Increased sales of secondary products, iron ore fines, enabled SAIL to achieve record ten-year profits: President of SAIL
The increased sales of secondary products, the sale of iron ore fines, the decline in the use of other raw materials, the lowering of electricity purchase tariffs, the reduction of interest charges, the ‘Increased dividend income and foreign exchange gains were among the main factors that helped Steel Authority of India Ltd (SAIL) post the highest profit before tax (PBT) in the past ten years, said Soma Mondal, President.
Speaking at the company’s 49th annual general meeting, she described fiscal 21 as the year of “growth and new heights” for SAIL. The company posted its highest ever EBITDA of 13,740 crore, a 23% increase over the corresponding period last year (CPLY).
Mondal described some of the measures taken by the company to address the challenges due to the Covid-19 pandemic. SAIL has made optimal use of operational facilities instead of operating more facilities at a sub-optimal level, she said.
“Along with reducing costs by reducing the level of consumption for various inputs, major repairs were also carried out whenever possible. In these difficult times, the company has maximized sales volumes through potential channels such as exports, shipping to railways while reducing cash outflows by reviewing commitments and renegotiating contracts, among others ” , she added.
According to Mondal, SAIL has developed a medical infrastructure to handle the Covid-19 pandemic and has increased these facilities during the second wave. SAIL hospitals in 5 integrated steelworks sites were initially allocated 10% (330 beds) of the total beds for Covid-19 patients. They were then increased to 1,000 dedicated Covid beds with oxygen support.