Analysts estimate its profits to slump to as low as Rs 600 crore (Rs 6 billion) in third quarter ending December, 2005 almost half of what it recorded in second quarter at Rs 1,127 crore (Rs 11.27 billion).
However, SAIL chairman V S Jain, when contacted remained unperturbed and said "prices have been under pressure but now there is stability."
Most of SAIL's plants have been operating at over capacity of about 108 per cent and this shows a healthy picture of the corporation, he said, declining to comment on analysts forecast.
Steel majors world over have seen decline in their profits with their margins under pressure on account of point to point falling flat of products prices by 30 per cent in April-December at Rs 25,000 per tonne in December, 2005 from Rs 35,000 a tonne in April last year.
In line with the industry trend, Tata Steel also reported over 15 per cent decline in the net profit for the third quarter ending December, 2005.
Korean steel Posco also felt the pressure of falling prices in the last 9 months with a steep fall in profits.
Analysts felt though the volumes have grown in face of buoyancy in the economy, prices have come down as China is offloading extra capacity in Asian markets at lower prices leading to a lower price benchmark in India.