SAIL Q2 profit up 12% on forex gain, better volumes
State-controlled steel producer Steel Authority of India's (SAIL) net profit rose lower than expected 11.9 percent year-on-year to Rs 543 crore in the second quarter of current financial year due to lower other income.
Steel Authority of India's (SAIL's) September quarter profit rose 12%,YoY to Rs 543 on forex gain and improved realization. The state-run steel maker has reported a forex gain of Rs 418 crore as against a loss of Rs 509 crore,YoY
Sales also grew, but marginally to Rs 10,836 crore from Rs 10, 663, YoY.
Analysts on an average were expecting net profit of Rs 790 crore on revenues of Rs 11,250 crore for the quarter.
EBITDA margin dropped 190 basis points YoY to 8.9 percent during the quarter. Analysts had expected it at 12.4 percent.
Other income halved to Rs 228.5 crore during the quarter from Rs 490.4 crore,YoY.
C.S.Verma, chairman of the company said, "Higher production along with improvement in key techno economic parameters gave us profitability gains. Besides, growth in sales realisation gave us added benefits. Going forward, we are optimistic about the growth in the Indian steel industry and SAIL is appropriately ramping up its production to meet the growing demand."