The Steel Authority of India (Sail) announced its financial results for the first quarter (Q1) of FY 2024-25, reflecting both steady operational performance and challenges due to market conditions.
In the first quarter (Q1) of FY 2024-25, Sail reported consistent crude steel production of 4.68 million tonnes, matching the 4.67 million tonnes produced in Q1 FY'24. Sales volume increased by 3.4 per cent to 4.01 million tonnes compared to 3.88 million tonnes in the same period last year.
Revenue from operations slightly decreased to Rs 23,998 crore from Rs 24,358 crore in Q1 FY'24. The company's EBITDA rose by 15 per cent to Rs 2,420 crore, reflecting stable core performance. However, Profit Before Tax (PBT) dropped significantly to Rs 14 crore, down from Rs 202 crore in Q1 FY'24, while Profit After Tax (PAT) fell to Rs 11 crore from Rs 150 crore.
The revenue decline was attributed to lower Net Sales Realisation (NSR) caused by an influx of cheap steel imports, which also impacted profit margins, further compounded by adjustments related to exceptional items.
Sail Chairman Amarendu Prakash commented on the results, noting the steady growth in domestic steel consumption driven by traditional and emerging sectors. He emphasised that ongoing government investments in infrastructure, as outlined in the recent budget, are expected to further stimulate growth. Despite challenges posed by cheaper imports, Sail remains optimistic and is focused on increasing production volumes.
Prakash also hinted at future strategies to address the issue of cheaper imports, underlining Sail’s commitment to bolstering its market position in the face of global competition.
With a positive outlook for the domestic steel sector, Sail is poised to navigate these challenges while capitalising on opportunities presented by the growing demand for steel in India's expanding infrastructure landscape.
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