SAIL shares fall 5% as Q3 profit suffers a 22% dent

Over the past six months, SAIL shares have surged over 40 percent.

Steel Authority of India (SAIL) fell 5 percent on February 13 after the state-owned steel maker reported a consolidated net profit of Rs 423 crore for the October-December period of FY24.

The profit fell 22 percent on-year on a high base as in Q3FY23, there was an exceptional gain of Rs 298 crore. Revenue from operations fell 6.8 percent on-year to Rs 23,349 crore for the quarter.

As of 9.30 am, shares of SAIL were trading at Rs 118.05 per share, lower by 3.8 percent on the NSE.

On February 12, shares of SAIL settled more than 7.63 percent lower at Rs 123.45 on the NSE. "The consistent efforts by the company towards increasing its volumes have had a positive impact on the financial performance despite the significant decline in the price realization during the quarter," said Chairman Amarendu Prakash.

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SAIL's revenue from its Bhilai plant stood at about Rs 6,500 crore, down 12.1 percent, while that of Rourkela and Bokaro units came in at Rs 5,863.3 crore and Rs 6,003.6 crore, respectively.

Crude steel production in the quarter came in at 4.75 million tonnes as against 4.71 million tonnes last year. while sales volume fell to 3.81 million tonnes from 4.15 million tonnes.

The public sector unit also declared an interim dividend of Re 1 per equity share of Rs 10 each. The record date for the purpose of payment of interim dividend is February 20.

The Centre holds around 65 percent in SAIL, while FIIs and DIIs hold 4.3 percent and 15.5 percent. Of the DIIs, Life Insurance Corporation of India has a 9.2 percent shareholding in the company, as of the quarter ended December 2023. The remaining 15.2 percent in the company is owned by the public.

Over the past six months, SAIL shares have surged over 40 percent as compared to a 12 percent rise in the frontline index Nifty 50 during the same time period.

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