New Delhi: Steel Authority of India Limited (SAIL) posted 16.4% jump in its revenue in the first quarter of this fiscal vis-à-vis its financial performance in the same quarter in 2021-22. So far, the public sector giant recorded the best ever Q1 production, said a release issued on behalf of the company today.
The first quarter of FY’23 saw twin challenges of higher input costs and subdued market demand, both global and domestic, impacting the performance of the company, said a SAIL statement. High cost of production due to increase in imported coking coal prices had an impact on the bottom-line of the company. The decline in global demand and prices for steel had a direct bearing on the domestic market and price realisation. Since peaking in April’22, the prices for steel have continuously remained under pressure during the quarter.
The company, however, said that the construction and infrastructure projects have gained momentum, which will boost the demand for steel products. The company is confident of improved performances in the second half of the current financial year with significant reduction in prices of imported coal and uptick in demand.
As per the financial reports, SAIL’s profit after tax was recorded ₹776 crore in the Q1 of the year 2022-23 as compared to ₹3,850 crore in the same period last year. The production of crude steel has risen to 4.33 million tonne as against 3.77 million tonne last year. The revenue operation has increased to ₹24,029 crore as compared to ₹20,624 crore in the Q1 of the last fiscal. The net sale value too has dipped to 3.15 million tonne vis-à-vis 3.33 million tonne last year.