Latest news with #SAIL
Economic Times
6 hours ago
- Business
- Economic Times
CAG points to inventory handling lapses at SAIL
The Comptroller and Auditor General (CAG) of India has flagged discrepancies in inventory handling practices of Steel Authority of India Limited (SAIL) from 2016 to to the auditor's report tabled in the Rajya Sabha on Tuesday, this led to loss of time and money at the public sector undertaking during this CAG found that faulty price fixation adopted by SAIL in the agreement for sale of blast furnace slag, a by-product of steel-making process, was detrimental to the financial interest of the company. Sale of slag at a lower rate resulted in inability to earn revenue of ₹441.40 crore between 2016 and 2023. "Market price of slag was between ₹500 and ₹1,220 per tonne during 2009-14, whereas the rate provided in the agreement was between ₹336.65 and ₹444.24 per tonne," the CAG said in a statement. The slag was provided by Bokaro Steel Plant during this period. Highlighting another anomaly, CAG said SAIL had not fixed any benchmark for inventory carrying cost per tonne of raw material, semi-finished material and finished goods. This is even though on an average, SAIL had an inventory of ₹21,698 crore from 2016-17 to 2022-23, which constitutes about 67% of its current assets. SAIL also failed to maintain stock levels of raw materials like iron ore, coke and sinter due to which blast furnace was put under off-blast state, resulting in inability to produce 932,000 tonnes of hot metal and earn potential revenue of ₹1,231.52 crore at Rourkela, Bokaro and Durgapur plants, the auditor to CAG, while all five integrated steel plants of SAIL have implemented SAP-ERP system, it was yet to be implemented in all units or offices of SAIL.
Time of India
6 hours ago
- Business
- Time of India
CAG points to inventory handling lapses at SAIL
The Comptroller and Auditor General (CAG) of India has flagged discrepancies in inventory handling practices of Steel Authority of India Limited (SAIL) from 2016 to 2023. According to the auditor's report tabled in the Rajya Sabha on Tuesday, this led to loss of time and money at the public sector undertaking during this period. Explore courses from Top Institutes in Please select course: Select a Course Category Finance Cybersecurity Data Analytics Public Policy Degree Technology Healthcare healthcare Product Management PGDM Others others Data Science Data Science Digital Marketing MCA Project Management MBA Leadership Operations Management Management CXO Artificial Intelligence Design Thinking Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Fintech & Blockchain India Starts on undefined Get Details Skills you'll gain: Duration: 9 Months IIM Calcutta SEPO - IIMC CFO India Starts on undefined Get Details The CAG found that faulty price fixation adopted by SAIL in the agreement for sale of blast furnace slag, a by-product of steel-making process, was detrimental to the financial interest of the company. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Senior Living Homes in Jigatala May Surprise You Senior Living | Search Ads Undo Sale of slag at a lower rate resulted in inability to earn revenue of ₹441.40 crore between 2016 and 2023. "Market price of slag was between ₹500 and ₹1,220 per tonne during 2009-14, whereas the rate provided in the agreement was between ₹336.65 and ₹444.24 per tonne," the CAG said in a statement. The slag was provided by Bokaro Steel Plant during this period. Highlighting another anomaly, CAG said SAIL had not fixed any benchmark for inventory carrying cost per tonne of raw material, semi-finished material and finished goods. This is even though on an average, SAIL had an inventory of ₹21,698 crore from 2016-17 to 2022-23, which constitutes about 67% of its current assets. Live Events SAIL also failed to maintain stock levels of raw materials like iron ore, coke and sinter due to which blast furnace was put under off-blast state, resulting in inability to produce 932,000 tonnes of hot metal and earn potential revenue of ₹1,231.52 crore at Rourkela, Bokaro and Durgapur plants, the auditor noted. According to CAG, while all five integrated steel plants of SAIL have implemented SAP-ERP system, it was yet to be implemented in all units or offices of SAIL.
Time of India
10 hours ago
- Business
- Time of India
CAG flags financial loss due to SAIL's poor inventory management from 2016-23
According to the CAG, while all the five integrated steel plants of SAIL have implemented SAP-ERP system, the same was yet to be implemented in all units or offices of SAIL. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Comptroller and Auditor General ( CAG ) of India has flagged discrepancies in inventory handling practices of Steel Authority of India Limited SAIL ) from 2016-2023. According to the auditor's report tabled in the Rajya Sabha on Tuesday, this led to loss of time and money at the public sector undertaking during this found that faulty price fixation adopted by SAIL in the agreement for sale of Blast Furnace slag (a byproduct of steel making) was detrimental to the financial interest of the Company. Sale of slag at a lower rate resulted in inability to earn revenue of Rs 441.40 crore during 2015 to 2023.'Market price of slag was between Rs 500 and Rs 1,220 per tonne during 2009-14, whereas the rate provided in the agreement was between Rs 336.65 and Rs 444.24 per tonne,' a CAG statement said. The slag in question was provided by Bokaro Steel Plant during this another anomaly, India's supreme audit institution said SAIL had not fixed any benchmark for inventory carrying cost per tonne of raw material, semi-finished material and finished goods. This is even though on an average, SAIL had an inventory of Rs 21,698 crore during 2016-17 to 2022-23 which constitutes about 67 per cent of its current also failed to maintain stock levels of raw materials like iron ore, coke, sinter due to which Blast Furnace was put under off-blast state resulting in inability to produce Hot Metal of 9.32 lakh tonnes and to earn potential revenue of Rs 1,231.52 crore at Rourkela, Bokaro and Durgapur Steel Plants, the auditor to the CAG, while all the five integrated steel plants of SAIL have implemented SAP-ERP system, the same was yet to be implemented in all units or offices of SAIL. 'The IT systems in each Plant were running in isolation which led to various control issues like non-availability of real time data on stock of raw materials, absence of centralised vendor database and manual intervention in SAP-ERP system,' the auditor these, the stock verification report was not prepared as prescribed in the guidelines on stock verification of the Central Marketing Organisation. 'In 46 out of 49 stockyards, stock verification was not conducted on half yearly basis, as prescribed in the policy, in one or more years during 2016-17 to 2022-23,' the CAG said while adding in 10 stockyards, stock verification had not been conducted at all during this period.
