SAIL shares down nearly 2% in early trade after dismal Q1 results

Shares of the state-run Steel Authority of India Ltd (SAIL) declined nearly 2% in early trade on Friday, August 9, a day after the company posted dismal results for the first quarter of fiscal year 2024-25 (Q1FY25).

SAIL opened the day's trade in the red, with the scrip valuing at ₹136 apiece on the National Stock Exchange (NSE), down 1.1% as against the last closing price.

Minutes into the trade, the stock plunged to ₹134.9, which was 1.9% lower as against the previous session's close.

On the BSE as well, SAIL's shares traded up to 1.9% lower at ₹134.85 during the first hour of trading.

How SAIL performed in Q1

SAIL, which is among the country's top three steel manufacturing entities, on Thursday posted a 61.51% fall in consolidated net profit to ₹81.78 crore, mainly on account of reduced income.

It had reported a net profit of ₹212.48 crore during the April-June period of the preceding 2023-24 fiscal, the company said in an exchange filing.

The company's total income declined to ₹24,174.80 crore during the quarter from ₹24,822.83 crore a year ago. Its expenses were at ₹23,871.60 crore as against ₹24,598.06 crore in the year-ago period.

The standalone profit after tax nosedived to ₹10.68 crore from ₹150 crore in Q1FY24.

In a separate statement, the company said its crude steel production was at 4.67 million tonnes (MT) against 4.68 MT a year ago. Sales volume fell to 3.88 MT from 4.01 MT in the first quarter of FY24.

SAIL Chairman Amarendu Prakash said, "Domestic steel consumption continues to grow steadily, driven by both traditional and emerging sectors. Additionally, ongoing Government investments in the infrastructure sector, as announced in the recent budget, are expected to bolster growth.

"With a positive outlook for the domestic steel sector, SAIL is focused on increasing its production volumes. The challenges posed by cheaper imports are anticipated to be addressed appropriately in the future".