SAIL posts rise in first-quarter profit on lower costs, strong domestic demand

Steel Authority of India reported a rise in first-quarter profit on Friday, helped by a marginal rise in steel prices due to a temporary tariff imposed on some imports, easing input costs and strong domestic demand. The state-owned company's consolidated profit before exceptional items and tax more than doubled year-on-year to 9.68 billion rupees ($111.90 million) during the quarter ended June 30. The company recorded a one-time cost of 3.12 billion rupees a year ago. Its revenue from operations rose 8% to 259.22 billion rupees. KEY CONTEXT Last week, JSW Steel, India's top steelmaker by market capitalisation, beat profit estimates on the back of higher prices and easing input costs. India had imposed a 12% temporary tariff on some steel imports in April to help domestic mills, which have been under pressure from low-cost shipments from China. That moderated finished steel imports into the country and prompted domestic steelmakers to bridge the supply gap, boosting the metal's prices.

Costs of iron ore and coking coal - key steelmaking raw materials - dropped in the quarter, analysts said, helping the bottom line of the mills.