Q1 2025 Steel Authority of India Ltd Earnings Call Transcript
Key Points
- Steel Authority Of India Ltd (BOM:500113) reported an EBITDA of INR2,420 crores, an improvement of around 16% over the corresponding period last year.
- The company has made steady progress in operational efficiency, reducing coal-coke consumption, increasing the use of CDI, and improving BF productivity.
- Domestic sales have grown by 5%, indicating strong demand within the country.
- The company is optimistic about future margins due to government infrastructure spending and efforts to reduce costs by diversifying coal sources.
- Steel Authority Of India Ltd (BOM:500113) is planning significant capacity expansions, including a new 4 million tonne plant at IISCO and de-bottlenecking schemes to increase capacity by 3 million tonnes over the next three to four years.
- The company has experienced a significant increase in debt, rising by around INR5,000 crores during the quarter, primarily due to accumulated coal stocks and increased inventory.
- Export sales have registered a substantial decline, impacting overall sales volumes.
- The price of steel has softened in the international market, which may impact margins.
- The company has faced challenges with the shutdown of the hot strip mill at Bokaro, affecting production and sales volumes.
- There is uncertainty regarding future steel prices, with declines observed in July and August, which could further impact revenue and profitability.
Ladies and gentlemen, good day, and welcome to the Q1 FY25 earnings conference call of Steel Authority of India hosted by Nuvama Wealth Management. (Operator Instructions)
I now hand the conference over to Mr. Ashish Kejriwal from Nuvama Wealth Management. Thank you, and over to you, sir.
Thank you, Sidhant. Good afternoon, everyone. On behalf of Nuvama Institutional Equities, we welcome you all again for SAIL Q1 FY25 post-result call. We are pleased to have with us Mr. Anil Tulsiani, Director Finance, along with his team.
Now I will request Mr. Tulsiani for his opening remarks, and then we can open the floor for Q&A. Over to you, sir.
()
Thank you, Mr. Ashish. Good afternoon, everyone, and welcome to all our investors and analysts who are joining this results con call for the financial results of SAIL for the previous Q1 financial year '24
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