Steel Authority of India Ltd (SAIL), a state-owned company, reported a 66.5% year-on-year (YoY) decline in net profit to ₹141.9 crore for the quarter ended 31 December 2022 (Q3 FY25). The company’s net profit stood at ₹422.9 crore in the same quarter last year, according to a regulatory filing on Tuesday.
Though profit had dropped, revenue from operations grew 4.9% YoY to ₹24,489.9 crore Vs ₹23,348.6 crore in Q3 FY24. EBITDA decreased 5.3% YoY to ₹2,029.6 crore in comparison to ₹2,142.5 crore in Q2FY23. EBITDA margin narrowed to 8.3%, compared to 9.2% in Q3 FY24, reflecting cost pressures and pricing challenges in the steel market.
The steel sector is facing headwinds, which affect its profitability, SAIL Chairman Amarendu Prakash said, adding falling prices and rising competition from cheaper imports are major worries.
“Though faced by this headwinds SAIL managed to maintain the higher EBITDA over the previous years. We are focused on scaling up production, enhancing cost efficiency and transitioning to greener technologies,” Prakash said.
He said he is optimistic that government moves to limit low-cost imports and continued investment in infrastructure would spur demand for domestic steel and help the industry rebound. All should go well in its furthering to the spin-off of the construction arm, if the market had recovered and a new PC transaction could be initiated in a more energetic environment.
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