Steel Authority of India (SAIL), the state-owned steel giant, reported a 31% year-on-year drop in its consolidated net profit for the September quarter, registering a profit of ₹897.15 crore. This was a decline from ₹1,305.59 crore posted in the same period last year. The fall in profit was attributed to a reduction in income during the quarter.
In an exchange filing, SAIL stated that its total income for the second quarter of FY25 stood at ₹24,842.18 crore, down from ₹29,858.19 crore in the corresponding period of FY24. The company’s expenses for the quarter were ₹23,824.07 crore, lower than ₹27,768.60 crore in the same quarter last year, showing a reduction in operational costs.
SAIL’s crude steel output remained largely stable, falling slightly to 4.76 million tonnes (MT) in the July-September 2024 quarter, compared to 4.76 MT in the same period last year. However, steel sales saw a decline, dropping to 4.10 MT from 4.77 MT in the previous year’s September quarter.
In a statement, Amarendu Prakash, Chairman of SAIL, expressed optimism about the company’s performance in the second half (H2) of the financial year. He said, “We expect H2 FY25 to bring more promising results compared to H1 FY25, which was impacted by various challenges. With a projected decline in steel imports and anticipated growth in GDP and capital expenditure, we believe that H2 FY25 may yield better performance.”
SAIL’s performance in the first half of FY25 was impacted by various macroeconomic challenges, but the company remains hopeful that the second half will bring improved results, supported by favorable conditions in the steel market and broader economic recovery.
