SAIL dips on weak Q1 results

Steel Authority of India (sail) has slipped 2% to Rs 204, after the company reported 12% fall in net profit to Rs 1,177 crore for the first quarter ended June 2010, as against Rs 1,330 crore in the same period of year ago. Total operational income grew marginally from Rs 9,163 crore to Rs 9,133 crore during the quarter.

Lower income from other sources, higher staff and interest cost dented the net profit growth of steel maker. Other income declined 29% to Rs 386 crore (Rs 540 crore), while interest burden increased by 55% to Rs 130 crore (Rs 84 crore).

The employees' cost has increased 86% to Rs 2,012 crore (Rs 1,080 crore), due to additional provision of Rs 299 crore towards employees related benefits, compared to reversal of estimated provisions of salaries and wages revision of Rs 199 crore in the corresponding period of previous year.

The stock opened at Rs 207 and touched low of Rs 201 on the BSE. As many as 430,000 shares have changed hands on the counter so far.