OREANDA-NEWS. November 13, 2012. Maharatna Steel Authority of India Limited (SAIL) achieved a 12 per cent jump in Q2 profit over CPLY. Profit before tax (PBT) and Profit after tax (PAT) in Q2FY13 were Rs. 788 crore and Rs 543 crore respectively, as against Rs 706 crore and Rs 485 crore in CPLY. Sales turnover achieved by the company in July-Sept’12 at Rs.11976 crore is higher than CPLY.

Chairman, SAIL Mr.C.S.Verma remarked, “Higher production along with improvement in key Techno Economic parameters gave us profitability gains. Besides, growth in sales realisation gave us added benefits. Going forward, we are optimistic about the growth in the Indian Steel Industry and SAIL is appropriately ramping up its production to meet the growing demand.”

The sustained emphasis on operational improvements resulted in 3% reduction in energy consumption and 8% increase in BF productivity in Q-2 FY13. With a thrust on enriching product-mix, the company achieved, a growth of 7.5% in the sales of value-added steels in Q-2. Net Worth increased to a level of Rs. 41,053 crore as on 30thSeptember, 2012 as against Rs. 39,811 crore on 31stMarch, 2012.

With a production of 3.6 million tonnes of hot metal, 3.39 million tonnes of crude steel and 3.18 million tonnes of saleable steel , SAIL recorded a growth of 7 %, 5% and 4% respectively in Q2FY’13 over YoY.

Under its ongoing Modernization & Expansion Plan, several facilities are in different stages of completion and a few of them have been made operational. Significant project milestones achieved during the first half of the year include, starting of heating of new Coke Oven Battery & completion of project-work of the Wire Rod Mill at ISP, Burnpur; completion of 700 TPD ASU-4 at Oxygen Plant-II at BSP; commencement of Sinter production in the new sinter plant & heating of New Coke Oven battery at RSP. In the coming months, two large 4060m3 blast furnaces at ISP & RSP would commence production, enhancing the hot metal capacity by 5 million tonnes per annum.

Another important development towards raw material securitization of SAIL during the quarter was signing of an MOU with the Chhattisgarh State Government for development of an iron ore mines at Eklama Iron Ore Deposit through a JV to be formed between Chattisgarh Mineral Development Corporation Limited (CMDC) & SAIL. Eklama Iron Ore Deposit would be a supplementary iron ore source for Bhilai Steel Plant, which is ideally located at a distance of around 135 km from Bhilai. It is estimated to have a reserve of around 100 Million Tonnes of good quality ore. The MOU was signed in the Global Investors’ Meet held at Chhattisgarh on 2nd November,12.