Steel Authority of India Ltd on Tuesday reported a net profit of Rs 255 crore (Rs 2.55 billion) during the first quarter ended June, 2003 as against a net loss of Rs 309 crore (Rs 3.09 billion) for the corresponding quarter last fiscal.

"This is a significant improvement of Rs 564 crore (Rs 5.64 billion) and that too despite a drop in international steel prices during April-June 2003," a SAIL statement said.

The turnover of SAIL increased by 14 per cent to Rs 4,765 crore (Rs 47.65 billion) in the first quarter of the current fiscal.

Commenting on the quarterly performance, V S Jain, chairman, SAIL, said, "SAIL is all set on a path of turnaround. The organisation is geared up to encash the emerging market opportunities. This only spells the beginning of a new era of prosperity for the company to progress further in the months to come."

The profit of Rs 255 crore is also the highest-ever to be achieved by the company in any first quarter, which is generally a lean period due to the major capital repairs being scheduled after the completion of a fiscal and other seasonal factors.

SAIL's plan to export around 1 million tonne of steel during the current financial year also got off to a good start with exports of around 330,000 tonnes during April-June 2003.

The growth of 162 per cent in exports over the corresponding period last year was not only due to the resumption of good demand from China after a short interval in the beginning of the quarter, but also due to improved orders from countries like Korea, Thailand and European Union, the statement added.