NEW DELHI, AUG 11, 2023
Steel Authority of India Limited (SAIL) has reported a 74 per cent decline in consolidated net profit to Rs 212.48 crore in the first quarter (Q1) of the financial year 2023-24 (FY24). The company had reported Rs 804.5 crore as net profit in the comparable period of the previous fiscal.
Total income during the period under review stood at Rs 24,822.83 crore, up from Rs 24,199.51 crore in the first quarter of fiscal 2022-23. The lower profit is on account of higher expenses that were reported at Rs 24,598.06 crore during the quarter ending June 2023, up from Rs 23,295.2 crore in the same months last fiscal. Lower product prices also acted as a dampener for the company.
For the quarter ended June, standalone crude steel production came in at 4.67 MT as compared to 4.33 MT during the same period previous year. Sales Volumes too saw a rise to 3.88 during the quarter under review from 3.15 MT in Q1FY23.
“Best ever Q1 performance has been achieved by the company with respect to Productions and Sales. The Company has registered a growth in the Crude Steel Production, and Sales Volumes by 8% and 23% respectively over CPLY. Despite increase in volumes, the turnover has increased by 1% due to decline in price realization.
With the coking coal prices stabilizing and market outlook positive for; sustained consumption growth in the country, margins are likely to improve going forward. The company is also taking up debottlenecking and efficiency improvement projects to shore up the profitability in the medium term,” the steel major said in a release.