Shares of Steel Authority of India (SAIL) fell over 2% on Thursday morning, following the company’s disappointing earnings report for the quarter ended June 2024.
Financial Highlights
- Net Profit: SAIL’s profit plunged nearly 93% year-on-year to ₹11 crore. The decline was attributed to pricing pressures from cheap imports and an exceptional loss of ₹312 crore.
- Revenue: The company reported revenue from operations of ₹23,998 crore, a decrease of 1.5% compared to the same period last year.
- Sales Volume: SAIL sold 4.01 million tonnes of steel during the quarter, which is an increase of over 3% from the previous year.
- EBITDA: Earnings before interest, tax, depreciation, and amortization (EBITDA) rose 15% year-on-year to ₹2,420 crore, indicating stable core operations despite the overall decline in profitability.
| Particulars | Q1 FY24 | Q1 FY23 | % Change |
|---|---|---|---|
| Net Profit | ₹11 crore | ₹150 crore | -93% |
| Revenue from Operations | ₹23,998 crore | ₹24,362 crore | -1.5% |
| Sales Volume | 4.01 million tonnes | 3.89 million tonnes | +3% |
| EBITDA | ₹2,420 crore | ₹2,105 crore | +15% |
Key Factors
SAIL attributed the revenue decline to reduced Net Sales Realization (NSR) in the domestic steel market due to competition from cheaper imports.
Market Reaction
As of 10:45 AM, SAIL shares were trading 2.07% lower at ₹134.60 on the NSE.
