SAIL registers huge profit

Lower coal prices and ‘exceptional gains’ were the two key factors

GN Bureau | November 12, 2013



 State owned Steel Authority of India (SAIL) has earned a net profit of Rs 1,180 crore in the September quarter owing to the lower price of coal and ‘exceptional gains’.

According to a news report in The Business Line, SAIL chairman CS Verma has said that the price of imported coal, which was $220 per tonne during the second quarter, has come down to $135 per tonne. So, there were savings of Rs 885 crore on this account.

At the same time, SAIL said it got an ‘exceptional’ amount of Rs 1,056 crore from Vale SA, the Brazil-based metals and mining company, towards damages for non-supply of the full quantity of contracted hard-coking coal.

However, two key factors, realisation from sales and provisioning for a wage hike, affected the company’s profitability. SAIL made a provision of Rs 1,150 crore on account of wage settlement, while sales realisation was down by Rs 720 crore.

“Sales realisation during the second quarter of the last financial year was Rs 37,210 a tonne. During this quarter, this came down to Rs 34,230 a tonne – a dip of 6.5 per cent,” Verma was quoted.
 

Comments

 

Other News

Cabinet approves viability gap funding to develop grid-scale energy storage systems

The Union Cabinet, chaired by PM Narendra Modi, has approved the Viability Gap Funding (VGF) Scheme for Development of Grid-Scale Energy Storage Systems, with a total financial support of Rs.14,500 crore for the period FY 2026-27 to FY 2030-31. The scheme aims to support the development o

Cabinet creates a pathway to absorb Agniveers in Defence Forces

An objective assessment in terms of organisational requirements and operational efficiency has brought out the outstanding performance of Agniveers in terms of skills, motivation levels, physical fitness and technological prowess. As envisaged earlier, based on merit, 25% of Agniveers will be offered reg

Modi inaugurates, lays foundation stone of Pune Metro projects

Prime minister Narendra Modi inaugurated and laid the foundation stone for Pune Metro projects worth around ₹21,800 crore on Tuesday through video conferencing. Addressing the gathering on the occasion, the PM extended warm Diwali greetings to the people of Pune and Maharashtra and remarked that f

Wired for good: Building sustainable cities with AI

The First Industrial Revolution in the 18th-19th centuries ushered in a paradigm shift in how cities were imagined. Fueled by railways, factories and grids, and obsessed with speed and scale, it was an ode to efficiency, which spurred unprecedented economic growth. Now, as the Fourth Industrial Revolutio

How social media is reshaping elections

Since Brazil’s return to direct presidential elections in 1985, no candidate who finished second in the first round of polling had ever won the presidency. Luiz Inácio Lula da Silva, now 81, has just done it. What explains the comeback, and what changed in Brazilian politics to make it possi

Cabinet approves Dearness Allowance, Dearness Relief

The union cabinet chaired by prime minister Narendra Modi on Wednesday approved the release of an additional instalment of Dearness Allowance (DA) to central government employees and Dearness Relief (DR) to pensioners with effect from 01.07.2026 representing an increase of 3% over the existing rates of 6

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter