Steel Authority of India Limited (SAIL), a leading public sector steel producer in India, released its financial results for the quarter ended December 31, 2023. The company demonstrated stability in crude steel production compared to the previous quarter, indicating continued operational efficiency.
Highlights:
Crude steel production stable q-o-q: In the 3QFY24, the company maintained a q-o-q stability in crude steel production at 4.8 million tonnes (mnt). This represented a 2% year-on-year increase compared to the 4.7 mnt recorded in the third quarter of the fiscal year 2023. Cumulatively, for 9MFY24 crude steel production amounted to 14.2 mnt.
Approximately 98.6% of the total crude steel production was achieved through the Basic Oxygen Furnace (BOF) route, with the remaining 1.4% utilizing the Electric Arc Furnace (EAF) method.
Saleable steel production falls: In the current quarter, SAIL observed a 4% q-o-q decrease in saleable steel production, totalling 4.6 mnt as opposed to the previous quarter’s 4.8 mnt. Concurrently, in a y-o-y context, the production exhibited a 5% increase compared to the 4.8 mnt recorded in the 3QFY23. The cumulative saleable steel production for 9MFY24 reached 13.7 mnt.
Steel sales decline: Steel sales experienced a notable 21% quarter-on-quarter decline, totaling 3.8 million tonnes (mnt) in Q3FY24, in contrast to the 4.2 mnt reported in the preceding quarter. Furthermore, sales witnessed a 10% year-on-year decrease compared to the corresponding period last year (CPLY) at 4.8 mnt. The cumulative steel sales for 9MFY24 reached 12.5 mnt.
SAIL’s product mix comprised flats at 51.8%, longs at 34.5%, and semis at 13.7%. In CMO Home Sales product mix, HR Plates/Coils/Sheets accounted for 27%, Bars & Rods for 22%, and PM Plates for 14%.
In terms of sectorial distribution, CMO Home Sales constituted 94% of the total sales, while plant sales, exports, and special steels each contributed 2%.
EBITDA falls q-o-q: EBITDA fell to INR 2319 Crores in 3QFY24, registering a fall of 43% q-o-q against INR 4,043crore in the previous quarter. It rose by 6% y-o-y from INR 2,198 crore last year.
Coking coal consumption cost: Imported coking coal cost came increased to INR 26,500/t in Q3FY24 from INR 22,751/t in Q2FY24.
Net sales realisation (NSR) of mild steel: NSR of mild steel in 3QFY24 was INR 55,361/t up by 4% q-o-q. Meanwhile for 9MFY24 the NSR was INR 54,921/t lower by 6% CPLY.
Flat steel Q3FY24 NSR stood at INR 56,600/t. While NSR of long products was at INR 54000/t.
Saleable steel inventory: The company’s saleable steel inventory was at 1.795 mnt in 3QFY24 up by 0.616 mnt from 1.179 mnt in 2QFY24.