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SAIL rebounds on bargain hunting

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Capital Market
Last Updated : Apr 23 2020 | 11:04 AM IST

Steel Authority of India (SAIL) rose 3.42% to Rs 27.20 amid bargain hunting after a recent slide.

Shares of the PSU steel major lost 6.89% in three sessions to end at Rs 26.35 on 22 April 2020, from its recent closing high of Rs 28.30 recorded on 17 April 2020.

Meanwhile, Steel Authority of India (SAIL) announced on 22 April 2020, that it has become the leader of crude steel production in India in FY 2019-20 (FY20). SAIL produced 16.15 million tonnes (MT) of crude steel during FY20 and it was the highest among all other steel producers in the country.

During the FY20, SAIL has also achieved the best ever annual sales of 14.5 MT with a growth of 2.8% over the corresponding period last year (FY 2018-19). The company's strategies to expand its market portfolio also yielded the highest ever exports of 1.18 million tonnes during FY20 which is a 54% growth over corresponding period last year (CPLY).

SAIL has continued the streak of sales growth consistently, especially from the third quarter onward where the company registered a growth of 26% in sales in the Q3 December 2019. The company posted increase in sales during November 2019, December 2019, January 2020 by 36%, 47% and 35% respectively over CPLY.

The company's chairman, Anil Kumar Chaudhary, said, "SAIL has been continuously focusing on ramping up its steel production from the new units, which came up under modernization along with optimally utilizing the older units. The concerted efforts to increase volumes have resulted in the company becoming the largest domestic steel producer in FY20. The company's well-coordinated production strategies leveraging augmented production capacities, which were installed under the modernization have started to fructify. In the near future, as the nation comes out victorious in the fight against coronavirus, the market will definitely show green shoots of steel consumption and SAIL is fully geared up to cater to the steel demands of the nation."

The company reported a consolidated net loss stood at Rs 343.57 crore in Q3 December 2019 as against a net profit of Rs 653.93 crore reported in Q3 December 2018. Net sales rose 4.4% year-on-year (Y-o-Y) to Rs 16,542.48 crore in Q3 December 2019.

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SAIL is engaged in the manufacturing of flat products, such as hot rolled (HR) coils, HR plates, cold rolled (CR) coils, pipes and electric sheets, and long products, such as thermo mechanically treated (TMT) bars and wire rods.

The Government of India held 75% stake in the company as on 31 December 2019.

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First Published: Apr 23 2020 | 10:23 AM IST

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