SAIL swings back with Rs393.92 cr Q2 net profit
11 Nov 2020
Public sector Steel Authority of India Limited (SAIL) has reported an after-tax (net) profit of Rs393.32 crore for the fiscal second quarter ended 30 September 2020-21 against a net loss of Rs342.84 crore in the corresponding quarter of the previous fiscal.
Profit before tax (PBT) for the quarter stood at Rs610.32 crore against a loss of Rs523.03 crore and in the corresponding quarter of the previous fiscal, reflecting a strong comeback amidst the pandemic.
The company’s robust performance during Q2 FY’21 reflects a fast reviving economy and domestic market which has been battling the adverse impact of the Covid 19 Pandemic during the initial month of the year. Signifying the pick-up in performance and activities, SAIL’s turnover in Q2 FY’21 also registered an improvement of more than 20 per cent over CPLY and stood at Rs16,834.1 crore. Earnings before interest, taxes, depreciation and amortization (EBITDA) for Q2 FY’21 recorded an astounding growth of 58.7 per cent YoY and stood at Rs2,098.09 crore.
The company performed exceptionally well and maintained the sales growth momentum from June’20 onwards. After the first two months of the FY’21, which were impacted by the pandemic, the cumulative performance has been largely made up by consistently better performance since then. SAIL registered an impressive 31.3 per cent growth in sales during Q2 FY’21 over CPLY.
With the strategic focus on enhancing the saleable steel production, the company reported the best ever saleable steel Q2 production of 3.752 million tonnes in Q2 FY’21 surpassing the previous best of 3.658 million tonnes achieved during Q2 FY’18. The saleable steel production in Q2 FY’21 grew 5 per cent over CPLY. The focus on operational efficiency also resulted in improvement in the key Techo-economic parameters during Q2 FY’21, viz, Coke Rate (4 per cent), Blast Furnace Productivity (9 per cent) and Specific Energy Consumption (1 per cent) over CPLY.
“The year began with unforeseeable challenges, which had engulfed the entire world. It was a time to foster synergy and channelize all our energy and determination to surmount the obstacles and prove our mettle. SAIL Collective did this and the Company registered profit in Q2 FY’21 by braving all odds and exhibiting substantial growth in the operational performance,” Anil Kumar Chaudhary, chairman, SAIL said.
“The company is determined to perform better in future and is geared up to take all necessary actions to remain a world-class domestic steel producer towards building an Atmanirbhar Bharat,” he added.