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New Delhi, May 16 The country’s largest steel maker Steel Authority of India Ltd (SAIL) today reported a profit after tax (PAT) of Rs 7,536.78 crore for 2007-08, up 21.52 per cent over Rs 6,202.29 crore posted in 2006-07.

For the fourth quarter ended March 2008, the company registered a 24.97 per cent increase in PAT at Rs 2,376.76 crore as compared with Rs 1,901.88 crore in the same quarter last fiscal.

The company today announced its highest ever final dividend of 37 per cent of which 19 per cent was paid as interim. The annual turnover stood at Rs 45,555.34 crore.

Announcing the results, the SAIL Chairman, Mr S.K. Roongta, said that streamlining international processes, cost cutting and reducing energy consumption have contributed 72 per cent growth in profits while higher prices accounted for 28 per cent growth. Steel prices have increased by 30-50 per cent in the last few months.

Pointing out that rising raw material costs remain the key challenge, he said that “this is the steepest cost pressure ever faced by the steel industry.” SAIL’s raw material cost for the fourth quarter increased by 7.88 per cent when PAT increased by 24.97 per cent, while for the full year, raw material cost increased by only three per cent while profitability improved by 21.52 per cent. This has been possible because SAIL has captive raw materials, he said.

Mr Roongta said that export duty on steel products would affect the industry in the long run. “It is our hope and belief that it is a temporary measure taken in extraordinary circumstances. If it is taken as a permanent measure, it could affect the resources of the steel industry,” he said.

After falling out with the National Mineral Development Corporation (NMDC) in the setting up of a steel plant in Chhattisgarh for which it signed an MoU, SAIL is again planning a joint venture with NMDC, this time for lime stone mining.

“We are hoping for a 50:50 joint venture, which is likely to develop NMDC’s limestone mines near Solan in Himachal Pradesh,” he said.

“The joint venture will allow us to have long-term security for our limestone needs,” he said.

SAIL shares today moved up by 7.5 per cent to close at Rs 186.35 on the NSE

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