State-Owned SAIL Reduced Debt Significantly

SEATTLE (Scrap Monster): The Steel Authority of India (SAIL) posted healthy profit in the third quarter of the current fiscal year. The steelmaker reduced debt by almost 7,000 crore, when matched with the peak level of around 52,000 crore in April last year. The company intends to reduce its debt further in future.

Commenting on the company’s performance, Soma Mondal, Chairperson noted that it had to face twin challenges at the start of the current financial year- the challenges posed by Covid-19 pandemic on one side and the liquidity and profitability issues due to running the plants at minimum levels on the other side.

However, the company stood up to the challenges to deliver its best-ever sale performance month after month after lifting of lockdown. In fact, SAIL posted a net profit of INR 1.283 crores, mainly aided by uptick in activity in the construction, infrastructure and manufacturing sectors. At the end of Q3, SAIL’s debt stood around INR 46,610 crore. Mondal noted.

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Further, Mondal stated that the government-approved strategic disinvestment of its three special steel plants is being handled by the Department of Investment and Public Asset Management (DIPAM).