SAIL posts Rs 436 crore net profit in Q2

Domestic steel giant SAIL on Friday reported a consolidated net profit of Rs 436.52 crore for the second quarter ended September 30, mainly on account of higher income.

The company had posted Rs 285.92 crore net loss in the year-ago quarter, Steel Authority of India Ltd (SAIL) said in a BSE filing.

During the July-September period, the company's total consolidated income increased to Rs 17,097.57 crore, from Rs 14,282.17 crore in the corresponding quarter previous fiscal.

SAIL's expenses during the quarter were at Rs 16,733.63 crore as against Rs 14,803.10 crore a year ago.

On a standalone basis, the company posted a net profit of Rs 393.32 crore during the quarter.

It had registered a net loss of Rs 342.84 crore during the same quarter last year.

Its total standalone income rose to Rs 17,121.22 crore from Rs 14,286.18 crore in the same period last fiscal.

During the quarter, its expenses stood at Rs 16,733.29 crore compared to Rs 14,809.21 crore in the year-ago period.

The Covid-19 pandemic outbreak and measures to curtail it have caused significant disturbances and slow down of economic activities, SAIL said in the filing.

Consequently, the company's manufacturing operations had to be scaled down during the June quarter. Following the resumption of operations during the latter part of the first quarter, the company has operated at normal capacity in the quarter ended September 30, 2020.

"SAIL has registered profit in Q2 braving all odds and exhibiting substantial growth in the operational performance. The year began with unforeseeable challenges, which had engulfed the entire world. It was a time to foster synergy and channelize all our energy and determination to surmount the obstacles and prove our mettle," SAIL Chairman Anil Kumar Chaudhary said in a statement.

According to the company, the saleable steel production grew by 5 per cent to 3.752 million tonne (MT) in the September quarter over the same period last fiscal.

SAIL, under the Ministry of Steel, is the country's largest steel maker.