State-owned Steel Authority of India Limited (SAIL) has staged a turnaround by clocking a net profit during the financial year 2018-19 after three consecutive years of losses.
The country's largest steel making company posted profit after tax of Rs 2.178.82 crore in FY 19 as against a net loss of Rs 481.71 crore in FY 2017-18. At the same time, the turnover totalled Rs 66,267 crore, up 14 per cent from Rs 58,297 crore in the previous fiscal.
Intensive efforts on improving physical performance throughout the year in tandem with the market conditions made it possible to achieve higher volumes, improve the product-mix and increase the share of value-added steel.
"The entire SAIL collective worked in mission mode to achieve this turnaround," said SAIL Chairman Anil Kumar Chaudhary.
"Together we have done it and it has strengthened our resolve to perform better in coming times. We all are committed to put SAIL into a higher orbit of performance," he said in a statement.
Chaudhary said the company will put in even greater efforts to ramp-up production from its sophisticated mills while focussing on augmenting production of special and valued added steels and niche products.
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SAIL's operating margin grew by more than 100 per cent in FY 19 over the corresponding period of last year, indicating an overall improvement in the performance.
The production from new mills of SAIL plants has recorded improvement in FY'19, giving a wide product basket. A dedicated logistics set-up has been created by the company to smoothly handle the increased despatches from higher level of production.
In FY 19, SAIL had the highest ever production of 9.85 lakh tonnes of UTS-90 Rail.
In Q4 FY19, SAIL posted a net profit of Rs 468 crore. During this period, the earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 2,461 crore and the turnover was Rs 18,323 crore, a growth of 9 per cent year-on-year.
The Q4 FY19 recorded growth of 10 per cent, 8 per cent and 14 per cent in respect of production of hot metal, crude steel, and saleable steel respectively while sales grew at 13 per cent.
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