SEATTLE (Scrap Monster): Steel Authority of India Limited (SAIL) - the state-owned Indian steelmaker posted financial results for the June quarter. The company’s net profit plunged during the quarter, primarily on account of higher expenses.
In a regulatory filing, the company said that the consolidated net profit stood at INR 804.50 crore during the quarter. The profits recorded notable decline by 79% when compared with INR 3,897.36 crore recorded during the corresponding quarterly period last fiscal. The profits were badly impacted by higher expenses. Incidentally, the expenses during the quarter surged to hit INR 23,295.23 crore, compared with INR 15,604.07 crore a year before.
Meantime, the total income recorded significant jump from INR 20,754.75 crore in the year ago quarter to INR 24,199.51 crore in Q1 this fiscal.
SAIL’s quarterly crude steel production totalled 4.33 million tonnes, up from 3.77 million tonnes in the first quarter of the previous fiscal year.
The performance of the company was affected by twin challenges of higher input costs and subdued market demand, both globally and domestically. The bottom-line was impacted by high cost of production on account of rising imported coking coal prices. The weak global demand and prices for the commodity had a direct bearing on the domestic market and price realisation, SAIL noted.