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Smooth SAIL
In a break from the past seven successive quarters of decline, Steel Authority of India (SAIL) posted 21 per cent (year-on-year) jump in revenue to ₹12,578 crore in the September 2016 quarter.
A 33 per cent rise in steel sale volumes to 3.6 million tonnes boosted revenue. This helped SAIL report operating profit of ₹111 crore in the latest September quarter, a sharp improvement from a loss of ₹930 crore, a year ago. This was SAIL’s second successive quarter of profit after the June 2016 quarter. The company had reported four consecutive quarters of loss until March 2016.
The operating profit (EBIDTA)per tonne of steel too showed drastic improvement. From losing ₹3,444 on every tonne sold a year back, SAIL made around ₹300 in the September 2016 quarter. Reduction in costs despite lower realisation made this possible. However, impacted by higher fixed costs, the company reported net loss of ₹731 crore in the latest quarter. This was, though, lower than the loss reported last year.
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