SAIL shares melt 7% on weak Q2FY25 results; PAT slips 31%, revenue down 17%

Steel Authority of India (SAIL) share price slipped 6.7 per cent in trade on Friday (November 8) on BSE and registered an intraday low of Rs 115 per share. Selling pressure in the stock came after the company reported weak Q2FY25 results.

 

Around 9:28 AM, SAIL shares were down 3.53 per cent at Rs 118.95 per share on BSE. In comparison, the BSE Sensex was down 0.22 per cent at 79,367.84. The market capitalisation of the company stood at Rs 49,127.45 crore. The 52-week high of the stock was at Rs 175.65 per share on BSE and 52-week low of the stock was at Rs 85.31 per share.

 

On Thursday, post market hours, SAIL reported a 31 per cent fall in consolidated net profit to Rs 897.15 crore as compared to Rs 1,305.59 crore a year ago.   The company's revenue also declined 17 per cent at Rs 24,675 crore as compared to Rs 29,714 crore a year ago.

 

The company's total income decreased to Rs 24,842.18 crore from Rs 29,858.19 crore in the second quarter of the preceding 2023-24 financial year. Its expenses stood at Rs 23,824.07 crore as compared to Rs 27,768.6 crore in the year-ago quarter.

 

In a separate statement, the company said its crude steel output fell marginally to 4.76 million tonnes (MT) from 4.76 MT in July-September last fiscal. Sales also decreased to 4.10 MT from 4.77 MT in the same quarter a year ago.

 

The Earning before interest, tax, depreciation and amortisation (Ebitda) stood at Rs 2,904 crore as compared to Rs 3,869 crore a year ago which implies a reduction of 25 per cent.  

 

The Ebitda margins of the company for the quarter under review stood at 11.8 per cent as compared to Rs 13 per cent, a contraction of 120 basis points (bps).

 

"We expect H2 FY25 to bring more promising results compared to H1 FY25, which was impacted by various challenges. Moving forward, with an expected downtrend in steel imports and projected growth in GDP and capital expenditure, H2 FY25 may yield better performance," said Amarendu Prakash, chairman, SAIL.

 

SAIL is one of the largest state-owned steel manufacturing companies in India. It operates under the Ministry of Steel, Government of India, and was established in 1954. SAIL produces a wide variety of steel products and has a significant presence in both the Indian and international steel markets.

 

In the past one year, SAIL shares have gained 43.4 per cent against Sensex's rise of 22.4 per cent.