SAIL Q1 results: Net Profit drops 79% to Rs 804 cr, Revenue increases 16%

New Delhi: Steel Authority of India Limited (SAIL) posted its financial performance for the first quarter of the current financial year 2022-23 (Q1 FY 23). The company saw a growth of 16.4% in its revenue from operations in Q1 FY23 over the corresponding period last year. 

The State-owned company posted a fall in its consolidated net profit of 79 percent to Rs 804.50 crore during the June quarter. 

The first quarter of FY’23 saw twin challenges of higher input costs and subdued market demand, both global and domestic, impacting the performance of the company. SAIL also recorded the best ever Q1 production.

High cost of production due to increase in imported coking coal prices had an impact on the bottom-line of the company. The decline in global demand and prices for steel had a direct bearing on the domestic market and price realisation. Since peaking in April’22, the prices for steel have continuously remained under pressure during the quarter.

The Company, however, said that the construction and infrastructure projects have gained momentum which will boost the demand for steel products. The company is confident of improved performances in the second half of the current financial year with significant reduction in prices of imported coal and uptick in demand.