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.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
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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