Up 24%, SAIL achieves highest-ever Q1 sales volume at 3.9 MT, crude steel output rises 8% to 4.6 MT
Steel Authority of India (SAIL) reported an eight per cent year-on-year growth in its crude steel production at 4.667 million tonnes (MT) during the first quarter of fiscal 2023-24. During the April-June period, the state-owned steel producer said its hot metal output rose seven per cent year-on-year (y-o-y) to 5.037 MT and production of saleable steel grew to 4.405 MT, up eight per cent from the first quarter of the preceding 2021-22 fiscal.
“SAIL clocks best ever Q1 in production and sales. The figures represent a remarkable growth,” the steel maker said in a statement. The company attained its highest-ever sales performance in the first quarter by achieving a sales volume of 3.9 MT, posting a y-o-y rise of 24 per cent. SAIL is among the top three steel producing companies in India having an annual capacity of around 20 MT.
Also Read: LIC raises stake in SAIL to 8.687% via open market purchase
Last month, India’s leading life insurer LIC hiked its shareholding in government-owned leading steel producer, SAIL. The insurer’s stake has been raised by 2.001 per cent to 8.687 per cent in SAIL. The transaction was carried out in an ordinary course in the open market and in tranches.
As per the regulatory filing by LIC, the insurer has increased its shareholding from over 27.61 crore equity shares to 35.88 crore equity shares in SAIL. This means that LIC’s stake of 6.686 per cent is increased by 2.001 per cent to 8.687 per cent of the paid-up capital of SAIL. The shares were bought at an average cost of ₹66.18 apiece in SAIL.
In the January-March quarter of fiscal 2022-23, SAIL reported a consolidated net profit of Rs.1159.21 crore compared to Rs.2478.82 crore in the year-ago period. The company reported total income of Rs.29416.39 crore during the period ended March 31, 2023, compared to Rs.31175.25 crore during the period ended March 31, 2022.
‘’Domestic steel demand registered a healthy growth during FY23 which augured well for SAIL. Apparent steel consumption in India was up 14 per cent on a YoY basis in Q4FY23 and was up 13 per cent on YoY basis for FY23. Also, the recent softening trend in coking coal prices augurs well for the company, however the benefit of lower coking coal prices is likely to come with a lag of one quarter as steel players generally carry couple of months of inventory,” said ICICI Direct on SAIL’s Q4FY23 results.
On July 4, shares of SAIL settled 0.02 per cent lower at ₹87.47 apiece against a previous close of ₹87.49 on the BSE.
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Updated: 04 Jul 2023, 10:14 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.