Sail inches up in early trade
Steel Authority of India rose 0.17% to Rs 59.45 at 9:17 IST on BSE after the Union Minister of Steel & Mines Narendra Singh Tomar yesterday, 15 June 2015, took stock of yearly performance of the company for FY 2014-15.
Meanwhile, the S&P BSE Sensex was down 52.89 points or 0.2% at 26,533.66.
On BSE, so far 2,855 shares were traded in the counter as against average daily volume of 2.54 lakh shares in the past two weeks.
The stock hit a high of Rs 59.65 and a low of Rs 59.20 so far during the day.
The Union Minister of Steel & Mines Narendra Singh Tomar yesterday, 15 June 2015, took stock of the yearly performance of three PSUs under the Ministry of Steel for FY 2014-15, namely Steel Authority of India (Sail), MSTC and Ferro Scrap Nigam (FSNL). While reviewing the performance of steel major Sail, Tomar expressed concern regarding the integrated operationalisation of upstream and downstream production facilities in a time-bound and synchronised manner. Asserting that capacity without production is meaningless, Tomar emphasised that pending issues in Sail's modernisation and expansion plan should be resolved at the earliest. The Minister urged Directors and CEOs of Sail to start production of finished goods from its modernised mills at the earliest. Tomar said that for profits to be higher, it is pertinent that techno-economics of production are internationally benchmarked, and the latter can't happen till the capitalisation of all of the Sail's production units are balanced. Director (Technical) Sail, SS Mohanty assured the Minister that the company will put in its best to complete commissioning at the earliest. Mohanty informed that Sail achieved record production of hot metal of 15.4 MT of hot metal, as against 14.45 MT in corresponding period last year. Apprised of the pressure put on net sales realisation (NSR) on account of depressed steel prices, the Minister advised Sail management to increase their share of value added steels, such as production of auto-grade steel. Tomar also expressed concern over the rising borrowing of the company to fund its expansion plan, and appreciated company's effort in launching a cost awareness initiative across all its plants and units.
Noting that capacity augmentation will lead to enhanced use of raw materials, Tomar directed Sail management to pay adequate attention to commensurate expansion of its mines, so that the company doesn't resort to procuring ores from outside market to feed growing production. Tomar consented to take up environmental and forest clearance issues with relevant ministries to help de-bottleneck the raw material security plan for Sail's current and future plans. Comparing Sail's performance with its peers, with respect to its decreasing sales turnover, Tomar asked the company to spruce up its competitiveness. Citing the falling market share of Sail, from 18.8% in 2009-10 to about 14% in 2014-15, Tomar advised the functional directors and CEOs to ensure better marketing of its enhanced production.
Sail's net profit fell 26.2% to Rs 334.22 crore on 13.8% decline in net sales to Rs 11469.37 crore in Q4 March 2015 over Q4 March 2014.
The Government of India held 75% stake in Sail (as per the shareholding pattern as on 31 March 2015).
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