SAIL records Q2 net loss of Rs 386 cr

Steel Authority India (SAIL) reported standalone net loss of Rs 385.82 crore in Q2 FY23 as compared to a net profit of Rs 4,303.62 crore in Q2 FY22.

The company's pre-tax loss was at Rs 515.59 crore in Q2 FY23 as against a pre-tax profit of Rs 5,752.89 crore reported in the corresponding quarter last year.

Crude Steel Production fell 3.8% to 4.30 million tonne in Q2 FY23 from 4.47 million tonne in Q2 FY22.

Sales volume during quarter was 4.21 million tonne, down by 1.64% as compared with 4.28 million tonne recorded in the same period last year.

EBITDA was steeply lower at Rs 1,174 crore in Q2 FY23 as against Rs 7,248 crore recorded in Q2 FY22.

The company said that the margins have been impacted by prices of imported coal and slowing down of demand of steel across economics. However, the on-going sustained infra push gives signs of belter times ahead for the Indian steel market.

On consolidated basis, SAIL reported a net loss of Rs 329.36 crore in Q2 FY23 as against a net profit of Rs 4,338.75 crore in Q2 FY22. Revenue from operations declined 2.2% year on year to Rs 26,246.34 crore in the quarter ended 30 September 2022.

Steel Authority of India Ltd (SAIL) is the leading steel-making company in India. The company is a fully integrated iron and steel maker, producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defence industries and for sale in export markets. They are also among the seven Maharatnas of the country's Central Public Sector Enterprises.

The scrip rose 2.02% to currently trade at Rs 85.85 on the BSE.

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