Indian state-owned steelmaker Steel Authority of India Limited (SAIL) has announced that in the first quarter ended June 30 of the financial year 2015-16 it recorded a net loss of INR 3.21 billion ($49.4 million), compared to a net profit of INR 5.3 billion in same period of the previous financial year. In the given period, SAIL's gross turnover amounted to INR 105.5 billion ($1.7 billion), falling 15.7 percent year on year. The company said that, apart from lower net sales realization, the increase in royalty on iron ore from September 1, 2014, and the increase in power costs have also added to its losses.
In the given quarter, SAIL’s crude steel, finished steel and pig iron outputs increased by six percent, 11 percent and 14 percent respectively, compared to the same quarter of the previous financial year.
According to SAIL, the government’s support to the domestic steel industry in the form of the upward revision of customs duty on imports is a step in the right direction and the industry is expected to get some support in ensuring a stable price regimen. “The company is following a strategy where, in addition to increasing volumes and focusing on cost reduction, the thrust will be on maximizing production of value-added products to get the benefit of increased infrastructure spending in the near future,” SAIL chairman Shri Rakesh Singh stated.