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India's Largest Steel Maker Posts Standalone Profit of Rs 554 Cr For Q2

SAIL celebrates Diwali with improved numbers for the second quarter of 2018 as in the same period last year the company had posted a loss of Rs 540 Cr 

India's Largest Steel Maker Posts Standalone Profit of Rs 554 Cr For Q2
India's Largest Steel Maker Posts Standalone Profit of Rs 554 Cr For Q2

New Delhi: Steel Authority of India posted a net profit of Rs 554 cr for the quarter ended September, helped by robust revenue growth in its Eastern Indian plants. The country’s second-biggest steel company by assets had posted a loss of Rs 539 cr for the same period last year. Although, according to data released by Refinitiv SAIL's net profit came in below analysts’ estimates; which on an average was expected at around 829 cr rupees.

"Raising volumes, targeting to operate at rated capacities and focussing to meet the requirement of the railways in terms of rails and wheels and axles are our foremost priorities, along with upholding safety practices at the core."

The standalone income during the second quarter increased by 23.1 per cent to Rs 16,832.37 crore, compared to Rs 13,666.5 crore in the year-ago period, according to a regulatory filing by SAIL. In this period total expenses increased to Rs 15,950.25 cr during the second quarter from Rs 14,108.84 in the corresponding quarter of the previous fiscal.

Speaking to Press SAIL Chairman Anil Kumar Chaudhary said, "Raising volumes, targeting to operate at rated capacities and focussing to meet the requirement of the railways in terms of rails and wheels and axles are our foremost priorities, along with upholding safety practices at the core." "The domestic steel market is offering a positive platform; besides, we must also de-risk our operations from any externalities by being prepared with volumes, value additions and quality products," he added. SAIL's focus on approaching the market and customers with new products and sales force effectiveness will surely help catering the market requirements more adequately, he added. Showing overall improvements including operational performance, the EBITDA for the second quarter of FY2018-19 was at Rs 2,473.54 crore, a growth of 156 percent over the same period last year which was Rs 966.56 crore, SAIL said.

The numbers indicate a fast recovery in the company's profitability, operational performance and a collective effort towards driving the full advantage of modernisation and expansion, it added. Ramping up production from new units, achieving the production and techno-economic targets remain the top priority of the company, it said.

"The domestic steel market is offering a positive platform; besides, we must also de-risk our operations from any externalities by being prepared with volumes, value additions and quality products,"

In the second quarter of this fiscal, the company's saleable steel production stood at 3.537 million tonnes. In the first half of the ongoing fiscal, the company's saleable steel production was at 7.151 MT, registering an increase of 4.2 percent over the corresponding period of the last fiscal.