STEEL AUTHORITY OF INDIA = Q3 RESULTS = Q/E DEC 2010 = SALES UP; COSTS UP; PROFTS DOWN

STEEL AUTHORITY OF INDIA LTD

RESULTS FOR Q/E DECEMBER,2010

SAIL has declared results for 3^rd Qtr ending December,2010.

Net Sales     is Rs.11143 Cr – up by 5.1% from 2^nd qtr, up by 23.41% from 1^st Qtr, down by 6.79% from 4^th Qtr of FY10, and up by 14.91% from Q3 of FY10.

Profit from Operations is Rs.1416 Cr – up by 6.82% from 2^nd qtr; down by 5.09% from 1^st Qtr; down by 48.66% from Q4 of FY10; and down by 36.75% from Q3 of FY10.

Net Profit : is Rs.1107 Cr -  down by 1.6% from Q2; down by 5.88% from Q1; down by 46.88% from Q4 FY10; and down by 33.9% from Q3 FY10.

Part of the reason is higher raw material cost, which has increased considerably compared to all preceding Qtrs. Employee cost also has increased considerably. Thus, Profit from operations and Net profit are both down considerably.

Basic EPS     is Rs.2.68 – compared to Rs.2.64 in Q2; Rs.2.85 in Q1;Rs.5.05 in Q4 FY10; Rs.4.06 in Q3 FY10 – on a face Value of Rs.10.

The company says :

On the one hand is slowly firming up demand leading to record sales, while on the other a sharp hike in cost of inputs (..particularly imported metallurgical coal,) has exerted substantial pressure on margins. The SAIL Board has approved interim dividend for its shareholders at 12%..

the company’s debt-equity ratio came down from 0.50:1 to 0.39:1 as a result of better debt servicing…

With momentum of implementation of SAIL’s modernization & expansion plan continuing as per schedule, the company incurred capital expenditure of Rs. 2,688 crore during Q3, taking total outgo on this account so far to Rs. 8,002 crore in FY ’11…

Steel Authority of India Limited (the "Company") is proposing, subject to market conditions and other considerations, to make a further public offering of its equity shares in the near future…

RESULTS IN FIGURES :

S A I L	31-Dec-10	30-Sep-10	30-Jun-10	31-Mar-10	31-Dec-09
Net Sales	1114320	1060288	902937	1195520	969714
Dif%1	1114320	5.1	23.41	-6.79	14.91
Other Operating Income	16964	20329	10395	27456	18154
Increase/decrease in SIT / WIP	3626	28652	-167885	88441	-21200
Raw Materials	673073	636368	615386	584406	517747
Purchase of Traded Goods	50	115	133	34	163
Employees Cost	186347	170037	201171	163807	157124
Depreciation	37933	36882	35051	33844	33904
Other Expenditure	88619	75967	80241	76582	76190
Total Expenditure	989648	948021	764097	947114	763928
Profit from Operations	141636	132596	149235	275862	223940
Dif %2	141636	6.82	-5.09	-48.66	-36.75
Other Income	27108	37538	38620	44293	40679
Interest	5924	10904	12964	13471	11011
Profit before tax	162820	159230	174891	306684	253608
Tax expense	52073	50229	57226	98194	86053
Net Profit	110747	109001	117665	208490	167555
Dif %3	110747	1.6	-5.88	-46.88	-33.9
Dividend (%)	12	-	-	17	16
Face Value.Rs	10	10	10	10	10
Paid Up Equity	413040	413040	413040	413040	413040
Basic EPS	2.68	2.64	2.85	5.05	4.06
Public holding (%)	14.16	14.16	14.16	14.16	14.16

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