Q4 2025 Steel Authority of India Ltd Earnings Call Transcript
Key Points
- Steel Authority Of India Ltd (BOM:500113) achieved its best-ever annual sales performance with a 5% increase in sales volume, reaching 17.9 million tonnes.
- The company reported a significant reduction in borrowings, decreasing from INR35,659 crores in June 2024 to INR29,811 crores by March 2025.
- Operational efficiencies led to a cost reduction of around INR650 crores, contributing positively to the bottom line.
- The company is focusing on decarbonization and has reduced specific CO2 emissions by over 3% compared to the previous year.
- Steel Authority Of India Ltd (BOM:500113) plans to expand its capacity from 20 million tonnes to 35 million tonnes by 2030, with initial CapEx of INR7,500 crores planned for FY26.
- The global economic slowdown and tariff wars have impacted the steel industry, leading to a decline in global steel production by around 1% in 2024.
- Despite a 5% increase in sales volume, the decline in sales prices more than offset the reduction in imported coal prices, impacting turnover and profitability.
- Employee costs saw a sharp increase in Q4 due to adjustments in pension provisions and discounting factors, although a reduction is expected in the coming years.
- The company's semi-finished steel sales remain high at around 14%, with plans to reduce this to 10-12% in the future.
- The company faces challenges in addressing import competition and environmental sustainability, which are crucial for maintaining growth.
Ladies and gentlemen, good day, and welcome to the Q4 and FY25 conference call of Steel Authority of India, hosted by Nuvama Wealth Management Limited. (Operator Instructions) Please note that this call is being recorded.
I now hand the conference over to Mr. Ashish Kejriwal from Nuvama Wealth Management Limited. Thank you, and over to you.
Thank you, Yashasvi. Good afternoon, everyone. On behalf of Nuvama Wealth Management, we welcome you all for Q4 FY25 post-results call of SAIL. We are delighted to have Dr. Ashok Panda, Director of Finance, along with his team, who can help us in understanding the quarter four results and his view going forward.
Now I will request Mr. Panda for his opening remarks, and then, we can open the floor for Q&A. Over to you, sir.
Thank you very much, Mr. Ashish Kejriwal-ji, and I welcome all the participants through this con call. Good
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