NEW DELHI: Steel Authority of India Limited (SAIL) has announced its financial results for the third quarter (Q3) and nine-month (9M) period ending December 31, 2024.
Despite a challenging steel market, the company has reported an increase in sales volume and revenue from operations during Q3 FY25.
SAIL’s revenue from operations stood at ₹24,490 crore, marking a 5% increase year-on-year from ₹23,345 crore in Q3 FY24 but slightly lower than ₹24,675 crore in Q2 FY25.
Sales volume rose to 4.43 million tonnes, up from 3.81 million tonnes in the same quarter last year, while crude steel production was recorded at 4.63 million tonnes, marginally lower than 4.75 million tonnes in Q3 FY24.
Earnings before interest, tax, depreciation, and amortization (EBITDA) improved to ₹2,389 crore from ₹2,319 crore in Q3 FY24.
However, profit after tax (PAT) declined sharply to ₹126 crore, reflecting a 62% drop from ₹331 crore in Q3 FY24.
The consolidated net profit also witnessed a significant 66% decline, falling to ₹141.89 crore from ₹422.92 crore in the same quarter last year.
The EBITDA margin contracted to 8.3% from 9.2% in Q3 FY24, indicating higher input costs and pricing pressures.
For the nine-month period, crude steel production stood at 14.08 million tonnes, slightly down from 14.22 million tonnes in 9M FY24.
Revenue from operations declined to ₹73,162 crore from ₹77,417 crore in the corresponding period last year, while EBITDA dropped to ₹7,983 crore from ₹8,451 crore.
PAT for the period stood at ₹970 crore, a sharp decline from ₹1,722 crore in 9M FY24.
SAIL’s profit slump was primarily driven by lower steel prices and higher input costs, despite improved sales volume. On a sequential basis, PAT fell 84% from ₹897 crore in Q2 FY25.
Commenting on the results, SAIL Chairman Amarendu Prakash said, “In the face of a challenging steel market characterized by declining prices and an influx of cheap imports, SAIL has managed to achieve better EBITDA in Q3 FY25 compared to the corresponding period last year. We remain steadfast in our commitment to boost production and enhance cost efficiency while simultaneously exploring and adopting greener technologies.”
He further emphasized that appropriate government interventions could address the issue of cheap imports, while infrastructure development initiatives are expected to drive domestic steel demand.
