SAIL Q3 PAT slips 62% YoY to Rs 126 cr

Steel Authority of India (SAIL) reported a standalone net profit dropped 62.04% to Rs 125.80 crore in Q3 FY25 from Rs 331.40 crore in Q3 FY24.

However, revenue from operations grew 4.9% year on year to Rs 24,489.63 crore in the quarter ended 31 December 2024.

During the quarter, profit before exceptional items and tax stood at Rs 289.50 crore, down 24.67%, compared with Rs 384.29 crore in Q3 FY24. The steelmaking company reported an exceptional profit of Rs 28.53 crore in the same quarter of the previous fiscal.

Total expenses rose 6.16% year on year to Rs 24,564.44 crore during the quarter. Cost of material consumed stood at Rs 11,785.47 crore (down 14.23% YoY), employee benefit expenses were at Rs 2,720.52 crore (down 7.41% YoY), and finance cost was at Rs 679.48 crore (up 10.69% YoY) during the period under review.

EBITDA stood at Rs 2,389 crore in Q3 FY24, registering the growth of 3.02% as compared with Rs 2,319 crore in Q3 FY23.

Sales volume stood at 4.43 million metric tons (MT) in Q3 FY25 as against 3.81 MT in Q3 FY24, while crude steel production was at 4.63 MT during the quarter, compared with Rs 4.75 MT posted in the same quarter last year.

On the margins front, the firms operating margin declined to 9.76% in Q3 FY25, compared with 9.93% recorded in Q3 FY24, while the net profit margin dropped to 0.51% in Q3 FY25 from 1.42% registered in the corresponding quarter of the previous fiscal.

Amarendu Prakash, chairman at SAIL, said, "In the face of a challenging steel market characterized by declining prices and an influx of cheap imports, SAIL has managed to achieve better EBITDA during the Q3 FY25 compared to the corresponding period last year. We remain steadfast in our commitment to boost production and enhance cost efficiency while simultaneously further exploring and adopting greener technologies. We expect that with appropriate interventions, the issue of cheap imports will be addressed, and the government's drive on infrastructure development will bode well for the domestic steel industry while driving the demand further."

Steel Authority of India (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 defense industries and for sale in export markets.

Shares of Steel Authority of India (SAIL) gained 5.24% to Rs 105.40 on the BSE.

Powered by Capital Market - Live News