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Cheaper imports and weak demand resulting in a sharp fall in steel prices in the domestic market has led Steel Authority of India Ltd to a net loss of ₹1,528 crore for the third quarter of fiscal 2015-16.
In the same quarter last year, the company had a net profit of ₹579 crore.
During the quarter, the company’s net revenue fell 19.5 per cent to ₹8,939 crore as compared to ₹11,107 crore in the same quarter last year.
SAIL has now reported a net loss in all the three quarters of financial year 2015-16. For the nine month period its net loss stood at ₹2,906 crore. In the same period last fiscal, it had a net profit of ₹1,758 crore.
For the nine months ended December 31, SAIL’s net revenues fell 18.8 per cent ₹27,698 crore as compared to ₹34,126 crore in the same period last year.
On February 5, the government levied a minimum import price ranging from ranging from $341 to $752 a tonne on 173 steel products to protect the domestic manufacturers.
SAIL has been one of the worst hit during the fiscal as cheaper imports and weak demand growth has led to fall in steel prices by over 15-20 per cent across categories in the past six months.
Apart from Bhilai, all of SAIL’s steel plants were making a loss before interest, exceptional items and tax. Even at Bhilai, the profit before interest, exceptional items and tax shrank to ₹ 19.87 crore during the quarter as compared to ₹ 634 crore in the same quarter last year.
SAIL’s shares ended 4.18 per cent lower on the BSE at ₹38.95.
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