SAIL declares turnaround Q2 result

Steel Authority of India (SAIL) reported a consolidated net profit of Rs 436.52 crore in Q2 September 2020 as compared to a net loss of Rs 285.92 crore in Q2 September 2019.

Total income rose 21.21% to Rs 17,393.86 crore in Q2 September 2020 over Q2 September 2019.

The result was announced after market hours yesterday, 6 November 2020. Shares of Steel Authority of India fell 0.65% to settle at Rs 38 yesterday.

SAIL said that the COVID-19 pandemic outbreak and measures to curtail it has caused significant disturbances and slow down of economic activities. Consequently, the company's manufacturing operations had to be scaled down during the quarter ended 30 June 2020. Following the resumption of operations during the later part of the first quarter, the company has operated at normal capacity in quarter ended 30 September 2020.

EBITDA in Q2 FY21 registered a growth of 58.7% over CPLY and stood at Rs 2098.09 crore. With the strategic focus on enhancing the saleable steel production, the company registered the best ever saleable steel Q2 production of 3.752 MT in Q2 FY21 surpassing the previous best of 3.658 MT achieved during Q2 FY18. The saleable steel production in Q2 FY21 grew by 5% over CPLY. The focus on operational efficiency also resulted in improvement in the key Techo-economic parameters during Q2 FY21 viz. Coke Rate (4%), blast furnace productivity (9%) and specific energy consumption (1%) over CPLY.

SAIL is engaged in the manufacturing of flat products, such as hot rolled (HR) coils, HR plates, cold rolled (CR) coils, pipes and electric sheets, and long products, such as thermo mechanically treated (TMT) bars and wire rods.

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