Steel Authority of India Ltd announced that it has posted a net profit of INR 18.351 billion for the quarter ended June 30th 2008 as compared to INR 15.251 billion for the quarter ended June 30th 2007. Its total Income has increased from INR 83.464 billion for the quarter ended June 30th 2007 to INR 114.219 billion for the quarter ended June 30th 2008.

The improvement in financial performance during the first quarter of 2008-09, despite a burden of INR 14.34 billion on account of substantially higher cost of inputs like coal, freight, ferroalloys, fuels, etc and provision for higher wage revision as well as maintaining a constant price line during May to June of Q1, was mainly due to 10% growth in domestic sales over CPLY at 2.62 million tonnes including highest ever Q1 sales of special quality steels. This helped the company register sales turnover of INR 121.83 billion with growth of 37%, during the period.

With thrust maintained on production of value added and special steels, the SAIL plants produced about 1mn tons of these items during Q1, showing a growth of 41% over CPLY.

With utilization of finishing mills at an all time high in Q1, finished steel production comprised 88% of production as compared to 84% in CPLY. Further improvement in operational efficiencies also helped to improve the company's bottom line. With 121% of rated capacity utilization of continuous casting shops, production through this energy-efficient route crossed 2 million tonnes. This helped in achievement of 5% lower specific energy consumption at 6.89 giga calories per tonne of crude steel produced.

Mr SK Roongta chairman of SAIL said that "Our strategy of thrust on production of value added and special quality steels, higher production with still better capacity utilization and continual improvement in operational efficiencies has helped the company to offset cost pressures and improve profitability in spite of holding the price line."