SAIL Q2 steel sales jump 31% YoY

The state-run steel major registered a 31.3% growth in sales during Q2 September 2020 over Q2 September 2019.

SAIL added that post the COVID-19 related lockdown, the company has been witnessing an impressive sales performance which started in June 2020. This has led to the company's first half of the financial year ending March 2021 (H1) sales bounce back to the levels achieved during corresponding period last year (CPLY).

During the Q2 of FY2020-21, the saleable steel production also registered a growth of 5.2% over CPLY. The company said its strategic marketing efforts and customer-centric initiatives coupled with teamwork contributed to this improvement in sales and production.

Anil Kumar Chaudhary, chairman, SAIL commented, "The challenges during COVID-19 not only gave us an opportunity to test our resolve in the face of odds but also made us more determined to perform better. Our focused strategies coupled with zeal of the marketing team helped to leverage every single opportunity in the market. Also, the pick-up in the economic activities across sectors is enhancing the domestic steel demand. It is heartening that the Company has returned to previous year's sales level and is now focusing on ramping up production and sales further."

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. The Government of India held 75% stake in the company as on 30 June 2020.

The state-run steel major posted a consolidated net loss of Rs 1226.47 crore in Q1 June 2020 compared with net profit of Rs 102.68 crore in Q1 June 2019. Consolidated net sales for Q1 June 2020 stood at Rs 9,067.52 crore, nearly 39% lower than net sales of Rs 14,820.89 crore in Q1 June 2019.

The scrip rose 0.30% to Rs 33.95 on the BSE. It traded in the range of 33.95 and 35.15 so far during the day.

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