SAIL Q1 net profit up 18% to Rs530 crore on higher sales
The net sales realisation rose to Rs36,858 per tonne from Rs35,777 a tonne, on the back of resurgent demand
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New Delhi: State-run Steel Authority of India Ltd. (SAIL) on Monday reported an 18% increase in net profit to Rs530 crore for the first quarter of the fiscal year as sales rose and it earned more money per tonne of the alloy as demand strengthened.
SAIL’s revenue rose 10% in the quarter ended 30 June to Rs12,515 crore. The net sales realisation of the company rose to Rs36,858 per tonne during the quarter from Rs35,777 a tonne, on the back of resurgent demand.
“I think net sales realisation will improve further. Monsoon is going to be over in next few weeks and I believe demand will be brisk. The management’s continued emphasis on production and sale of value-added products has also enabled higher net sales realisation, which was better than the earlier quarters," chairman C.S. Verma said.
Sales by volume rose to 2.76 million tonnes (mt) during the April-June quarter, against 2.62mt during the same period last year.
The hot metal capacity of the company stands at 17.5 million tonnes per annum (mtpa) and is forecast to touch 19.5mtpa by the end of the current year. The current phase of expansion will further take the company’s capacity to 23.5mtpa by the next financial year. Verma said SAIL plans to take its production capacity further to 50mtpa by 2025 in the next phase of expansion.
SAIL shares rose 2% to Rs83 on the BSE on a day the benchmark Sensex gained 0.75% to 25,519.24 points.
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