Steel Authority of India Limited (SAIL) shares are poised for scrutiny on February 13 after the state-owned steel maker disclosed a consolidated net profit of Rs 423 crore for the October-December period of FY24. This figure represents a 22 percent decrease compared to the same quarter in the previous fiscal year, primarily due to a high base effect. In Q3FY23, the company had recorded an exceptional gain of Rs 298 crore. Additionally, revenue from operations experienced a 6.8 percent year-on-year decline, amounting to Rs 23,349 crore for the quarter.
On February 12, SAIL shares witnessed a notable decline of over 7.63 percent, settling at Rs 123.45 on the NSE. Despite this, Chairman Amarendu Prakash highlighted the company’s consistent efforts to increase volumes, which positively impacted its financial performance, despite significant price realization declines during the quarter.
Revenue from SAIL’s Bhilai plant stood at approximately Rs 6,500 crore, down 12.1 percent, while revenues from its Rourkela and Bokaro units were reported at Rs 5,863.3 crore and Rs 6,003.6 crore, respectively.
In terms of production, crude steel output for the quarter reached 4.75 million tonnes compared to 4.71 million tonnes in the previous year. However, sales volume saw a decrease to 3.81 million tonnes from 4.15 million tonnes.
The company also announced an interim dividend of Re 1 per equity share of Rs 10 each, with the record date set for February 20.
With the government holding approximately 65 percent of SAIL shares, while foreign institutional investors (FIIs) and domestic institutional investors (DIIs) hold 4.3 percent and 15.5 percent, respectively, the company remains a significant player in the steel industry. Notably, Life Insurance Corporation of India owns 9.2 percent of the DIIs’ shareholding in the company, as of the quarter ended December 2023. The remaining 15.2 percent stake in SAIL is held by the public.
Over the past six months, SAIL shares have exhibited strong growth, surging over 40 percent compared to a 12 percent rise in the frontline index Nifty 50 during the same period. As investors digest the latest financial results and outlook for the company, market participants will closely monitor SAIL’s performance in the coming days.
