SAIL’s turnover for January-March (Q4) of FY ’12 grew 13% over the corresponding period last year to INR 147850M (US$2.665M).
The robust performance in Q4 helped the Company achieve gross sales turnover of over INR 50000M ($901.4bn) during FY 2011-12, for the first time since the State owned company was established. This represents a growth of 7% over the previous year.
Operating costs, however, increased markedly resulting in SAIL’s FY ’12 profit before tax falling 28% y-o-y to INR 51510 ($928.6M) and after tax to INR 35430M ($638.7M). The effect of raw material price increases, amounting to over INR 40000M ($721.1M) mainly from imported coking coal from USA which averaged $ 288/t in FY ’12 compared with $213/t the previous year, was compounded by the volatility in dollar-rupee exchange rate which carried an adverse impact of around $16.2/t.
Under SAIL’s modernisation and expansion plan, projects completed during 2011-12 included installation of a new turbo blower and rebuilding of coke oven batteries 1 and 2 at Bokaro Steel Plant, rebuilding of battery No6 at Bhilai Steel Plant, installation of a new ladle furnace at the Alloy Steels Plant, and others. SAIL has planned for an outlay on mergers and expansions during the 12th Five Year Plan to March 2017 of INR 450000M ($8.11bn) of which INR 145000 ($2.61bn) is planned for the current financial year.
During 2012-13, several new major production units will become operational at SAIL’s IISCO Steel Plant at Burnpur, including a raw material handling system, sinter plant, coke oven battery No 11, a blast furnace, Ladle metallurgy station and casters, blowing station and wire rod mill, thus paving the way for full-fledged operations to start in this greenfield plant.