SAIL's continual thrust on gaining operational excellence has led to the company remaining EBITDA positive for four consecutive quarters, which stood at Rs 671.6 Crore vis-à-vis Rs (-) 2,203 Crore over the corresponding period of last year, recording an increase of Rs. 2875 Crore. The Company has narrowed down its losses by around 30% in FY17 and recorded an overall improvement in production, sales, and productivity.
Speaking about it, the company's Chairman, P.K. Singh, said, "The Company's uninterrupted efforts to achieve operational excellence has helped us become EBDITA positive for the fourth time in a row. Despite the sharp hike in imported and domestic coal prices, which has also neutralized the NSR gains, we have managed to compress the loss. There is an improvement in the performance on all accounts.
The Company's sales turnover recorded an improvement of around 14% in FY17 and stood at Rs 49,180 Crore Versus Rs 43,294 Crore in FY16. It was the best-ever sales performance for any given year with a growth of 8% over previous year. The Profit After Tax (PAT) narrowed to Rs (-) 2,833 Crore, an improvement of 30%, over Rs (-) 4,021 Crore in FY16.
The unprecedented increase in coal prices during FY17 impacted the numbers and stunted the overall margins. In FY 17, there was an impact of around Rs 4,300 Crore increase over FY16 on account of prices of both imported and domestic coal which neutralized the significant improvement in Net Sales Realization (NSR) during FY17 over FY16. Along with this, the charges for capitalization of assets on account of interest and depreciation have also gone up affecting the margins. Also, in FY 17 there was a one-time expense on account of VR Scheme which was a part of the company's long-term strategy for manpower rationalization.
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SAIL remains EBITDA positive
By IndianMandarins - 2017-06-01 10:55:09
SAIL's continual thrust on gaining operational excellence has led to the company remaining EBITDA positive for four consecutive quarters, which stood at Rs 671.6 Crore vis-à-vis Rs (-) 2,203 Crore over the corresponding period of last year, recording an increase of Rs. 2875 Crore. The Company has narrowed down its losses by around 30% in FY17 and recorded an overall improvement in production, sales, and productivity.
Speaking about it, the company's Chairman, P.K. Singh, said, "The Company's uninterrupted efforts to achieve operational excellence has helped us become EBDITA positive for the fourth time in a row. Despite the sharp hike in imported and domestic coal prices, which has also neutralized the NSR gains, we have managed to compress the loss. There is an improvement in the performance on all accounts.
The Company's sales turnover recorded an improvement of around 14% in FY17 and stood at Rs 49,180 Crore Versus Rs 43,294 Crore in FY16. It was the best-ever sales performance for any given year with a growth of 8% over previous year. The Profit After Tax (PAT) narrowed to Rs (-) 2,833 Crore, an improvement of 30%, over Rs (-) 4,021 Crore in FY16.
The unprecedented increase in coal prices during FY17 impacted the numbers and stunted the overall margins. In FY 17, there was an impact of around Rs 4,300 Crore increase over FY16 on account of prices of both imported and domestic coal which neutralized the significant improvement in Net Sales Realization (NSR) during FY17 over FY16. Along with this, the charges for capitalization of assets on account of interest and depreciation have also gone up affecting the margins. Also, in FY 17 there was a one-time expense on account of VR Scheme which was a part of the company's long-term strategy for manpower rationalization.
