SAIL reports fifth consecutive quarterly loss amid glut

Published: Sep 9, 2016 19:29

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Due to the fall of steel prices from the over supply of the metal Steel Authority of India Ltd (SAIL), reported a fifth consecutive quarterly loss in the first quarter ended June.

INDIA September 09 2016 4:39 PM

MUMBAI (Scrap Register): Due to the fall of steel prices from the over supply of the metal Steel Authority of India Ltd (SAIL), reported a fifth consecutive quarterly loss in the first quarter ended June.

The loss widened to 5.36 billion rupees ($81 million) in the first quarter ended June from 2.48 billion rupees a year ago. Sales fell 3 percent to 90.8 billion rupees.

State-run Sail is spending 40 billion rupees this year on increasing capacity by 43 percent to 21.4 million metric tons by 2018, part of a longer term goal of achieving 50 million tons in the next decade.

Concerns remain over the steelmaker’s weak margin profile as it makes the company highly sensitive to a decline in prices.

SAIL steel prices

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