Indian state-owned steel producer Steel Authority of India Limited (SAIL) has announced its financial results for the first quarter of 2019-120 ended June 30.
Accordingly, in the first quarter, SAIL recorded a net profit of INR 688.4 million ($6.66 million) down from a net profit of INR 5.4 billion in the same quarter of the previous year. The company's net sales revenue amounted to INR 146.45 billion ($2.31 billion), down 6.9 percent year on year, amid economic slowdown and lower steel demand.
In the first quarter, SAIL’s finished steel sales remained almost stable at 3.25 million mt, while its finished steel production rose by 1.1 percent to 3.65 million mt, both year on year.
“With the government announcing planned investments in steel intensive sectors including infrastructure and construction, a positive impact can be expected for the industry for the rest of the financial year. Coupled with this, the company’s strategic priorities to ramp up volumes especially from the modernized units, improving product-mix and improving operational efficiencies lend a positive outlook to the company’s future. In spite of market challenges, the company has continued its profit streak over past seven quarters,” said Anil Kumar Chaudhary, chairman of SAIL.