News18
2 days ago
- Business
- News18
SAIL Shares Fall 5% As Q1 Profit, Revenue Drop Sequentially; What Should Investors Do Now?
Last Updated: Shares of Steel Authority of India Ltd (SAIL) fell nearly 5 per cent on Monday after the company reported Q1 results SAIL SAIL Share Price: Shares of Steel Authority of India Ltd (SAIL) fell nearly 5 per cent on Monday after the company reported a sequential decline in net profit and revenue for the June quarter of the current financial year (Q1FY26). The PSU maharatna steel maker's stock fell as much as 4.82 per cent during the day to ₹124.3 per share, the biggest intraday fall since April 7 this year. The stock pared some losses to trade 4 per cent lower at Rs ₹125.4 apiece, compared to a 0.14 per cent decline in Nifty 50 as of 11:50 AM. Steel Authority of India Ltd reported a net profit of Rs 744.58 crore for the first quarter of FY26, marking a dramatic year-on-year (YoY) jump from Rs 81.78 crore in Q1 FY25. However, the figure represents a 40.5% sequential decline compared to the Rs 1,251 crore net profit posted in Q4 FY25. What Should Investors Do? Despite the YoY profit surge, Morgan Stanley has maintained an 'underweight' rating on the PSU stock and slashed its target price by nearly 20% to Rs 105, down from its earlier projection. The revised target represents a 19.84% drop from the stock's closing price on Friday, July 25. The brokerage cited that SAIL's EBITDA for the quarter was 16% below market consensus, and adjusted EBITDA missed estimates by 22%, reflecting a weaker-than-expected operating performance. view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
2 days ago
- Business
- Business Standard
SAIL shares slide 5% as Q1 profit, revenue drop sequentially; details here
Shares of Steel Authority of India Ltd (SAIL) fell nearly 5 per cent on Monday after the company reported a sequential decline in net profit and revenue for the June quarter of the current financial year (Q1FY26). The public sector steel maker's stock fell as much as 4.82 per cent during the day to ₹124.3 per share, the biggest intraday fall since April 7 this year. The stock pared some losses to trade 4 per cent lower at ₹125.4 apiece, compared to a 0.14 per cent decline in Nifty 50 as of 11:50 AM. Shares of the company fell for the second straight session on Monday and have fallen nearly 10 per cent from their recent July highs. The counter has risen 10.5 per cent this year, compared to a 5 per cent advance in the benchmark Nifty 50. SAIL has a total market capitalisation of ₹51,791.36 crore. Check List of Q1 results today SAIL Q1 results The company reported a net profit of ₹744.6 crore for Q1FY26, down from ₹1,251 crore in the previous quarter (Q4FY25). The sequential decline came despite a sharp year-on-year (Y-o-Y) jump of over 810 per cent from ₹81.8 crore in the same period last year, largely aided by a low base and an exceptional item of ₹311.76 crore. SAIL's revenue from operations stood at ₹25,921.8 crore for Q1 FY26, registering a Y-o-Y growth of 8 per cent from ₹23,997.8 crore in Q1 FY25. However, revenue declined by 12 per cent sequentially from ₹29,316.1 crore in the previous quarter. On the expenditure front, SAIL spent ₹25,189.19 crore, up 5.5 per cent from ₹23,871.60 crore in the year-ago period. 'SAIL's Q1FY26 performance shows improved operational efficiency, better cash flow and strong growth in sales volume in the domestic market, supported by government safeguard duties,' Chairman and Managing Director, Amarendu Prakash, said. "Even amidst fluctuating global dynamics, with rising domestic consumption, expanding steel capacity and safeguard duty support from the government, we continue to deliver high-quality steel to all steel-consuming sectors. Our cost optimisation measures and unwavering commitment to enhancing stakeholder value remain central to our journey," Prakash added. About SAIL The company is a fully integrated iron and steel maker producing both basic and special steels for domestic construction, engineering, power, railway, automotive and defence industries and for sale in export markets. They are also among the seven Maharatnas of the country's Central Public Sector Enterprises. The company manufactures and sells a broad range of steel products, including hot and cold rolled sheets and coils, galvanised sheets, electrical sheets structural railway products, plates, bars and rods, stainless steel and other alloy steels.
