SAIL turns soft on posting Q1 net loss of Rs 1226 cr

Steel Authority of India (SAIL) fell 1.39% to Rs 38.95 after 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. SAIL posted a pre tax loss of Rs 1930.23 crore quarter ending June 2020 as against a pre-tax profit of Rs 150.46 crore in quarter ending June 2019. The result was announced after market hours yesterday, 14 September 2020.

SAIL said that the COVID-19 pandemic caused significant disturbances and slowdown of economic activities. Consequently, company's manufacturing operations had to be scaled down. The operations resumed during the later part of the quarter with limited availability of workforce and disrupted supply chain.

Shares of SAIL have surged 93% from its 52-week low of Rs 20.15 posted on 30 March 2020.

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.

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