Steel Authority of India Limited Targets Massive Net Debt Reduction

SEATTLE (Scrap Monster): The New Delhi-headquartered leading state-run steelmaker, Steel Authority of India Limited (SAIL) aims significant reduction in net debt during the current fiscal.

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The steel manufacturer aims to bring down its net debt to levels of around INR 15,000 to 20,000 crore in the fiscal, provided the steel prices and demand continue to maintain current levels, said Soma Mondal, Chairman, SAIL. Of late, the long products have been witnessing price improvement, whereas the prices of flat products have stabilized. It must be noted that the company had reported a net debt of around INR 30,000 crore by end-June this year and INR 35,350 crore by the end of previous fiscal year.

The company had earlier planned for capital expenditure of up to INR 8,000 crore for the current financial year.

SAIL reported net profit for the quarterly period ended June 30, 2021 of INR 3,897 crore. This compares with a net loss of INR 1,226 crore in the corresponding quarter a year before. The Bhilai Steel Plant contributed around 24% of SAIL’s total revenue. The total income on a consolidated basis stood at INR 20,463 crore. Also, the net margins for the quarter were 19.05%.