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SAIL soars after strong Q4 update

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Steel Authority of India (SAIL) jumped 4.12% to Rs 87.25 after the company recorded its best ever quarterly performance in both production and sales during Q4 FY21.

The Maharatna PSU's crude steel production rose 6% to 4.55 million tonnes (MT) in Q4 FY21 from 4.31 MT recorded on in Q4 FY20. The company's steel production has improved by 4% as compared to 4.37 MT steel produced in Q3 FY21.

SAIL recorded 14% jump in steel sales at 4.27 MT in Q4 FY21 as against 3.74 MT in Q4 FY20. Sequentially, the company's steel sales rose 3% in Q4 FY21 from 4.15 MT in Q3 FY21.

Despite the volatility in the market during the year, the determined efforts by the company to improve its volumes saw it clock its best ever annual sales at 14.87 MT, a growth of 4.4% over 14.23 MT during FY20.

Commenting on the performance, Soma Mondal, chairman, SAIL said, "After the difficult market conditions during the initial months of the financial year, the company adopted focussed approach on improving its volumes, improving operational efficiencies, operating the facilities at optimum levels, deleveraging its balance sheet, reducing its inventory levels, etc.

The multipronged strategy has helped us top the performances during the month, quarter as well as the year. The team effort by the SAIL employees helped in seizing the opportunity offered by the pick-up in the economic activities in the country especially the steel intensive sectors like infrastructure, construction, automobiles, etc."

In line with its focus on reducing the borrowings, the company has reduced its gross debts by around Rs 16,150 crore to stand at Rs 35,330 crore (provisional) as on 31 March 2021 vis-a-vis Rs 51,481 crore as on 31 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 company reported a net profit of Rs 1,468.20 crore in Q3 FY21 as against a net loss of Rs 343.57 crore in Q3 FY20. Net sales during the quarter 19.91% YoY to Rs 19,835.71 crore.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, April 05 2021. 09:24 IST