Steel Authority of India Ltd (SAIL) released its financial results for the fiscal’s first quarter ended June (Q1FY24) on August 10. Here are the key highlights:
- Consolidated Net Profit Decline: SAIL reported a significant 73.6% year-on-year fall in its consolidated net profit for Q1FY24, which stood at ₹212.48 crore, compared to ₹804.50 crore in the year-ago period. Sequentially, consolidated net profit was down 81.7% from ₹1,159.21 crore in Q4FY23.
- Consolidated Revenue from Operations: The Company’s consolidated revenue from operations rose by 1.4% on a year-on-year basis to ₹24,359.10 crores during the quarter ended June. This is compared to ₹24,028.62 crore in Q1FY23. Total income rose to ₹24,822.83 crore in the first quarter, compared to ₹24,199.51 crore in the year-ago period.
- Total Expenses: SAIL’s consolidated total expenses for Q1FY24 rose to ₹24,598.06 crore from ₹23,295.23 crore in the previous year.
- EBITDA Improvement: The Company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q1FY24 stood at ₹2,606 crore, compared to ₹2,090 crore during the same period in the previous year.
- Production and Sales Volumes: Standalone crude steel production came in at 4.67 million tonnes (MT) for the quarter ended June, compared to 4.33 MT during the same period in the previous year. Sales volumes also saw a rise to 3.88 MT during the quarter under review from 3.15 MT in Q1FY23.
Despite an increase in volumes, the company’s turnover increased by only 1% due to a decline in price realization. SAIL achieved its best-ever Q1 performance in terms of production and sales volumes, with an 8% growth in crude steel production and a 23% growth in sales volumes compared to the previous year.
SAIL highlighted that with coking coal prices stabilizing and a positive market outlook for sustained consumption growth in the country, the company expects margins to improve in the future. Additionally, SAIL is working on debottlenecking and efficiency improvement projects to enhance profitability in the medium term.
SAIL also provided information about its iron-ore fines inventory and stated that it had secured necessary clearances for its operations, including environmental and safety clearances.
SAIL is one of the top four steel-producing firms in India and operates under the Ministry of Steel. Despite challenges, the company continues to focus on improving production and efficiency to enhance profitability in the competitive steel industry.
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