SAIL Faces Profit Decline Amid Rising Expenses and Market Challenges

State-owned SAIL reported a significant drop in net profit to Rs 141.89 crore for the December quarter due to rising expenses, despite a rise in total income. The steel market's declining prices and cheap imports have been attributed as contributing factors to this decline.

State-owned Steel Authority of India Limited (SAIL) announced a dramatic 66 percent decline in consolidated net profit for the December quarter, recording Rs 141.89 crore. This substantial drop, compared to Rs 422.92 crore in the previous year, stemmed from rising expenses impacting its bottom line.

Despite this financial setback, SAIL's total income climbed to Rs 24,723.43 crore, from Rs 23,492.33 crore the preceding year. Meanwhile, expenses soared to Rs 24,560.47 crore, up from Rs 23,140.81 crore in the same period last year, compounding the company's financial challenges.

SAIL Chairman Amarendu Prakash attributed these difficulties to a challenging steel market, marked by falling prices and an influx of inexpensive imports. However, he expressed optimism that strategic interventions and government infrastructure initiatives would bolster the domestic steel industry's future prospects.

(With inputs from agencies.)