Steel Authority of India (SAIL) in Q1FY09 registered a jump of 37.2% year-on-year (y-o-y) to Rs110.3 billion, lead by higher realizations and a rise in saleable steel volumes.
The strong pricing scenario coupled with increased sales of value added products (VAP) pushed net realizations up by 30.9% for the quarter. The jump was also due to the price hikes announced by the company in Q4FY08 taking effect.
SAIL registered a y-o-y growth of 16.4% to Rs27.7 billion in operating profit. OPM in Q1FY09 was 25.1%, a drop of 450bps y-o-y on account of higher staff costs and an increase in raw material costs.
Net profit rose 20.3% y-o-y to Rs18.4 billion during the recently concluded quarter, up from Rs15.2 billion in the corresponding period last year. However, PAT growth was curtailed by an one time provisioning of last year’s employee costs of Rs8.6 billion.