SAIL posts Rs 8.34 Bn net profit for July-September quarter
ECONOMY & POLICY

SAIL posts Rs 8.34 Bn net profit for July-September quarter

Public sector steel giant SAIL reported a standalone net profit of Rs 8.34 billion for the July-Sept quarter of the current financial year which represents a 32.7 % decline over the corresponding figure of Rs 12.41 billion during the same quarter of 2023-24.

The company's revenue was adversely impacted by the flood of cheap Chinese imports which led to a decline in steel prices. SAIL revenue came down by 17 % to Rs 246.75 billion during the second quarter compared to Rs 29,714 crore in the same quarter of the previous year.

The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) declined to Rs 31.74 billion during the second quarter from Rs 40.43 billion in the same period last year. According to a SAIL statement, the company's performance in the second quarter of the current financial year has shown improvement compared to the previous quarter. Revenue from operations, EBITDA, and sales volume all increased in Q2 FY'25 over Q1 FY'25.

However, lower performance in Q2 FY'25 compared to the same period last year (Q2 FY'24) was influenced by factors like cheaper imports which led to a decline in prices.

Commenting on the results, SAIL Chairman Amarendu Prakash said: "We expect H2 FY'25 to bring more promising results compared to H1 FY'25, which was impacted by various challenges. Moving forward, with the expected downtrend in steel imports and projected growth in GDP & capital expenditure, the second half of FY'25 may yield better performance."

Steel Authority of India Ltd will be investing Rs 65 billion towards capex during the current financial year as part of its Rs 1 trillion investment plan over the next few years, Prakash said earlier this year. He also said that SAIL has a regular capex on maintaining its facilities, as well as debottlenecking exercises. Most of the capex expansion to be invested by 2030 will start flowing from FY26.

Public sector steel giant SAIL reported a standalone net profit of Rs 8.34 billion for the July-Sept quarter of the current financial year which represents a 32.7 % decline over the corresponding figure of Rs 12.41 billion during the same quarter of 2023-24. The company's revenue was adversely impacted by the flood of cheap Chinese imports which led to a decline in steel prices. SAIL revenue came down by 17 % to Rs 246.75 billion during the second quarter compared to Rs 29,714 crore in the same quarter of the previous year. The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) declined to Rs 31.74 billion during the second quarter from Rs 40.43 billion in the same period last year. According to a SAIL statement, the company's performance in the second quarter of the current financial year has shown improvement compared to the previous quarter. Revenue from operations, EBITDA, and sales volume all increased in Q2 FY'25 over Q1 FY'25. However, lower performance in Q2 FY'25 compared to the same period last year (Q2 FY'24) was influenced by factors like cheaper imports which led to a decline in prices. Commenting on the results, SAIL Chairman Amarendu Prakash said: We expect H2 FY'25 to bring more promising results compared to H1 FY'25, which was impacted by various challenges. Moving forward, with the expected downtrend in steel imports and projected growth in GDP & capital expenditure, the second half of FY'25 may yield better performance. Steel Authority of India Ltd will be investing Rs 65 billion towards capex during the current financial year as part of its Rs 1 trillion investment plan over the next few years, Prakash said earlier this year. He also said that SAIL has a regular capex on maintaining its facilities, as well as debottlenecking exercises. Most of the capex expansion to be invested by 2030 will start flowing from FY26.

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