SAIL Q2 net up 117% at Rs 1,180 crore on exceptional gains

State-owned steel major SAIL today reported over a 2-fold jump in standalone net profit to Rs 1,180.39 crore for the quarter ended September 30, primarily due to an exceptional gain of Rs 1,056 crore for damages from foreign suppliers of coking coal.

The country's largest steelmaker had reported a net profit of Rs 543.11 crore in the July-September quarter of the previous fiscal, 2012-13.

"During the current quarter/half year, the company received an amount of Rs 1,056.26 crore towards damages due to non-supply of full quantity of contracted hard coking coal by foreign suppliers. The amount has been considered as an 'exceptional item' by the company," SAIL said in a filing to the BSE.

That apart, the company reported subdued sales, rise in expenditure as well as finance costs and decline in other income and taxes.

SAIL's total income stood at Rs 11,535.51 crore, up 6.66 per cent, during the quarter against Rs 10,815.56 crore in the year ago period.

The company's total expenditure, at Rs 11,067.42 crore, amounted to nearly 96 per cent of its total income during the quarter. In Q2 of 2012-13 fiscal, SAIL's expenditure (at Rs 10,113.63 crore) was 93.51 per cent of its total income (Rs 10,815.56 crore).

Its finance costs were up over 16 per cent to Rs 216.48 crore, while other income declined by over 33 per cent to Rs 152.71 crore in the last quarter. The company's tax outgo also declined by over 13 per cent to Rs 212 crore in Q2 of FY'14.

SAIL's scrip fell by 1.82 per cent to close at Rs 64.85 on the BSE today.