Latest news with #SteelAuthorityofIndiaLtd
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Business Standard
2 days ago
- Business
- Business Standard
CAG pulls up steel maker SAIL for over-consumption of imported coal
Steel maker SAIL consumed imported coal more than the permitted levels between 2016 and 2023, resulting in additional expenditure to the extent of Rs 2,539.68 crore, a CAG report has said. CAG also flagged that Steel Authority of India Ltd (SAIL) had not fixed any benchmark for inventory carrying cost per tonne of raw material, semi-finished material and finished goods. This happened despite the fact that on an average, SAIL had an inventory of Rs 21,698 crore during 2016-17 to 2022-23, constituting about 67 per cent of its current assets, the CAG report said. As per the report titled 'Inventory Management in SAIL', the company's "steel plants consumed imported coal more than the norms fixed by the management". "Higher consumption of imported coal which was costlier than the indigenous coal resulted in potential additional expenditure to the extent of Rs 2,539.68 crore during 2016-2023," the Comptroller and Auditor General (CAG) report said. The report of the CAG of India on Performance Audit on 'Inventory Management in SAIL' (Audit Report No. 10 of 2025) was presented in Parliament on Tuesday. SAIL 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, as per the report. SAIL could not maintain the norms for non-moving inventory, it said, adding that total non-moving inventory of stores and spares at SAIL plants increased from Rs 137.40 crore in 2016-17 to Rs 212.57 crore in 2022-23, registering an increase of Rs 75.17 crore (55 per cent). Excess procurement of inventory without considering the requirement resulted in blocking-up of capital in non-moving items. SAIL plants took more days than the stipulated time of six months (186 days) between raising of indent by the department concerned and placement of purchase order in 9.71 per cent cases during 2016-2023. Five integrated steel plants of SAIL could produce 106.15 million tonnes (89 per cent) of the production target of 119.66 million tonne of saleable steel envisaged in the annual business plan for 2016-2023. The capacity utilisation by these steel plants was between 77 per cent (2020-21) and 89 per cent (2022-23). As against total production of 106.15 million tonne of saleable steel and orders booked by central marketing organisation for 121.86 million tonne, despatches from plants were only 93.75 million tonne, i.e. 77 per cent of orders booked, the report said. Lower despatch of materials than the requirement of customers led to delay in liquidation of stock and increase in inventory carrying cost on the stock lying at steel plants, it added.
News18
4 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
4 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.
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Business Standard
6 days ago
- Business
- Business Standard
SAIL Q1FY26 result: Profit soars 810% YoY to ₹744.6 cr, down 40% QoQ
Steel Authority of India Ltd (SAIL) on Friday reported a net profit of ₹744.6 crore for the first quarter of financial year 2025–26 (Q1FY26), marking a sharp year-on-year (Y-o-Y) rise of over 810 per cent from ₹81.8 crore in the same period last year. '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,' said Amarendu Prakash, chairman and managing director. The percentage increase, however, was also aided by a sizeable exceptional item booking of ₹311.76 crore in the year-ago quarter. On a sequential basis, profit fell from ₹1,251 crore reported in the previous quarter (Q4FY25). SAIL's revenue from operations stood at ₹25,921.8 crore for Q1 FY26, registering a year-on-year 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% from ₹23,871.60 crore in the year-ago period, the company said in a BSE filing. "Even amidst fluctuating global dynamics, with rising domestic consumption, expanding steel capacity and safeguard duty support from 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 Shares of SAIL closed at ₹130.65 apiece on the BSE on Friday. SAIL Q1 FY26 result highlights
Time of India
6 days ago
- Business
- Time of India
SAIL Q1 Results: Net profit zooms to Rs 745 crore
country's largest steel maker, on Friday reported a multi-fold rise in consolidated net profit at Rs 744.58 crore in the quarter ended June 2025 on the back of improved operational efficiency, better cash flow and strong growth in sales volume. The company had posted a consolidated net profit of Rs 81.78 crore in the year-ago period, Steel Authority of India Ltd (SAIL) said in a filing to BSE. Explore courses from Top Institutes in Please select course: Select a Course Category others Digital Marketing Public Policy Healthcare Management Operations Management Cybersecurity Data Science MCA Degree Project Management healthcare MBA Design Thinking Technology Finance Others Artificial Intelligence Data Analytics Product Management Leadership Data Science CXO Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT - ISB Cybersecurity for Leaders Program India Starts on undefined Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Play War Thunder now for free War Thunder Play Now Undo The consolidated income of the company during April-June period rose to Rs 26,083.90 crore compared to Rs 24,174.80 crore in the corresponding quarter of previous fiscal. Total expenses during the quarter rose to Rs 25,189.19 crore from Rs 23,871.60 crore in the year-ago period, the filing said. The company's Chairman and Managing Director Amarendu Prakash said: "SAIL's Q1 FY26 performance shows improved operational efficiency, better cash flow and strong growth in sales volume in domestic market, supported by government safeguard duties. Live Events "Even amidst fluctuating global dynamics, with rising domestic consumption, expanding steel capacity and safeguard duty support from 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." Steel Authority of India Ltd is a Maharatna public sector undertaking and a leading steel-making company in the country.
