ndian state-owned steel major Steel Authority of India (SAIL), a Maharatna PSU, has recorded its best ever quarterly performance in terms of both production and sales during Q4 of 2020-21. The company achieved crude steel production of 4.55 MT in Q4 of 2020-21 as compared to 4.31 MT in Q4 of 2019-20, an increase by 6% YoY. This corresponds to a rise by 4% QoQ when compared to 4.37 MT produced in Q3 of 2020-21.
The company achieved steel sales of 4.27MT in Q4 of 2020-21 as compared to 3.74 MT in Q4 of 2019-20, an increase by 14% YoY and up by 3% QoQ as compared to 4.15 MT in Q3 of 2020-21.
SAIL registered its best ever annual sales at 14.87 MT in 2020-21, an increase by 4.4% over 14.23 MT in 2019-20. This is a phenomenal achievement amid the market volatility and economy badly hit by coronavirus pandemic.
The profitability for the company is likely to improve further in the coming months taking a note of Centre’s decision to increase capital expenditure in Railways. With an increased capex allocation of Rs. 2,15,058 as compared to Rs.1,50,000 last year, SAIL is likely to benefit by bagging more steel order.
The Indian Railways is planning to procure about 11 lakh tonnes of steel for track renewal and laying down new lines across the country. The company contributed 10.48 lakh tonnes of steel in 2018-19 and 13.85 lakh of steel in 2019-20. However, the numbers has not been confirmed and can increase further taking into account the increased allocation in capex which will correspond to increased profitability for the company.
Indian Railways had undertaken serious efforts in the last couple of years for track renewal in order to prevent train accidents resulting from poor infrastructure.
