SAIL suffers net loss of Rs.1230.93 cr in Q4
The Dollar Business Bureau
State-owned steel maker SAIL on Monday said that it posted a standalone net loss of Rs.1,230.93 crore in the fourth quarter of the last fiscal, due to tough market conditions and drop in sales realisation.
The largest domestic steel maker had recorded a net profit of Rs.334.22 crore in the same period a year ago.
The overall standalone revenue of the company dropped by 2 percent to Rs.11,371.66 crore in the quarter ended March 31 2016, compared to Rs.11,590.55 crore during the same period of 2014-15, the steel maker said in a regulatory filing.
The loss after tax, during the January-March quarter, was due to “19 percent drop in net sales realisation,” the PSU said in a statement.
P K Singh, Chairman, SAIL said that the tough conditions, which the domestic steel industry is coping has received some relief, after the Government had introduced conducive policy measures in the form of MIP (minimum import price) and Safeguard duty.
SAIL recorded better figures in the fourth quarter of 2015-16 and is aiming to finish the balance modernisation and growth by focussing on methods of energy saving, improving its product mix and starting consumer-centric processes, Singh added.
The steel major witnessed a huge standalone net loss of Rs.1,528.7 crore in the quarter of October-December 2015-16, on account of lower sales due to "massive surge in low-priced steel imports" from countries such as China. The company earned a profit of Rs.579.1 crore in the same period in the previous financial year.
SAIL recorded an overall improvement in performance in the fourth quarter, witnessing record sales of 3.79 million tonnes, the highest ever by the company in a quarter and an increase of 20 percent against the corresponding period, the company said.
For the entire fiscal of 2015-16, the net loss of SAIL stood at Rs.4,137.25 crore, compared to a net profit of Rs.2,092.68 crore in the previous fiscal, due to a decline in NSR, high interest and depreciation rates, it said.
The company’s overall income also dropped to Rs.39,086.24 crore in the last fiscal against Rs.45,730.36 crore during the previous year.