The Steel Authority of India Limited’s (Sail) consolidated revenue from operation in Q3 (Oct-Dec) grew by 20pc to Rs198,357.1mn from the prior year quarter amid increased steel demand. Rapid recovery in infrastructure and auto sector fueled domestic steel demand in Q3, according to the company’s results release. Indian government’s emphasis on strengthening infrastructure helped healthy demand generation.
In December quarter, Sail posted a net profit of Rs14,682mn compared to a loss of Rs3,435.7mn in the prior year quarter. Profit rose by 286pc from Rs4,365.2mn in the September quarter. For the nine-months ended December 2020 (9M) net profits rose to Rs6782.5mn from a net loss of Rs5,268.1mn in the prior period.
Despite challenges, Sail has shown overall improvement in FY2021 with a focus on seizing opportunities and operating in sync with the market situation, said Soma Mondal, Chairman of Sail. The company is confident of improving its performance in Q4, she added.
|Sail’s Q3 consolidated production and results|
|Production (mn mt)||Q3FY2021||Change YoY|
|Turnover (Rs mn)||196,140||19.6pc|
Sail’s revenues from sales to government agencies in Q3 was Rs16.75bn and for nine-months was Rs53,7bn on provisional contract basis.