SAIL Q1 Results: Net profit slumps 93% YoY to Rs 11 crore on weak pricing, exceptional item

MUMBAI – Steel Authority of India’s profit nosedived nearly 93% on year to Rs 11 crore in the June quarter as pricing was hit by cheap imports into the country, and the steel-maker had an exceptional loss of Rs 312 crore.

The state-owned company sold 4.01 million tonne of steel during the quarter, up more than 3% compared to the previous year. Its revenue from operations, though, was 1.5% lower at Rs 23,998 crore.

“…revenue from operations was affected by a decline in Net Sales Realization (NSR) in the domestic steel market due to cheap imports,” the company said in a statement.

Earnings before interest, tax, depreciation and amortisation, though, rose 15% on year to Rs 2,420 crores, indicating that core operations remained steady, the company said.

SAIL is one of the largest producers of steel in the country, and its profit before exceptional items and tax stood at Rs 326 crore compared to Rs 202 crore a year ago. Post the exceptional item, the bottomline reduced to Rs 11 crore compared to Rs 150 crore a year ago.“…ongoing Government investments in the infrastructure sector, as announced in the recent budget, are expected to bolster growth. With a positive outlook for the domestic steel sector, SAIL is focused on increasing its production volumes,” Amarendu Prakash, the chairman of the company said.“The challenges posed by cheaper imports are anticipated to be addressed appropriately in the future,” he added.SAIL reported its earnings after the close of market hours, and its shares ended at 137.45 rupees on the NSE, down 3% from the previous close.