Public sector steel major SAIL reported a standalone net profit of Rs 834 crore for the July-Sept quarter of the ongoing fiscal, which stands at a 32.7 per cent fall from the corresponding figure of Rs 1,241 crore in the same quarter of FY 2023-24.
The revenue was dented by the inflow of cheap Chinese imports that ultimately eroded the price of the steel.
SAIL's sales declined 17 percent to Rs 24,675 crore in the second quarter from Rs 29,714 crore in the same period of the previous year.
The EBITDA of the company declined to Rs 3,174 crore in the second quarter from Rs 4,043 crore in the same period last year.
The company's performance in the quarter ended December so far has improved compared with Q1 FY'25 of the current financial year, according to a SAIL statement. Revenue from operations, EBITDA, and sales volume improved year on year in Q2 FY'25 against Q1 FY'25.
A review of the company's report for Q2 FY'25 does reveal lower performance compared with the same period last year, Q2 FY'24, as due to cheaper imports, the prices of product came down.
As reflected on the results, SAIL chairman Amarendu Prakash said, "We anticipate better performance in H2 FY'25 compared with H1 FY'25, which had a cocktail of challenges." "Along with the expected downtrend of steel imports and hike in GDP & capital expenditures, the second half might perform better.".
Steel Authority of India Ltd will spend Rs 6,500 crore on capex in the current financial year as part of its Rs 1 lakh crore investment plan over the next few years, Prakash said in an interview earlier this year. SAIL has regular capex in maintaining facilities as well as debottlenecking exercises, he added. Most of the capex expansion to be invested by 2030 will start flowing from FY26.
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