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SAIL reports Rs 343 cr loss in Dec qtr/

Feb 15th, 2020 7:18 pm | By | Category: LATEST NEWS

Kolkata: Steel Authority of India, the largest state-owned domestic steel company plunged into a net loss of Rs 429.62 crore in the quarter ended December 31, 2019 on the back of lower realisations against a net profit of Rs 616.30 crore in the same period a year earlier.

The company’s revenue from operations went up by around 5% to Rs 16,728 crore up from Rs 15,910.45 crore in the previous corresponding period, according to a notification sent to the BSE on Friday. In an official statement SAIL said it has been able to achieve higher revenue by pushing for higher volumes which saw production (3.9 million tonne) and sales (4.1 million tonne) grow by 3% and 26% over thd previous corresponding period respectively.
“However, the reduction in prices, which has hurt the financial performance of all major domestic steel producers during the quarter, impacted the profitability of SAIL as well with the company posting a net loss of Rs 429.62 crore in Q3FY20,” the statement added.
Commenting on the performance, Anil Kumar Chaudhary, chairman, SAIL said: “The quarter had been quite challenging for the entire industry in terms of subdued realisations thereby impacting the financial performance of all major producers.

The company is enriching its product basket with more focus on cost minimization to improve its bottom-line, he added.

“Despite lower steel prices amidst stiff competition during the third quarter, we could achieve significant growth in sales and saleable steel production,” he said, adding, “with recent improvement in market conditions and efforts towards cost reduction, we are hopeful of doing better in the fourth quarter.”

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