Steel Authority of India Ltd. (SAIL) registered 21% growth in net sales revenue which stood at Rs. 13,442 Crorefor the second quarter of FY17-18(Q2FY18) as against Rs. 11,080 in CPLY. SAIL’semphasis on increasing the share of high value products in its basket has begun to positively influence revenue earnings.SAIL recorded 4% growth in domestic sales in H1FY18 (Apr-Sept’17) with 21% improvement in sales of high value products like Cold Rolledand galvanized products. There has also been a sizeable30% improvement in sales of railway products during H1 FY18.

Registering positive EBITDA for the sixthconsecutive quarter, SAIL achieved EBITDA of Rs. 967 Crore before exceptional expenses in Q2FY18,recording agrowth of more than 400% against an EBITDA of Rs. 192 Croreduring CPLY, and postinga cash profit pre-depreciation and exceptional items of Rs. 323 Crore in Q2FY18. Notably, the EBITDA for Q2FY18 is higher than of the entire fiscal 16-17. SAIL’s EBITDA margin to net sales revenue ratio stands at 7.1% in Q2FY18 as against 1.7% in CPLY, indicating higher efficiencies across the production processes and value chain.

The Company reduced its losses by registering 26% improvement in PAT which stood at Rs (-) 539Crore in Q2FY18 as against Rs (-) 732 Crore over CPLY. Despite improved sales revenue, earnings were impacted by huge rise in imported coal price, which partially negated the higher accruals. In order to neutralise the rise in input costs, the Company is continually ramping up production from new facilities.Simultaneously, the Company is optimising the utilization of its finishing facilities to increase the high value product offerings for better market realisation.Specific branding of products from the new mills is also one of the steps towards this.

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