Steel Authority of India Limited’s (Sail) hot metal production fell by 38pc to 2.67mn mt in Q1 of fiscal year 2020-21 compared to prior-year period. Sail’s crude steel production was down by 37pc to 2.47mn mt.
The company’s saleable steel sales fell by 31pc to 2.23mn mt in the same period. Sail’s Q1 results in the domestic market were severely impacted due to COVID-19 pandemic. However, in Q1 FY21, its steel exports surge by 122pc to 0.53mn mt compared to 0.24mn mt in prior year.
The production of semis component increased to 39.58pc in Q1 from 19.12pc in Q1 FY20 as the company focused on exporting it and reduced production of finished products in line with the demand.
Post lockdown, domestic steel market gradually recovered with increased in trade activities, which is why Sail shifted focus on domestic in July.
Sail sales volume increased 50pc in July 2020 to 1.58mn mt, compared to prior-year period, of which domestic sales accounted for 1.27mn mt. It also registered an increase in sales volume by 35pc or 1.43mn mt in August compared to prior-year period.
However, Sails recorded a loss of Rs12.7bn compared to a profit of Rs 690mn in the prior year.
Sail’s operational performance for Q1 FY21:
|Prod & Sales fig (in mn mt)||Q1FY21||Q1FY20||Y-o-Y|
|Hot Metal Production||2.678||4.323||-38%|
|Crude Steel production||2.474||3.93||-37%|
|Saleable Steel Production||2.278||3.653||-38%|
|Saleable steel sales||2.237||3.249||-31%|
|Semis component in production||39.58%||19.12%|