A significant drop expected in imported coal prices
Construction and infrastructure projects have gained momentum which will boost the demand for steel products, said Steel Authority of India Limited (SAIL), expressing confident of improved performances in the second half of the current financial year.
SAIL expects a significant reduction in prices of imported coal and uptick in demand.
SAIL posted its financial performance for the first quarter of the current financial year 2022-23 (Q1 FY 23).
The company’s revenue from operations in Q1 FY23 was Rs.24,029 crore, up from Rs.20.642 in the quarter a year ago.
SAIL also recorded the best ever Q1 production. Crude steel production was 4.33 million tonnes in Q1 22-23, up from 3.77 million tonnes in Q1 21-22.
The first quarter of FY’23 saw twin challenges of higher input costs and subdued market demand, both global and domestic, impacting the performance of the company.
High cost of production due to increase in imported coking coal prices had an impact on the bottom-line of the company. Profit after tax was Rs.776 crore in Q1 22-23, a sharp decline from Rs.3,850 crore for the first quarter a year ago.
The decline in global demand and prices for steel had a direct bearing on the domestic market and price realisation, SAIL said on 11 Aug 2022.
Since peaking in April 2022, the prices for steel have continuously remained under pressure during the quarter, said SAIL. fiinews.com
