SAIL posts Rs 1,306-cr profit in Q2
The state-owned firm posted 13% growth in consolidated revenue from operations at Rs 29,712 crore in Q2FY24
- Nov 10, 2023,
- Updated Nov 10, 2023 5:18 PM IST
Steel Authority of India Ltd on Friday reported consolidated net profit of Rs 1,306 crore for the quarter ended September 30, 2023, helped by sturdy domestic demand and lower input costs. It reported net loss of Rs 329 crore in the year-ago period.
The state-owned firm posted 13% growth in consolidated revenue from operations at Rs 29,712 crore in Q2FY24 as against Rs 26,246 crore in Q2FY23.
On Friday, SAIL's scrip on BSE closed trading 1% higher at Rs 88.
SAIL's profit was further aided by lowering costs of iron ore and metallurgical coal, the two key raw materials used in steel manufacturing. Quarterly raw material costs plunged more than 11% to Rs 13,517 crore.
Revenue from its biggest unit, the Bhilai steel plant, grew around 45% to Rs 10,064 crore, driving an over 13% jump in the company's revenue from operations.
"Consistent efforts by the company towards increasing its volumes have had a positive impact on the financial performance despite the significant decline in the price realization in the market. It remains committed towards improving capacity utilization, value addition and cost competitiveness besides de-carbonisation efforts," SAIL said in a statement.
During the quarter, SAIL's crude steel production rose to 4.80 million tonne (MT) from 4.30 MT in July-September 2022. Sales improved to 4.77 MT over 4.21 MT in the year-ago period.
SAIL, under Ministry of Steel, is among India's largest steel manufacturing companies with an annual installed capacity of over 20 MT.
Steel Authority of India Ltd on Friday reported consolidated net profit of Rs 1,306 crore for the quarter ended September 30, 2023, helped by sturdy domestic demand and lower input costs. It reported net loss of Rs 329 crore in the year-ago period.
The state-owned firm posted 13% growth in consolidated revenue from operations at Rs 29,712 crore in Q2FY24 as against Rs 26,246 crore in Q2FY23.
On Friday, SAIL's scrip on BSE closed trading 1% higher at Rs 88.
SAIL's profit was further aided by lowering costs of iron ore and metallurgical coal, the two key raw materials used in steel manufacturing. Quarterly raw material costs plunged more than 11% to Rs 13,517 crore.
Revenue from its biggest unit, the Bhilai steel plant, grew around 45% to Rs 10,064 crore, driving an over 13% jump in the company's revenue from operations.
"Consistent efforts by the company towards increasing its volumes have had a positive impact on the financial performance despite the significant decline in the price realization in the market. It remains committed towards improving capacity utilization, value addition and cost competitiveness besides de-carbonisation efforts," SAIL said in a statement.
During the quarter, SAIL's crude steel production rose to 4.80 million tonne (MT) from 4.30 MT in July-September 2022. Sales improved to 4.77 MT over 4.21 MT in the year-ago period.
SAIL, under Ministry of Steel, is among India's largest steel manufacturing companies with an annual installed capacity of over 20 MT.