Powered by fresh initiatives and enhanced sales realisations, state-run steel giant SAIL on Friday said it has registered a net profit of Rs 1,663.49 crore for Q2. This is, however, lower by 17.3 per cent from the corresponding period last year, owing to dipped realisations and rising input costs. SAIL chairman S K Roongta said the net profit registered was primarily due to implementation of several management initiatives, best-ever second quarter sales besides substantial additional realisation from sale of secondary products.

“The adverse impact due to lower price realisations was about Rs 3,000 crore. Last year, steel prices were at a historic peak. We expect around 12 per cent growth in demand in the third quarter,” Roongta said, adding that he hoped for an improved demand in the near future. SAIL’s capital expenditure of Rs 2,450 during the period was more than double that of last year.

“In the third quarter we will certainly be keep our thrust on cost reduction. There is expected to be some pressure on prices and we will make utmost efforts to improve our margins,” Roongta said.