February 27, 2002
‘18’
SIIL MAKES PROFIT
Sponge Iron India Ltd. (SIIL), a Public Sector Undertaking of the Steel Ministry has made a cash profit of Rs.431 lakh and a corresponding net profit of Rs.181 lakh during April, 2001 to January, 2002. This improvement in performance is the result of its record 113 per cent capacity utilization, 21 per cent growth in volume of sales and high sales realization inspite of glut in Sponge Iron market.
The Government of India approved a financial restructuring of the Company involving conversion of outstanding loan of Rs.32.51 crore into equity and waiver of accumulated interest including penal interest amounting to Rs.36.78 crore as on March 2000. With this financial restructuring and overall improvement in the internal performance, the Company achieved a book profit of Rs.6.65 crore in 2001-02 against a loss of Rs.14.7 crore in the previous year.
The improvement in production and techno-economic performance have resulted in a drastic improvement in cost competitiveness of the Company. It plans to bring about a further improvement in performance through reduction in cost of raw material and reduction in manpower. The Company has already reduced its manpower by 53 per cent during the last 4 years and contemplates further reduction by another 20 per cent.