SAIL slips after weak Q1 performance

11 Aug 2022 , 01:31 PM

Revenue from operations rose by 16.4% YoY to Rs 24,029 crore during the quarter. Crude Steel Production increased by 14.9% to 4.33 million tonne in Q1 FY23 from 3.77 million tonne in Q1 FY22. Sales volume in the first quarter was 3.15 million tonne, down by 5.4% as compared with 3.33 million tonne recorded in the same period last year. EBITDA contracted by 61% to Rs 2,606 crore in Q1 FY23 from Rs 6,674 crore in Q1 FY22. Profit before tax in Q1 FY23 stood at Rs 1,038 crore, down by 79.8% from Rs 5,145 crore in Q1 FY22. SAIL said that the first quarter of FY23 saw twin challenges of higher input costs and subdued market demand, both global and domestic, impacting the performance of the company. High cost of production due to increase in imported coking coal prices had an impact on the bottom-line of the company. The decline in global demand and prices for steel had a direct bearing on the domestic market and price realisation. Since peaking in Aprir 2022, the prices for steel have continuously remained under pressure during the quarter. The company, however, said that the construction and infrastructure projects have gained momentum which will boost the demand for steel products. The company is confident of improved performances in the second half of the current financial year with significant reduction in prices of imported coal and uptick in demand. Steel Authority of India (SAIL) is one of the largest steel-making companies in India and one of the Maharatnas of the countrys Central Public Sector Enterprises. As of 31 December 2021, the Government of India owned about 65% of SAILs equity and retains voting control of the company. Powered by Capital Market - Live News