SAIL targets saving Rs 800 cr on interest outgo and cost cut

NEW DELHI: Continuing its efforts to improve its bottomline, state-owned Steel Authority of India Ltd (SAIL) has set an ambitious target of saving up to Rs 800 crore in the current fiscal with the help of lower interest outgo and cost cutting measures.

"Our interest outgo should come down by about Rs 400 crore in the current financial year as we are continuously reducing our high-cost debts... we are also expecting saving of similar amount from company's aggressive efforts to cut cost," VS Jain, SAIL chairman told PTI.

The targetted saving, which is up by Rs 100 crore from last financial year, would help SAIL to neutralise the impact of rising input prices, Jain said, adding that "we are determined to turn around by the end of 2003-04”.

Declining to comment on SAIL's targetted net profit in the current fiscal, Jain said, "Three years from now we are hoping to earn annual net profit of Rs 2,500 crore."

This would be double the net profit, SAIL ever registered in 1994-95.

Jain's confidence stems from the fact that the steel market, both domestic and overseas, was looking upward both in terms of demand for steel and its prices.

Jain also exuded confidence about increasing the turnover of SAIL by up to 15 per cent thereby crossing the Rs 20,000 mark in this fiscal.

Jain said the company was out of BIFR's ambit as it's accumulated losses were reduced to about Rs 2,000 crore. He, however, did not say as to when the accumulated losses would be wiped out.

"The mood is upbeat... our turnover in current fiscal should grow by 14-15 per cent... we are optimistic to do even better," Jain said.

Earlier this week, SAIL announced its best ever first quarter performance with net profit at Rs 255 crore compared to a net loss of Rs 309 crore in the same period last year.

Since last year, which saw a record price rise in a single year, SAIL has managed to bring down its accumulated losses to just over Rs 2000 crore at the end of June this year thereby getting itself out of the ambit of BIFR.

Asked about SAIL's plans to borrow fresh from the market, Jain said there was no such plan immediately. "If at all we go for fresh borrowing these will be short-term debts."

PTI[ TUESDAY, AUGUST 05, 2003 02:09:59 PM ]