New Delhi: The Steel Authority of India Ltd. (Sail) reduced its net loss by 26% to Rs 539 crore in Q2FY18 from a net loss of f Rs 732 crore in Q2FY17. Despite improved sales revenue, earnings were impacted by huge rise in imported coal price, which partially negated the higher accruals.
The Sail registered 21% growth in net sales revenue which stood at Rs. 13,442 crore for the second quarter of FY17-18 (Q2FY18) as against Rs. 11,080 crore in CPLY. Sail’s emphasis on increasing the share of high value products in its basket has begun to positively influence revenue earnings.
The Central sector steel company recorded 4% growth in domestic sales in H1FY18 (Apr-Sept’17) with 21% improvement in sales of high value products like Cold Rolled and galvanized products. There has also been a sizable 30% improvement in sales of railway products during H1 FY18.
Registering positive Ebitda for the sixth consecutive quarter, Sail achieved EBITDA of Rs. 967 crore before exceptional expenses in Q2FY18, recording a growth of more than 400% against an Ebitda of Rs. 192 crore during CPLY, and posting a cash profit pre-depreciation and exceptional items of Rs. 323 crore in Q2FY18. Notably, the Ebitda for Q2FY18 is higher than of the entire fiscal 16-17. Sail’s Ebitda margin to net sales revenue ratio stands at 7.1% in Q2FY18 as against 1.7% in CPLY, indicating higher efficiencies across the production processes and value chain.
SAIL’s operational performance also exhibited good numbers In Q2FY18, registering the highest ever quarterly saleable steel production at 3.659 million tonnes (mt) and surpassing the previous best of 3.626 mt achieved in Q4FY16-17, with growth of 5% over CPLY and 14% over preceding quarter in the current financial year.
Reiterating the need to change product mix to make way for more value added and differentiated products, Chairman, SAIL, Shri PK Singh said, “Our focus on reducing operating cost of assets, prudent finance management, efficient production process and increased share of value added and branded products is beginning to show results. .