Continuing its efforts to improve the bottomline, Steel Authority of India Ltd has set an ambitious target of saving upto Rs 800 crore (Rs 8 billion) in the current fiscal with the help of lower interest outgo and cost cutting measures.

"Our interest outgo should come down by about Rs 400 crore (Rs 4 billion) in the current financial year as we are continuously reducing our high-cost debts. We also expect saving a similar amount from the company's aggressive efforts to cut cost," V S Jain, chairman, Sail, told PTI in New Delhi on Tuesday.

The targeted saving, which is up by Rs 100 crore (Rs 1 billion) from the last financial year, would help Sail to neutralise the impact of rising input prices, Jain said, adding that "we are determined to turn around by the end of 2003-04."

Declining to comment on Sail's targeted net profit in the current fiscal, Jain said, "Three years from now, we are hoping to earn an annual net profit of Rs 2,500 crore (Rs 25 billion)."

Jain's confidence stems from the fact that the steel market - both domestic and overseas - was looking upward both in terms of demand for steel and its prices.

Jain also exuded confidence about increasing the turnover of the company by upto 15 per cent, thereby crossing the Rs 20,000 crore (Rs 200 billion) mark this fiscal.

Jain said the company was out of Board for Industrial and Financial Reconstruction's ambit as its accumulated losses were reduced to about Rs 2,000 crore (Rs 20 billion). He, however, did not say as to when the accumulated losses would be wiped out.

"The mood is upbeat...our turnover in the current fiscal should grow by 14-15 per cent...we are optimistic to do even better," he said.

Earlier this week, Sail announced its best ever first quarter performance with net profit at Rs 255 crore (Rs 2.55 billion) compared to a net loss of Rs 309 crore (Rs 3.09 billion) in the same period last year.

Since last year, Sail has managed to bring down its accumulated losses to just over Rs 2,000 crore at the end of June this year -- thereby getting itself out of the ambit of BIFR.

Asked about Sail's plans to borrow fresh from the market, Jain said there was no such plan immediately. "If at all we go for fresh borrowing, it will be short-term debts," he added.