The company has improved its operating, gross and net margins to 20.7 per cent, 15.6 per cent and 5.8 per cent respectively as against 16.5 per cent, 11.5 per cent and 1.7 per cent respectively in the corresponding quarter of the previous year.

The improvement in margins, analysts say, can be attributed to the reduction in the raw material cost coupled with the reduction in the power cost as a percentage of the turnover. Purchase of power has increased to Rs 153.70 crore as against Rs 144.22 crore in the previous year.

Raw materials and power cost accounted for 16.69 per cent and 8.89 per cent of the turnover as against 19.79 per cent and 10.10 per cent in the corresponding quarter in the previous year. Exports constituted Rs 177.42 crore as compared with Rs 126.37 crore in the corresponding quarter.

Interest cost went up to Rs 103.11 crore as against Rs 85.84 crore in the corresponding quarter while expenditure incurred on employee separation compensation during the year increased to Rs 47.49 crore as against Rs 32.27 crore in the corresponding quarter.

Production of steel rose by 11.58 per cent to 8,34,906 tonnes while sales in volume terms increased by 13.02 per cent to 7,42,224 tonnes over the corresponding quarter respectively.