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India: SAIL's crude steel production, sales edge up q-o-q in Q2FY'25

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BigMint Bureau

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9 Nov 2024, 13:11 IST

India: SAIL's crude steel production, sales edge up q-o-q in Q2FY'25

Capex stands at INR 2,250 crore in H1FY'25

Finished steel stocks at 1.93 mnt in Q2FY'25

PSU steelmaker Steel Authority of India Limited (SAIL) posted a slight q-o-q rise in crude steel production and sales in Q2FY'25. Additionally, the company spent around INR 2,250 crore in the first half of FY'25 (H1FY'25).

Highlights

Crude steel production up q-o-q: The company's crude steel production edged up 2% to 4.8 mnt in Q2FY'25 as compared with 4.7 mnt in the previous quarter. Meanwhile, on a y-o-y basis, output remained stable at 4.8 mnt.

Sales rise 2% q-o-q: Sales volumes edged higher by 2% to 4.10 mnt in Q2FY'25 from 4.01 mnt in the last quarter. However, the same witnessed a 14% drop from 4.77 mnt in Q2FY'24.

EBITDA increases q-o-q: The company's EBITDA increased 31% to INR 3,174 crore in Q2 as against INR 2,420 crore in the previous quarter. Meanwhile, the same declined 21% from INR 4,043 crores in the CPLY.

Revenue from operations up q-o-q: Revenue from operations rose 3% to INR 24,675 crore in Q2FY'25 as against INR 23,998 crore in Q1FY'25. On a y-o-y basis, the same was down by 17% as compared with INR 29,714 crores in Q2FY'24.

Net sales realisation (NSR): The average net sales realisation (NSR) for the quarter was around INR 50,500/t. Product-wise, long steel prices averaged around INR 52,000/t, while flat steel prices were at around INR 49,000/t in Q2 FY'25. In October, flat steel prices stood at INR 46,500-47,000/t, while long steel prices were at INR 52,500-53,000/t. Additionally, prices have seen an upward trend in November so far.

Inventory: The finished steel inventory was around 1.93 mnt for the quarter ending 30 September.

Coking coal prices: Prices of imported coal averaged around INR 22,000/t in Q2FY'25, compared with INR 24,000/t in the previous quarter. Hence, the average price for the first half (H1FY'25) was around INR 23,000/t. Looking ahead, projections indicate that the price of imported coal will be around INR 20,000/t for both October and November.