SAIL July-September Profit Falls 49% on Lower Steel Prices; Revenue Rises on Strong Sales

State-owned Steel Authority of India Ltd. (SAIL) reported a 49% fall in net profit for the September quarter to ₹4.27 billion, hit by lower steel prices and realisations, and a one-time cost of ₹3.38 billion from an increase in employee gratuity limits.

Despite the profit drop, revenue from operations rose 8% year on year to ₹267.04 billion, supported by higher sales volumes and lower raw material costs. The company said this marked its strongest on-year revenue growth in eight quarters.

Sequentially, net profit declined 38%, while revenue was up 3%. Sales volume during the quarter rose to 4.9 million tonnes, compared with 4.1 million tonnes a year earlier and 4.6 million tonnes in the June quarter. Crude steel production fell to 4.6 million tonnes from 4.8 million tonnes a year ago, but saleable steel output rose to 4.9 million tonnes.

EBITDA fell 11% year on year to ₹28.29 billion, while total expenditure increased 10% to ₹261.16 billion. Depreciation and amortisation expenses rose 11% to ₹14.53 billion, and other expenses were up 7% to ₹78.67 billion. The cost of materials consumed dropped 15% to ₹103.73 billion.

For the April–September period, SAIL’s net profit rose 32% to ₹11.12 billion, and revenue from operations increased 8% to ₹526.25 billion. Crude steel production was steady at 9.50 million tonnes, while sales rose to 9.46 million tonnes. EBITDA for the period increased 3% to ₹57.54 billion.