in prices and sales.
Profit rose to Rs1471 crore in the quarter ended 31 December, from Rs 656 crore, a year ago, the company said. Sales rose by a third to Rs 8352 crore.
Asian steel prices are recovering because of a slowdown in output in China, which supplies one-third of the world’s steel, and a construction boom in India, lifting SAIL’s sales.
Steel prices in India were 21 % higher in the quarter, helped by an average 9.1 % expansion in the economy in the first nine months of the fiscal. JSW Steel, India’s fourth-biggest producer, reported that profits have more than doubled, while Tata Steel, the second-biggest, may report a 48 % jump in profit on Tuesday.
SAIL shares are the best-performers this year on the 50-share S&P CNX Nifty index.
Essar Steel net up 30%
Essar Steel, India’s fourth- biggest steelmaker, reported a 30 % increase in third- quarter profit as it raised production and increased sales to energy companies and carmakers.
Net income rose to Rs 179 crore in the quarter from Rs 138 crore a year earlier, the company said. Revenue rose 47 % to Rs 2115 crore.
Jindal steel profit rises 51%
Jindal Steel & Power posted a net profit of Rs 189.90 crore for the quarter ended December 31, up 50.07 % cent as compared to Rs 126.54 crore a year ago.
Total income rose by 58.16 % at Rs 1012.43 crore for the third quarter, as against Rs 640.13 crore in the corresponding quarter in 2005, Jindal Steel & Power informed the BSE.
Jindal’s board of directors have also declared a 120 % interim dividend by paying Rs 6 per share of a face value of Rs 5 each on 3,07,92,268 equity shares, it added
Jindal Steel is also going to set up a 6 million tonne steel plant at Angul distric in Orissa and another 3 million tonne steel plant at Patratu in Jharkhand, after the directors approved the proposals .