/SAIL Q3 results: Reports net profit of Rs 1,468 crore

SAIL Q3 results: Reports net profit of Rs 1,468 crore

State-owned on Friday reported a net profit of Rs 1,468.20 crore during the December quarter of FY 21, as against a net loss of Rs 343.57 crore during the same period last year, mainly on account of increased steel demand.

“The worst is behind us. SAIL has shown overall improvement during the current financial year despite all the challenges…As we look ahead, we are confident of improving the performance further in the remaining period of the financial year,” said the newly-appointed chairman of SAIL, Soma Mondal in a statement on Friday.

Company’s revenue from operations increased 20% to Rs 19,835 crore during the December quarter, while total expenses amounted to Rs 16,406 crore, a reduction of around 5.2% year-on-year.

The company in its BSE Filing said that revenue from operations include sales to Government agencies for Rs 1,675 crore for the quarter ended December 2020 and Rs 5,370 crore for period from 1st of April 2020 to 31st December which is recognized on provisional contract basis.

The Board of Directors of SAIL have also declared Interim Dividend of Rs. 1 per equity share of Rs 10 each (10% of the paid up equity share capital of the company). The record date for the purpose of payment of interim Dividend is 6th February, 2021.

During the quarter under review, hot metal production was recorded at 4.8 million tonne, growth of 12% year-on-year and saleable steel production at 4.15 mt, growth of 6% yoy. Total sales including domestic and exports were at 4.15 mt, growth of around 1% yoy.

“In sectors like infrastructure, construction, manufacturing and automobiles, there has been a relatively rapid recovery. As these sectors are major steel consumers, the recovery in them has helped the up-rise in demand in the domestic steel sector,” the company said in a statement.

The company’s earnings before interest, taxes, depreciation and amortization was at Rs 5,294 crore, as against an Ebitda of Rs 1,186 crore.

“The concerted thrust of the government to strengthen the infrastructure of the country has helped the domestic steel sector witness healthy demand generation,” the company’s statement said.

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