Steel Authority of India narrows loss to Rs 795 crore
Steel Authority of India (SAIL) on Thursday narrowed its loss to R795 crore for the October-December quarter of the current fiscal compared to a net loss of R1,481 crore a year ago. The loss, largely attributed by the company to higher coking coal prices, is for the seventh quarter in a row. SAIL had plunged into the red for the first time in 13 years in April-June of last fiscal.
“This (the loss in Q3 FY17) is notwithstanding the high global met coal prices during the quarter impacting the margins sharply along with rising interest and depreciation charges dampening the financial performance,” SAIL said in a statement.
Finance cost of the company rose to R611 crore during the quarter from R599 crore a year earlier. It consumed raw material worth R5,814 crore from R4,157 crore. Total expenses rose by 13.37% to R13,332 crore from R11,758 crore a year earlier. However, buoyed by a 16% rise in sales volume, its gross turnover in Q3 grew by 25.8% to R12,490 core over R9,928 crore a year ago. The earnings before interest, tax, depreciation and amortisation had been positive at R26 crore compared to a negative of R1,052 crore a year earlier, the company said.