New Delhi, July 29 (IANS) State-run steel producing giant Steel Authority of India Limited (SAIL) Thursday reported a 11.55 percent decline in net profit below street estimates at Rs.1,176.65 crore as against Rs.1,330.43 crore in the like period of 2009-10.
Profitability was affected by different factors, including sharp input cost escalations, lower volume of sales and sluggish market conditions, the company said in a statement.
The total income of the steel behemoth also declined 1.89 percent in the first quarter at Rs.9,519.52 crore as compared to Rs.9,703.51 crore in the corresponding period of 2009-10.
Meanwhile, the gross sales of the company increased by 1.83 percent at 9930.78 as against Rs. 9751.62 crore in the first quarter of 2009-10.
The income from other business activities of the company earned it Rs.12.04 crore, which is a 82.70 percent growth from Rs.6.59 crore in the corresponding period of 2009-10.
‘Greater availability of steel worldwide coupled with pressure on demand made the market conditions quite testing for steel companies in the first quarter. With signs of stability in prices and demand picking up in the country, we are optimistic about the ensuing quarters,’ said SAIL Chairman C.S. Verma.