SAIL Reports Significant Dip in Quarterly Profit Amid Reduced Income

State-owned SAIL reported a 61.51% decrease in consolidated net profit to Rs 81.78 crore, attributed to reduced income. The company's total income declined, as did its expenses. Crude steel production and sales volume saw a slight drop. Chairman Amarendu Prakash remains optimistic about future growth driven by steady domestic steel consumption and government investments in infrastructure.

State-owned SAIL experienced a dramatic 61.51% drop in consolidated net profit, posting Rs 81.78 crore, mainly due to reduced income.

The company had logged a net profit of Rs 212.48 crore during the same period of the previous fiscal year, according to an exchange filing.

SAIL's total income for the quarter slid to Rs 24,174.80 crore from Rs 24,822.83 crore a year earlier, while expenses were recorded at Rs 23,871.60 crore compared to Rs 24,598.06 crore during the corresponding period last year.

The standalone profit after tax plummeted to Rs 10.68 crore from Rs 150 crore in April-June FY24.

In a separate release, SAIL reported its crude steel production at 4.67 million tonnes (MT), slightly down from 4.68 MT a year ago, and sales volume fell to 3.88 MT from 4.01 MT in the first quarter of FY24.

Chairman Amarendu Prakash stated that domestic steel consumption continues to grow, driven by both traditional and emerging sectors, with ongoing government investments in infrastructure expected to further stimulate growth.

Prakash expressed confidence that SAIL will focus on increasing production volumes and addressing challenges posed by cheaper imports appropriately in the future.

SAIL, under the Ministry of Steel, ranks among the top three steel manufacturing entities in India.

(With inputs from agencies.)