SAIL's Q3 profit tumbles 22%, investors eye company's next move

13 Feb 2024 , 11:04 AM

On February 13, attention will be focused on Steel Authority of India (SAIL) shares after the state-owned steel manufacturer revealed a consolidated net profit of ₹423 Crore for the fiscal year that runs from October to December.

On a strong foundation, the profit decreased by 22% year over year in Q3FY23 despite an extraordinary gain of ₹298 Crore. Operating revenue for the quarter was ₹23,349 Crore, a 6.8% year-over-year decline.

SAIL’s stock dropped more than 7.63% to ₹123.45 on the NSE on February 12. ‘The consistent efforts by company towards increasing its volumes have had positive impact on financial performance despite significant decline in price realization during the quarter,’ stated Chairman Amarendu Prakash.

SAIL’s income from the Bhilai plant was approximately ₹6,500 Crore, a decrease of 12.1%, whilst the revenue from the Bokaro and Rourkela plants was ₹6,003.6 Crore and ₹5,863.3 Crore, respectively.
During the quarter, 4.75 Million tonnes of crude steel were produced, compared to 4.71 Million tonnes the previous year. In contrast, sales volume decreased from 4.15 Million tons to 3.81 Million tonnes.

Additionally, the public sector company announced an interim dividend of Re 1 for each equity share valued at ₹10. February 20 is the record date for the interim dividend payment.

In SAIL, the Centre owns about 65%, with FIIs and DIIs holding 4.3 and 15.5%, respectively. As of the quarter that concluded in December 2023, Life Insurance Corporation of India is the DII with the largest shareholding in the business, at 9.2%. The public owns the remaining 15.2% of the business. 
SAIL shares have increased by more than 40% over the last half-year, while the leading index Nifty 50 has increased by only 12% during that same period.

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