SAIL’s third quarter profits soars by nearly 400% on higher steel prices

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State-owned steel maker SAIL on Friday reported a consolidated net profit of Rs 1,468 crore for the third quarter ended December 2020, mainly on account of higher income, a growth of almost 400 per cent over the same period in the previous fiscal, when the state-owned steelmaker posted a net loss due to the global fall in steel prices. Prices have risen since then.

The company had clocked a net loss of Rs 343.57 crore during the same quarter a year ago, Steel Authority of India Ltd (SAIL) said in a BSE filing.

SAIL’s crude steel production grew by 9 per cent year-on-year (YOY) to 4.37 million tonnes. The total sales, including exports, grew by around 1 per cent YOY to 4.15 million metric tonnes, a rise of 6 per cent. Combined with the rise in steel prices, this pushed the turnover up ₹19,614 crore for the quarter, a growth of 19.6 per cent compared to the same period last fiscal.

There has been a countrywide turnaround in the overall economic activities after the short pause set in during the pandemic, SAIL said in a release. In sectors like infrastructure, construction, manufacturing and automobiles, which are major steel buyers, there has been a relatively rapid recovery, it added.

SAIL Chairman Soma Mondal said, “SAIL has shown overall improvement during the current financial year despite all the challenges. With the focus on seizing opportunities, the company has geared up to service the rising steel demand in the market as soon as the gradual opening of lockdown started. As we look ahead, we are confident of improving the performance further in the remaining period of the financial year.”

SAIL, under the Ministry of Steel, is the country’s largest steel maker having an installed capacity of about 21 million tonne per annum (MTPA).

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