Back on Track: SAIL rebounds and posts net profit in Q2FY21

Aligning with the signs of recovery in the Indian economy, SAIL in Q2 of FY 2020-21 has posted PBT of Rs 610.32 crore and PAT of Rs 393.32 crore against loss of Rs 523.03 crore and Rs 342.84 crore respectively for PBT and PAT over CPLY
Back on Track: SAIL rebounds and posts net profit in Q2FY21
  • SAIL second-quarter result aligns with signs of recovery in the Indian economy, posts positive PAT in Q2FY21

  • Maharatna PSU has posted PBT of Rs 610.32 crore and PAT of Rs 393.32 crore against loss of Rs 523.03 crore and Rs 342.84 crore respectively for CPLY

New Delhi: Steel Authority of India Limited (SAIL) has declared the financial results for the second quarter of the current financial year (Q2 of FY 2020-21) which reflects a strong performance. During the period SAIL has posted Profit Before Tax (PBT) of Rs 610.32 crore and Profit After Tax (PAT) of Rs 393.32 crore against loss of Rs 523.03 crore and Rs 342.84 crore respectively for PBT and PAT over the corresponding period last year (CPLY).

The profit achieved during the second quarter of FY2020-21 reflects the resilience and robust performance by the company in a fast reviving economy and domestic market which has been battling the adverse impact of the COVID-19 Pandemic during the initials month of the year. Signifying the pick-up in performance and activities, SAIL's turnover also in Q2 of FY2020-21 registered an improvement of more than 20 percent over CPLY and stood at Rs 16,834.1 crore. The EBITDA of Q2 of FY2020-21 registered an astounding growth of 58.7 percent over CPLY and stood at Rs 2,098.09 crore.

In an official statement, the company said that it is determined to face every odd thrown by the onset of COVID-19, performed exceptionally well and maintained the sales growth momentum from June 2020 onwards. After the first two months of the FY2020-21, which were impacted by the pandemic, the cumulative performance has been largely made up by consistently better performance since then. SAIL registered an impressive 31.3 percent growth in sales during Q2 of FY2020-21 over CPLY.

With the strategic focus on enhancing the saleable steel production, the SAIL registered the best ever saleable steel Q2 production of 3.752 MT in Q2 of FY2020-21 surpassing the previous best of 3.658 MT achieved during Q2 of FY2017-18. The saleable steel production in Q2 of FY2017-18 grew by 5 percent over CPLY. The focus on operational efficiency also resulted in improvement in the key Techno-economic parameters during Q2 of FY2017-18 viz. coke rate (4 percent), blast furnace productivity (9 percent) and specific energy consumption (1 percent) over CPLY.

Commenting on the performance of the company in the second quarter of the current financial year, SAIL's Chairman AK Chaudhary said, "The year began with unforeseeable challenges, which had engulfed the entire world. It was a time to foster synergy and channelize all our energy and determination to surmount the obstacles and prove our mettle. SAIL Collective did this and the Company registered profit in Q2 FY'21 by braving all odds and exhibiting substantial growth in the operational performance. The Company is determined to perform better in the future and is geared up to take all necessary actions to remain a world-class domestic steel producer towards building an Atmanirbhar Bharat".

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