New Delhi, 14th November, 2019: Steel Authority of India Limited (SAIL) declared the results for the Second Quarter of the current Financial Year (Q2 FY’20) today. The Company posted a net loss of Rs 342.84 Crore in Q2 FY’20. Considering the weak market sentiments and global consumption trends during the last few months, the overall margin of the steelmaker was affected, similar to other domestic steel producers.Owing to the extended monsoon season and low demand from the core sectors, the domestic steel demand was also affected. Notwithstanding these, SAIL achieved its best ever Q2 Hot Metal and Crude Steel production during Q2 FY’20.
Shri Anil Kumar Chaudhary, Chairman, SAIL said on the occasion, “The second quarter was affected by a lot of factors both domestic and global. It is common knowledge that several steel consuming sectors including auto, infrastructure and manufacturing did not perform well in the said quarter. At the same time, the prices have also faced continuing downward pressure. This has reflected in the results”.
He further added, “During the period, the Company has undertaken several measures for cost reduction across the Organisation. The measures include improving operational efficiency through better techno-economic performances, better utilization of raw materials and improving revenue generation through other means. These efforts were supplemented with higher employee engagement and participation in cost control efforts. The company will continue to take further measures in the area of cost control in the coming quarters”.
Meanwhile, timely announcement of new corporate tax rates and a slew of measures for increasing infrastructure and allied demand for steel by the Government raise hope for thefuture. Its positive ripples will be reflecting in the coming quarters. The move for new corporate tax regime is expected to bring in investments in new projects from the freed up cash. The renewed thrust of the Government on investments and infrastructure projects, coupled with industry-friendly measures are likely to help in increasing steel demand in the second half of the Financial Year, signalling that the worst period may be over.