Indian Stock Market Tips | Steel | SAIL posts Rs 554-crore profit as earnings jump
Steel Authority of India (SAIL) on Friday reported a standalone net profit of Rs 554 crore during the July-September quarter on the back of higher steel prices and improved realization.
Steel Authority of India (SAIL) on Friday reported a standalone net profit of Rs 554 crore during the July-September quarter on the back of higher steel prices and improved realization. The company had posted a loss of Rs 540 crore during the same period a year back.
Earnings before interest, tax, depreciation, and amortization (EBITDA) at Rs 2,474 crore was up 156% year-on-year. Total income increased 23% to Rs 16,832 crore. However, finance costs went up to Rs 771 crore from Rs 643 crore a year earlier.
Sales during the period saw a marginal improvement at 3.47 million tonne and realization was higher due to increased prices of the alloy.
In the first half of the current fiscal, according to CARE Ratings, average prices for CR coils, HR coils and TMT bars increased between 27% and 29% on a year-on-year basis.
During the April-September period, prices of CR coils, HR coils and TMT bars averaged at Rs 61,550 per tonne, Rs 55,716 per tonne and Rs 49,139 per tonne,
Chairman Anil Kumar Chaudhary said, “Raising volumes, targeting to operate at rated capacities and focusing to meet the requirement of the railways in terms of rails and wheels and axles are our foremost priorities, along with upholding safety practices at the core. The domestic steel market is offering a positive platform. Besides, we must also de-risk our operations from any externalities by being prepared with volumes, value additions, and quality products.
SAIL’s focus on approaching the market and customers with new products and sales force effectiveness will surely help cater to market requirements more adequately, Chaudhary said.
Showing overall improvements, including operational performance, the EBITDA for the second quarter was at Rs 2,473.54 crore, a growth of 156% over Rs 966.56 crore in the year-ago period.
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