SAIL Q3 FY17 gross turnover grows by 25%

KOLKATA/NEW DELHI
9 Feb 2017

Steel Authority of India Ltd. (SAIL) registered an increase in total sales by 16% and 12.5% for the April-December (9M) period and Q3 of FY17 with 9.66 million tonnes (MT) and 3.27 MT of saleable steel respectively over corresponding period last year (CPLY). The Company also registered highest ever 9M saleable steel production at 10.2 MT witnessing a growth of 16.5% and 9.2% growth in Q3 FY17 over CPLY. The growth in production & sales is driven by an all round improvement strategy of the top management by strengthening the entire value chain. During the 9M period, exports volume considerably rose and more than tripled as compared to CPLY, which are keeping in line with the company’s conscious strategy to expand globally.
Owing to the improved sales volume across all products, SAIL’s gross turnover in Q3 FY17 was higher by 25.8% at Rs 12,490 Crores as compared to CPLY. Registering a positive EBIDTA for third straight quarter, the company recorded EBIDTA of Rs 26 Crores in Q3 FY17 as compared to (-) Rs 1052 Crores in Q3 FY16. The PAT for Q3 FY17 was (-) Rs 795 Crores as against (-) Rs 1481 Crores in CPLY. This 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.
Realizing the crucial challenges faced by the steel industry and rising domestic competition SAIL has already commenced the supply of long rails from its 1.2 MTPA new Universal rail mill, Bhilai. The Company is in its final leg of finishing balance modernization projects, ramping up production from new mills and achieving its rated capacity soon.
At the same time by adopting energy efficient technologies and cost effective production, the company has achieved improvements in its techno-economic parameters during both 9M and Q3 period (Coke rate, CDI and Blast Furnace Productivity by 3%, 14%, and 7% for 9M and by 4%, 23% and 2% for Q3) over CPLY. Also, in Q3 the best ever concast production at 2.94 MT with 8% growth over CPLY was achieved and expense per tonne of sales reduced by 7% over CPLY in 9M of FY17.
Speaking on the occasion, Chairman SAIL, P.K. Singh said that, ‘the management’s sustained endeavor in adopting proactive approach across all its operations has improved our performance. Although continuing to adopt well chalked out cost reduction strategies, sharp rise in prices of imported met coal during the third quarter impacted the margins. With improvement in the share of value added products like high tensile plates, long rails, CR coils and structurals in our product basket and intensifying our marketing approach we aim to improve our market share. Along with this a companywide communication exercise is also being undertaken by the management to strategically convey company priorities to all employees for creating a shared vision. With government’s developmental policies in infrastructure, construction and manufacturing sectors, we are confident that it will generate greater demand for steel in domestic market. (EOIC)