SAIL reduces net loss to Rs 539 cr in Q2

Steel Authority of India Ltd (SAIL) on Thursday said it posted a net loss of Rs 539 crore in the quarter ended September 30, as against a loss of Rs 732 crore in the corresponding period last year.

The steel maker registered 21 per cent growth in net sales revenue which stood at Rs 13,442 crore for the second quarter of the current fiscal as compared to Rs 11,080 crore in the year-ago period.

"SAIL's emphasis on increasing the share of high value products in its basket has begun to positively influence revenue earnings. The company recorded 4 per cent growth in domestic sales in April-September period with 21 per cent improvement in sales of high value products like cold rolled and galvanised products," it said.

The steel producer also said despite improved sales revenue, earnings were impacted by huge rise in imported coal price, which partially negated the higher accruals.

"In order to neutralise the rise in input costs, the company is continually ramping up production from new facilities.

"Simultaneously, it is optimising the utilisation of its finishing facilities to increase the high value product offerings for better market realisation. Specific branding of products from the new mills is also one of the steps towards this," the state-run company said in a statement.

The company registered the highest ever quarterly saleable steel production at 3.659 million tonnes, surpassing the previous best of 3.626 mt achieved in the last quarter of 2016-17, with a growth of five per cent over corresponding period last year and 14 per cent over preceding quarter in the current financial year.

Reiterating the need to change product mix to make way for more value added and differentiated products, Chairman P.K. Singh said: "Our focus on reducing operating cost of assets, prudent finance management, efficient production process and increased share of value added and branded products is beginning to show results. The products from our modernised mills will continue to claim a large share of steel usage in several national infrastructure projects."

In line with the government's strategies for improving infrastructure, it is aiming to supply large quantities of steel in prestigious projects including Sagarmala, upcoming Bharatmala project and railway expansion.

--IANS

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