Steel Authority of India Witnessed Turnaround in Net Profit

SEATTLE (Scrap Monster): Steel Authority of India Ltd (SAIL)- the state-owned integrated steelmaker announced robust results for the quarterly period ended June 30, 2021. The company swung to net profit, compared to the same quarter a year before.

According to company press release, the net profit for the quarter totalled INR 3,897 crore during the quarter. This compares with a net loss of INR 1,226 crore in the quarter ending June 2020. The higher quarterly EBIT was mainly attributed to its Bokaro and Rourkela. These two facilities, along with other plants in Bhilai, Durgapur, IISCO and Salem too reported turnaround from negative EBIT to positive EBIT.

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The total income on a consolidated basis stood at INR 20,463 crore, significantly higher by 126% from INR 9,067.52 crore in the corresponding quarter a year before. On a sequential basis, the income recorded a decline by 12.12% from INR 23,284.89 crore. The net margins stood at 19.05%, compared to -13.53% in June ’20 quarter and 14.90% in Mar ’21 quarter, the press release said.

Soma Mondal, Chairman, SAIL said that the demand for steel products in the quarter did not witness the same momentum as in the sequential quarter. However, focused interventions in several areas of operations helped the company achieve the robust results, she added.