Steel Authority of India Ltd. (SAIL) recorded the best ever sales of 3.6 Million Tonnes (MT) in the second quarter of the current financial year (FY 16-17) which is 32% higher over corresponding period last year (CPLY). In the second quarter, SAIL also recorded the highest ever Q2 saleable steel production at 3.492 MT, with a growth of 31% over CPLY.
In the first half of the financial year 16-17, during April-Sept’16, SAIL registered a growth in Sales by 18 %, Saleable steel Production by 20% and improvement in market share by 12.7%.
In these difficult market conditions, SAIL management’s suitably tailored marketing strategies, customer & market centric approach and the concerted efforts to ramp up production from the modernized facilities resulted in sales growth across all product categories. Also in keeping with its focus to increase global footprint, SAIL’s exports more than doubled in H1.
SAIL’s gross turnover stood at Rs. 12,431 Crores and was higher by 22% as compared CPLY on account of higher sales volume.Continuing the trend from the first quarter of this fiscal, SAIL recorded a positive EBIDTA ,in Q2 also, of Rs 180 Crores compared to (-) Rs. 829 Crores in Q2 FY 15-16. The PAT for Q2 FY 16-17 was (-) Rs 732 Crores as against (-) Rs 1,108 Crores in CPLY. Despite an improved physical performance and positive EBIDTA factors like high global coal prices, higher interest and depreciation charges on account of capitalization of new assets affected the bottom line.
The Techno-economic parameters also exhibited improvement in Q2 with improvement in coke rate, CDI and BF productivity by 3%, 15%, 8% respectively over CPLY.
Speaking at the occasion, Chairman, SAIL, Shri. P.K. Singh said that, “Despite the unabated rise in coal prices, we are working on a holistic strategy to remain competitive by reducing our cost, faster ramping up of new facilities and aggressive marketing. In tandem with the India’s impressive economic growth among large economies, the domestic steel consumption is growing at a faster pace which coupled with growth oriented policies of the Government of India will see further improvements in future.”