Steel Authority of India Limited (SAIL) – govt owned steel mill has recently announced its quarterly results for Q2FY19.The steel mill has reported marginal decrease in its crude steel output on Q-o-Q basis. However its semis share of saleable steel production remain consistent in first two quarter of FY19.
1.SAIL crude steel production inch down in Q2FY19– Company’s crude steel production inch down by 6% to 3.70 MnT in Q2FY19 in comparison to 3.94 MnT in Q1FY19. On yearly basis, the same fall by 3% and stood at 3.83 MnT in Q2FY18.
2.Company’s saleable steel production marginally fall– Saleable steel production of SAIL recorded at 3.53 MnT in Q2FY19 which was 3.61 MnT in Q1FY19. On yearly basis the same fall by 3% in Q2FY19 as compared to 3.65 MnT in same quarter of FY18.
3.Company’s saleable steel sales increase by 6% in Q2FY19– Company’s saleable steel sales stood at 3.47 MnT in Q1FY19 up by 6% Q-o-Q as against 3.27 MnT in Q1FY19. However on yearly comparison it moved down by 2% in Q2FY19 as compared to 3.54 MnT in Q2FY18.
4.Company’s EBITDA witness sharp growth in Q2FY19– Company witness sharp growth in EBITDA which stood at INR 2,474 Crore in Q2FY19, climb by 156% against INR 966 CR in Q2FY18. However, on Q-o-Q basis, it slumps by 8% and the same stood at INR 2,685 Crore.
5.Semis Share of Saleable Production Consistent: Company’s semis share of saleable steel production which has observed to be firm during the first two quarters of FY’19 remains close to 21-22%. However, company intends to reduce semis share of production in the upcoming years due to low margin products and want to convert the same in the finished steel products over better realization.
Chairman of SAIL– Shri Anil Kumar Chaudhary said that –
“raising volumes, targeting to operate at rated capacities and focussing to meet the requirement of the Railways in terms of Rails and Wheels & Axles are our foremost priorities, along with upholding safety practices at the core. The domestic steel market is offering a positive platform; besides, we must also de-risk our operations from any externalities by being prepared with volumes, value additions and quality products”.
He also added that SAIL’s focus on approaching the market and customers with new products and sales force effectiveness will surely help catering the market requirements more adequately”.
SAIL is a leading steel producer in India with an annual production capacity of around 21 MnT. Company has reported that its saleable steel output was around 14.07 MnT in last fiscal year 2017-18.
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