SAIL Q3 PAT rises 4% YoY to Rs 1,529 cr

10 Feb 2022 , 12:05 PM

On a standalone basis, Steel Authority of India (SAIL)s net profit rose 12.46% to Rs 1,443.10 crore on 27.29% increase in net sales to Rs 25,245.92 crore in Q3 December 2021 over Q3 December 2020. EBITDA fell 30.88% year-on-year to Rs 3659 crore in Q3 December 2021.

Borrowings stood at Rs 19,128 crore for 31 December 2021, down 15% sequentially.

For the quarter under review, SAILs hot metal production stood at 4.9 million tonne (up 1.83% YoY); its crude steel production was at 4.5 million tonne (up 3.73% YoY) and the saleable steel production was at 4.4 million tonne (up 5.10% YoY).

SAIL said it has delivered one of its best physical performances during the quarter as well as nine months ending 31st December 2021. However, the same is not reflected in the financial performance of Q3 FY22 due to various factors beyond the control of the company which primarily include unprecedented increase in the prices of imported and indigenous coking coal. With the overall positive outlook in the economy and the announcements in the Union Budget for increasing the infrastructure spending, the performance is likely to improve in the coming quarters. The company said its focus remains to lower its borrowings and this is reflected in the reduction of about 15% over Q2.

During the quarter, the company implemented revised salaries and wages, effective 1 April 2020, after the expiry of long-term wage agreements with employees on 31 December 2016, the filing said. The employees benefit expenses charged to the statement of profit and loss (net off provision for wage revision) for the quarter stood at Rs 46.97 crore.

Another Rs 425.74 crore was charged to the statement of profit and loss on account of revised actuarial valuation of employees-related liabilities owing to implementation of wage revision.

Accordingly an amount of Rs 363.92 crore has been charged under exceptional item in the statement of profit and loss for the quarter ended 31st December 2021.

SAIL is one of the largest steel-making companies in India and one of the Maharatnas of the countrys Central Public Sector Enterprises. It produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. SAIL manufactures and sells a broad range of steel products.

Shares of SAIL were up 0.82% at Rs 104.45.

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