New Delhi: Public sector major Steel Authority of India Ltd (SAIL) made a net profit of Rs.75.37 billion in financial year 2007-08, marking an increase of 21.52 percent from the previous fiscal, the company said here after the release of its annual financial results on Friday.

The company reported gross annual sales of Rs 455.55 billion for fiscal 2007-08. SAIL's fourth quarter net profit in 2007-08 rose nearly 25 per cent to Rs.23.76 billion from Rs.19.02 billion in the same period of the previous financial year.

SAIL also recorded highest steel production of 3.5 million tonnes during January to March 2008, taking annual production to 13 million tonnes during FY2007-08. The public sector company has paid Rs.6.73 billion as interim dividend to the Central government for FY2007-08.

"This is the highest interim dividend paid by the company so far. The company will also pay the government dividend tax amounting to Rs 1.33 billion for the interim dividend payout," said SAIL Chairman S K Roongta.

“The profit has happened even though companies have now frozen rates to help the government curb inflation. However there is lot of pressure on the cost because of the increase of input cost which may affect our next quarter profit,” he said.

With steel prices emerging as a major contributor to inflation, SAIL and other steel firms recently agreed to hold their prices for up to three months, following an intervention by the government as part of its inflation-control measures.

According to the latest wholesale price index data released on Friday for the week ended on May 3, steel and iron prices fell. However, inflation advanced to its highest level in three-and-a-half years at 7.83 per cent.

Source : IANS