SAIL Q2 net loss narrows to Rs 539 crore on higher sales

Steel Authority of India Ltd (SAIL)  said on Thursday its net loss for the quarter ended September 30 (Q2) had narrowed to Rs 539.06 crore on account of higher sales revenue.

The state-owned firm registered 21 per cent growth in net sales revenue, which stood at Rs 13,442 crore for Q2, against Rs 11,080 in year-ago quarter, SAIL said in a statement. The company said the reason for higher revenue was the company’s emphasis on increasing the share of high-value products in its basket.
 

Reiterating the need to change the product mix to make way for more value-added and differentiated products, SAIL Chairman P K Singh said, “Our focus on reducing operating cost of assets, prudent finance management, efficient production process and increased share of value-added and branded products is beginning to show results.” 

However, despite improved sales revenue, earnings were impacted by a huge rise in imported coal price, which partially negated the higher accruals. SAIL recorded four per cent growth in domestic sales in the April-September period and 21 per cent improvement in sales of high-value products such as cold rolled and galvanised products. The company’s sale of railway products rose 30 per cent in the first six months of FY18.

SAIL’s Ebitda (earnings before interest, taxes, depreciation and amortisation) was Rs 967 crore before exceptional expenses in Q2. In order to neutralise the rise in input costs, the company is continually ramping up production from new facilities, SAIL said.

In line with the government’s strategy for improving infrastructure, SAIL is aiming to supply large quantities of steel in prestigious projects such as Sagarmala, the upcoming Bharatmala and railway expansion, etc., Singh said.