Higher sales of secondary products and sale of iron ore fines, lower usage of other raw materials, decreased purchased power rates, and a reduction in interest charges primarily contributed to Steel Authority of India Limited (SAIL) achieving a 10-year high in net profits in the fiscal year 2020-21, SAIL chairperson Soma Mondol told company shareholders on Wednesday, September 29.
She said that SAIL’s strategy had been optimal utilizations of operational facilities instead of operating a larger number of facilities at sub-optimal levels.
SAIL reported its highest-ever EBITDA of $1.88 billion, up 23 percent over the fiscal year 2019-20, and a profit before tax of $942 million, up 117 percent year on year.
“SAIL is now prepared to move toward its next level of expansion,” she said.
SAIL has commenced planning for its next phase of expansion to ramp up its installed steel making capacity to 50 million mt per year, more than double its existing hot metal production capacity. The expansion program is expected to be finalized within the next 15-18 months and project work is expected to commence in 2023-24.