Announcing the Q1 performance for the Financial Year 2019-20 (Q1 FY20), Steel Authority of India Limited (SAIL) declared profit before tax (PBT) of INR 103.93 crore and profit after tax (PAT) of INR 68.84 crore. The volatile market conditions, which have led to subdued demand as well as realisations, have impacted the performance of the entire Steel Industry including SAIL.
Accordingly, SAIL witnessed a reduction in its top-line as well as bottom-line despite having consistent physical performance.
Meanwhile, SAIL is maintaining the tempo of improving its physical performance and has registered its best ever Hot Metal and Saleable Steel performance for Q1 at 4.323 MnT and 3.653MnT respectively. Despite the challenging market conditions, SAIL achieved saleable steel sales volume of 3.249 MnT during the first quarter of FY’20 which was almost equal to the performance during CPLY.
The salient features of SAIL’s performance are given below:
| Item | Q1 FY 2019-20 | Q1 FY 18-19 |
| Hot Metal Production | 4.323 MnT | 4.266 MnT |
| Crude Steel Production | 3.930 MnT | 3.945 MnT |
| Saleable Steel Production | 3.653 MnT | 3.613 MnT |
| Sales Turnover | INR 14,645.19 Cr | INR 15,743.21 Cr |
| EBITDA (before exceptional) | INR 1766.33 Crore | INR 2685.46 Crore |
| PBT | INR 103.93 Crore | INR 827.84 Crore |
| PAT | INR 68.84 Crore | INR 540.43 Crore |
Source: Company Reports, SteelMint Research
Shri Anil Kumar Chaudhary, Chairman, SAIL said, “The domestic steel industry has witnessed lower NSR and subdued demand during the first quarter of the financial year compared to CPLY. However, with the government announcing planned investments in steel intensive sectors including infrastructure & construction, a positive impact can be expected for the industry for the rest of the financial year. Coupled with this, the Company’s strategic priorities to ramp up volumes especially from the modernized units, improving product-mix and improving operational efficiencies lend a positive outlook to the Company’s future. Inspite of market challenges, the Company has continued its profit streak over past seven quarters.”
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