SAIL Q3 profit plunges 65% on higher expenses
1 min read . Updated: 13 Feb 2023, 10:41 PM IST
Premium- The steelmaker’s total income fell to Rs25,140.16 crore in the December quarter of the current fiscal year from Rs25,398.37 crore a year ago
NEW DELHI : Steel Authority of India Ltd (SAIL), a public sector undertaking on Monday reported 65% decline in its net profit at Rs542.18 crore for third quarter ending 31 December 2022. The company said its profit fell on account of higher expenses.
The PSU had posted a net profit of Rs1,528.54 crore in the October-December period last fiscal year.
The steelmaker’s total income fell to Rs25,140.16 crore in the December quarter of the current fiscal year from Rs25,398.37 crore a year ago.
SAIL said its total expenses rose to Rs24,825.11 crore, as compared to Rs23,209.88 crore a year ago.
“The challenging global situation and economic scenario all over the world had its impacts on the steel prices affecting the margins of the steelmakers," SAIL said in a statement.
SAIL said that its crude steel production was at 4.708 million tonne (MT) during October-December as compared to 4.531 MT a year ago period.
The company reported sales for the December quarter at 4.151 MT against 3.840 MT in the same period last year.
Minister of state for finance Bhagwat Karad said in Parliament on Monday that the government has decided to shut SAIL's loss- making Visveswaraya Iron & Steel Plant (VISP) at Bhadravathi in Karnataka.
In July 2019, the government had invited expression of interest (EoI) for selling SAIL's 100% stake in VISP. However, in October 2019, the government decided to scrap the strategic disinvestment plans of VISP due to low bidder interest.
“On account of old machinery, sub-optimal size, continuous losses and shutdown of blast furnace for a long time, it has been decided to initiate the process for closure of this unit," Karad said.
Shares of SAIL closed 1.42% down at Rs83.30 apiece on the BSE on Monday.
The PSU, under the ministry of steel, is India’s largest steel manufacturing company with an annual capacity of around 21 MT.
