The state-run company sold 4.01 million tonnes of steel during the quarter, up more than 3 percent from a year ago, but its operating revenue fell 1.5 percent to Rs 23,998 crore.
“…operating revenue was impacted by lower Net Sales Realised (NSR) in the domestic steel market due to cheaper imports,” the company said in a statement.
However, earnings before interest, tax, depreciation and amortisation rose 15 percent year-on-year to 24.2 billion rupees, indicating continued stability in its core business, the company said.
SAIL, one of India’s largest steel makers, reported profit before special items and tax of Rs 326 crore against Rs 202 crore a year ago. Profit after special items fell to Rs 11 crore against Rs 150 crore a year ago. “…Continued government investments in infrastructure announced in the recent budget are expected to boost growth. With a bright outlook for the domestic steel sector, SAIL is focused on increasing production,” said Amalendu Prakash, chairman of the company. “The challenge posed by cheap imports is expected to be adequately addressed in the future,” he added. SAIL reported profits after the market closed and its shares closed 3 percent lower at Rs 137.45 on the NSE.
