Mumbai, July 29 (IANS) Steel producing major Steel Authority of India (SAIL) Friday reported a decline of 28.77 percent in its net profit for the current fiscal at Rs.838.06 crore as compared to Rs.1,176.65 crore in the like period of last fiscal.

The company's gross sales rose by 19.73 percent in the quarter under review at Rs.11,890.54 crore against Rs.9,930.78 crore in the corresponding quarter of 2010-11.

The steel giant further reported a rise of 11.20 percent in its raw material consumption at Rs.5,228.96 crore as compared to Rs.4,702.14 crore in the first quarter of 2010-11.

The company's fuel and power consumption rose by 15.78 percent at Rs.1,017.05 crore as compared to Rs. 878.36 crore in the corresponding quarter of 2010-11.

SAIL said in a filing to the Bombay Stock Exchange (BSE) that it has merged manganese-based ferro alloys Maharashtra Elektrosmelt (MEL) with itself. The company would provide MEL shareholders one share of SAIL for every 1.7 shares of MEL.

Earlier, the company had received the approval from the ministry of corporate affairs to go ahead with the merger.