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SAIL: Net loss halves

May 28, 2001

Steel Authority of India (SAIL), the public sector steel major, has reported a lower net loss for the year ended 31st March 2001. Net loss has come down drastically from Rs 16,989 m in FY00 to Rs 7,287 m in the current year.

(Rs m) FY00 FY01 Change
Sales 144,495 145,726 0.9%
Other Income 8,657 2,869 -66.9%
Expenditure 140,925 126,928 -9.9%
Operating Profit (EBDIT) 3,570 18,798 426.5%
Operating Profit Margin (%) 2.5% 12.9%  
Interest 17,888 17,517 -2.1%
Depreciation 11,328 11,436 1.0%
Profit before Tax (16,989) (7,287) -57.1%
Tax - -  
Profit after Tax/(Loss) (16,989) (7,287) -57.1%
Net profit margin (%) -11.8% -5.0%  

This was primarily on account of a 9.9% reduction in operating expenditure to Rs 126 bn, which has improved operating margins to 12.9% in FY01. Expenditure has fallen due to lower power & fuel costs and increase in stock in trade to Rs 1039 m. A series of voluntary retirement scheme has also helped in this improved performance.

The company has transferred and assigned its Unit-II of the captive power plants at Durgapur and Rourkela on March 7, 2001 to its subsidiary SAIL Power Supply. Later, this subsidiary was transferred into a joint venture company with National Thermal Power Corporation for generation and sale of entire power to SAIL. The profit of Rs 2,868 m on such transfer has been included under other income. Excluding other income in FY00 as well as in FY01, the company's performance is even better with a 60% reduction in net loss.

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