SAIL Q2 Results: Profit falls 31% to Rs 897 crore, total income down 16.8%

Steel Authority of India Ltd (SAIL) reported a 31% year-on-year (y-o-y) decline in consolidated net profit to Rs 897.15 crore for the second quarter of the current fiscal. Total income stood 16.80% lower at Rs 24,842.18 crore during the months under review.

The company said earnings this financial year have been ‘impacted by various challenges’ and hopes to post better results in the remaining months. In a filing to the exchanges, SAIL also said it is formulating a detailed plan for disposal of iron-ore inventories worth nearly Rs 4000 crore.

Lower y-o-y performance in the second quarter of this fiscal was influenced by factors like cheaper imports and decrease in prices, SAIL said.


Commenting on the results, company Chairman Amarendu Prakash said, “We expect the second half of the current financial year to bring more promising results compared to the first six months, which was impacted by various challenges.”

“Moving forward, with expected downtrend in steel imports and projected growth in capital expenditure,” he added.

SAIL is carrying sub-grade iron-ore fines inventory of 40.47 million tonnes as of September-end. This is valued at Rs 3894.77 crore, but these estimates are subject to market fluctuations. “The Company is formulating a detailed plan for disposal / consumption of these inventories,” SAIL said in exchange filings.

Standalone crude steel production during the quarter stood at 4.80 million tonnes (MT), up from 4.76 MT last year. Shares of the company closed 0.44% lower at Rs 123.30 a scrip on the BSE