Sales volume up 49% y-o-y Steel Authority of India Ltd (SAIL) reported a consolidated net profit of ₹3,897 crore for the first quarter of FY22, as against a loss of ₹1,226 crore a year ago. The company had reported a net profit of ₹3,470 crore for the previous quarter.
The company recorded earnings before interest, taxes, depreciation and amortisation of ₹6,741 crore, as against an EBITDA loss of ₹70 crore in the previous year. The company’s EBITDA was at ₹6,526 crore in the previous quarter.
It recorded a revenue of ₹20,642 crore in the quarter to June, more than double from ₹9,067 crore in the year-ago period.
SAIL said that it brought down its gross debt by ₹5,063 crore during the quarter. The company’s total debt was at ₹35,330 crore as of March 31. The company’s total expenses during the quarter were ₹15,604 crore, as against ₹11,325 crore a year ago.
SAIL’s Bhilai steel plant reported a revenue of ₹5,548 crore, being the biggest contributor of around 24 percent of the company’s total revenue.
“The demand in the later part of the year is expected to remain healthy with sustained domestic consumption coming from sectors like infrastructure, manufacturing, packaging, automotive, etc. as indicated from the present consumption cycle and future sectoral trends,” Soma Mondal, chairman, SAIL, said.
Domestic prices reported a decline in flat and long products in July. The quantum was more for longs as compared to flats due to a slowdown in demand. However, demand is expected to pick up from September onwards but whether that will be accompanied by price rise or not is uncertain.
Benefiting from high prices
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