SAIL shares plummets over 6% amid weak Q2FY25 results; PAT falls by 31%

Steel Authority of India (SAIL) experienced a 6.7% drop in share price on the Bombay Stock Exchange (BSE) on Friday, November 8, hitting an intraday low of Rs 115 per share. This decline followed the company's announcement of disappointing results for the second quarter of fiscal year 2025.

The company reported a 31% decrease in consolidated net profit, which fell to Rs 897.15 crore, down from Rs 1,305.59 crore in the same period last year. Additionally, the company's revenue fell by 17%, amounting to Rs 24,675 crore compared to Rs 29,714 crore a year earlier.

"We expect H2 FY25 to bring more promising results compared to H1 FY25, which was impacted by various challenges. Moving forward, with an expected downtrend in steel imports and projected growth in GDP and capital expenditure, H2 FY25 may yield better performance," said Amarendu Prakash, chairman, SAIL.

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The company's total income decreased to Rs 24,842.18 crore from Rs 29,858.19 crore in the second quarter of the preceding 2023-24 financial year. Its expenses stood at Rs 23,824.07 crore as compared to Rs 27,768.6 crore in the year-ago quarter. In a separate statement, the company said its crude steel output fell marginally to 4.76 million tonnes (MT) from 4.76 MT in July-September last fiscal.

Sales also decreased to 4.10 MT from 4.77 MT in the same quarter a year ago. The Earnings before interest, tax, depreciation, and amortization (EBITDA) stood at Rs 2,904 crore as compared to Rs 3,869 crore a year ago which implies a reduction of 25%. The EBITDA margins of the company for the quarter under review stood at 11.8% as compared to Rs 13%, a contraction of 120 basis points (bps).

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The company's total income decreased to Rs 24,842.18 crore from Rs 29,858.19 crore in the second quarter of the previous financial year. Its expenses stood at Rs 23,824.07 crore as against Rs 27,768.60 crore in the year-ago quarter.

In a separate statement, the company said its crude steel output fell marginally to 4.76 million tonnes (MT) from 4.76 MT in July-September last fiscal. Sales also decreased to 4.10 MT from 4.77 MT in the same quarter a year ago.

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