SAIL achieves 26% turnover growth; sales rise 9% in Q1

In the Q1FY18, Company bore an impact of 115 per cent higher price on account of imported coal and 25 per cent higher price on account of indigenous coal over CPLY, pushing down the overall profitability margin despite a 14 per cent higher Net Sales Realizations (NSR) over same quarter last year. The profit after tax (PAT) stood at Rs (–) 801 Crore for Q1FY18. During the quarter, due to Cyclone Debbie the supplies of coking coal from Australia were adversely impacted, resulting in lower production volumes of saleable steel. However, the techno-economic parameters showed improvements with respect to Coal Dust Injection (CDI), coke rate, blast furnace productivity and production through the more efficient continuous casting route.

Owing to improving market sentiments, the Company is rapidly ramping up its new mills towards the rated capacities. SAIL Management is also focusing on rigorous marketing initiatives so as to increase its market share for Company's new and enriched product basket including universal structural, rails, wire rods, plates etc.

Chairman, SAIL, P K Singh said that, "We are maintaining positive EBITDA inspite of the challenging situation in the steel sector, and that shows the collective resolve of the Company. With the imported coal availability stabilizing and focus on ramping up the new units, the situation will improve in coming quarters. We have drastically reduced production from inefficient units and are optimizing the coal blend in operations to reduce costs. These steps will surely translate into improved financials going forward." mpost

Steel exports doubled to 8.2 million tonnes (MT) and imports slashed by about one-third in 2016-17 on account of a slew of steps to safeguard domestic steel sector from onslaught of cheap imports especially from China, the Economic Survey said on Friday.

The rise in exports of steel may also wipe away the excess capacity built up in the steel sector, the part II of the Survey tabled in Parliament said.

"These steps (to safeguard industry) taken by the government have borne fruit. During 2016-17 imports of steel have declined, while exports of steel have doubled," the mid- term Survey said. Alloy imports dipped by 36.6 per cent to 7.4 MT in 2016- 17 as against 11.7 MT in the previous fiscal while exports doubled to 8.2 MT last fiscal over 4.1 MT in the corresponding year.

"It is interesting to note that Indian exports of steel have been growing amidst a stable exchange rate of the rupee. The rise in exports of steel may also wipe away the excess capacity built up in the steel sector," the Survey said.

Due to rise in demand for steel globally and slowdown in imports, domestic production of steel has risen by 11 per cent after accounting for the possible excess capacity in the sector, it said.

The domestic production of total finished steel in 2016- 17 has been 101.3 MT as compared to 91 MT in 2015-16.

Against the backdrop of China's recent economic slowdown, the global steel industry has faced major distress due to decline in global demand, including China's demand for steel, the survey said.

In addition, excess capacity in steel production led to dumping of steel by China, South Korea and Ukraine into Indian markets at low prices, it said.

The government notified the MIP of steel in February 2016 for a period of one year.