The country's largest steel maker SAIL on Friday reported a net profit of Rs 1,663.49 crore for the second quarter due to lower sales realisation and the merger of Bharat Refractories (BRL) with it.

The steel maker had a net profit of Rs 2,009.60 crore during the same quarter last fiscal.

The better-than-expected result of the current quarter is not comparable with that in the same quarter previous fiscal as the current quarter figures include the earnings of BRL, which was merged with the company pursuant to the government order in July, the company said.

"The biggest impact on the profit was on account of lower price realisation. Last year in the second quarter steel prices were at historic peak," SAIL Chairman S K Roongta said in New delhi.

The "adverse impact due to lower price realisations" in the reporting period over that of a year ago was to the tune of Rs 3,000 crore, he added.

However, the company is hopeful of a better third quarter as demand and prices almost bottomed in the year-ago period. "We expect 11-12 per cent demand growth in the third quarter", he said, adding that he subscribes to World Steel Association's prediction of over nine per cent growth in India's steel demand this fiscal.

"The government's thrust on the infrastructure sector will give a fillip to steel demand in this fiscal," he said.