SAIL reports Q2 loss of Rs 539 crore
Steel Authority of India Ltd. posted a net loss of Rs 539 crore in Q2FY18 as against a net loss of Rs 732 crore in Q2FY17. The company registered a 21% growth in net sales revenue which stood at Rs 13,442 crore for the second quarter of FY17-18 (Q2FY18) as against Rs 11,080 crore in Q2FY17 with its emphasis on increasing share of high value products leading to higher revenues.
SAIL recorded 4% growth in domestic sales in H1FY18 (Apr-Sept’17) with 21% improvement in sales of high value products like Cold Rolled and galvanized products. There has also been a 30% improvement in sales of railway products during H1 FY18.
The company posted a cash profit pre-depreciation and exceptional items of Rs 323 crore in Q2FY18, an official statement said. SAIL’s earnings before interest, tax, depreciation and amortization (EBITDA) margin to net sales revenue ratio stands at 7.1% in Q2FY18 an improvement against the ratio of 1.7% in the previous corresponding period.
Despite improved sales revenue, earnings were impacted by a rise in imported coal prices, which partially offset the higher accruals. The company said in order to neutralise the input cost hike, it is continually ramping up production from new facilities.