SAIL Q1 net profit down 61% to Rs 82 crore as cheaper imports hit realisations

Challenges from cheaper imports are expected to be addressed appropriately in the future, SAIL Chairman Amarendu Prakash said. (File photo)

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26 Aug, 2025 12:21

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Steel Authority of India Ltd (SAIL) reported a 61 percent year-on-year fall in consolidated net profit at Rs 81.78 crore for the June quarter of the financial year 2024-25, amid weaker domestic steel prices arising from increased competition from China.

Consolidated revenue from operations stood at Rs 23,997.8 crore, down one percent from the previous year, the state-owned steelmaker said on August 8.

On a standalone basis, net profit plunged 92.3 percent to Rs 11 crore from Rs 150 crore in the same quarter last year.

"The challenges posed by cheaper imports are anticipated to be addressed appropriately in the future," SAIL Chairman Amarendu Prakash said adding that the steelmaker is focussed on increasing production volumes.

Consolidated revenue from Salem Steel plant fell 14 percent to Rs 566 crore in the quarter and revenue from Bokaro steel plant dipped 22.4 percent. But revenues from Bhilai and Rourkela steel plants rose 12.8 percent and 5.4 percent, respectively.

Revenue from operations was affected by a decline in Net Sales Realization (NSR) in the domestic steel market due to cheap imports. The profit for Q1 FY'25 was impacted by lower NSR and adjustments related to exceptional items, the company said in a statement.

SAIL booked charges worth Rs 309.3 crore relating to perquisites and allowances payable to executive employees of the company from 26 November, 2008 to 4 October,2009.  On a standalone basis, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) grew 16 percent to Rs 2,420 crore.

During the first quarter, the domestic market saw an increased supply of the commodity, driven by a preference for cheaper imported alternatives and need-based procurement. Heads of Tata Steel and JSW Group called out for stricter trade curbs to address the issue.

According to reports, the government is investigating the imports issue. India turned into a net finished steel importer in the fiscal year ending March 2024 (FY24). According to reports, in 2023-24, India saw a significant rise in steel imports at 8.3 million tonnes, against the 7.5 million tonnes it exported.