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Steel Authority of India Ltd.’s shares were down by 3.94 per cent after the company reported a 73 percent decrease in profit for the quarter ended June 30, 2023, at ₹212.48 crore compared to ₹804.50 crore during the corresponding quarter last year.
The company’s profits were lower by 81 per cent compared to ₹1,159.21 crore in the previous quarter. However, The company’s revenue was up by 1.37 per cent to ₹2,459.10 crore compared to ₹24,028.62 crore last year.
According to a report by ICICI securities, SAIL’s management is actively pursuing a brownfield expansion to achieve a 35mtpa capacity by FY31. Stage-1 approval for 4.5mtpa expansions at IISCO and Durgapur is expected in H2FY24. Durgapur’s product mix will be finalized soon, and additional capacity increases of 3mtpa in other locations over 3-3.5 years are being planned.
The expansion is estimated to have a cash outflow of 10-15 per cent in the first two years and 25-30 per cent in the third and fourth years, with outflows starting post FY25.
The shares were down by 4.47 per cent to ₹87.06 per cent at close on BSE.
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