Steel Authority of India (SAIL) declined 1.56% to Rs 135.35 after the company’s standalone net profit dropped 92.87% to Rs 10.68 crore in Q1 FY25 from Rs 149.83 crore in Q1 FY24.
Revenue from operations fell 1.48% to Rs 23,997.78 crore during the quarter as compared with Rs 24,357.58 crore posted in same quarter last fiscal, the growth was affected by a decline in Net Sales Realization (NSR) in the domestic steel market due to cheap imports.
During the quarter, profit before exceptional items and tax stood at Rs 326.02 crore, up 42.23% as compared with Rs 202.15 crore in Q1 FY24. The steel making company reported exceptional loss of Rs 311.76 crore due to perquisites and allowances payable to executive employees and settlement of contractual disputes under Vivad Se Vishwas Scheme II.
Total expenses fell 2.95% to Rs 23,871.60 crore in Q1 FY25 as compared with Rs 24,598.06 crore in Q1 FY24. Cost of material consumed stood at Rs 13,701.16 crore (down 10.32% YoY), employee benefit expenses was at Rs 2782.64 crore (down 2.33% YoY), while finance cost was at Rs 691.45 crore (up 12.87% YoY).
EBITDA jumped 15% to Rs 2,420 crore in Q1 FY25 as compared with Rs 2,090 crore in Q1 FY24.
Sales volume stood at 4.01 million tonnes (MT) in Q1 FY25 as against 3.88 MT in Q1 FY24 while crude steel production was at 4.68 MT during the quarter as compared with Rs 4.67 MT posted in same quarter last year.
Amarendu Prakash, chairman, SAIL, said, Domestic steel consumption continues to grow steadily, driven by both traditional and emerging sectors. Additionally, ongoing Government investments in the infrastructure sector, as announced in the recent budget, are expected to bolster growth. With a positive outlook for the domestic steel sector, SAIL is focused on increasing its production volumes. The challenges posed by cheaper imports are anticipated to be addressed appropriately in the future”.
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 defence industries and for sale in export markets.
Powered by Capital Market – Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
First Published: Aug 09 2024 | 10:36 AM IST
