One of the top three steel-producing businesses in the nation, SAIL’s stock drop , reported a 61.51% decline in overall net profit to ₹81.78 crores on Thursday, primarily due to SAIL’s stock drop sales.
Friday, August 9, saw a nearly 2% decrease in shares issued by the state-run Steel Authority of India Ltd (SAIL), one day after the business released disappointing statistics for the first quarter of its fiscal year 2024–25 (Q1FY25).
SAIL’s stock drop price on the National Stock Exchange (NSE) started the day’s session at ₹136 per share, a 1.1% decrease from the previous closing price.
The stock fell to ₹134.9 minutes into the trade, 1.9% below the closing of the previous session. SAIL’s stock drop had a 1.9% decline on the BSE as well during the first trading hour, closing at ₹134.85.
SAIL, one of the top three steel-producing companies in the nation, reported a 61.51% decline in overall net income to ₹81.78 crore on Thursday, primarily attributed to decreased revenue.
In an exchange filing, the business stated that for the April–June quarter of the previous fiscal year, 2023–24, it reported a net revenue of ₹212.48 crore.
From ₹24,822.83 crore a year earlier to ₹24,174.80 crore in the quarter, the company’s overall income SAIL’s stock drop. Compared to the same period last year, when its total costs were ₹24,598.06 crore, they were ₹23,871.60 crore.
In Q1FY24, the single profit after tax SAIL’s stock drop drastically from ₹150 crore to ₹10.68 crore. The company said in a separate statement that it produced 4.67 million tons (MT) of crude steel as opposed to 4.68 MT in the year before. The sales volume decreased from 4.01 MT in the first quarters of FY24 to 3.88 MT.
“Domestic usage of steel continues to grow slowly, driven by traditional and emerging sectors,” stated SAIL Chairman Amarendu Prakash. Furthermore, as indicated in the most recent budget, the government’s ongoing investment in the built environment sector should support growth.
“With the local sector for steel looking good, SAIL’s stock drop continues to focus on growing its output levels. It is expected that in the future, the challenges raised by less expensive imports would be effectively addressed.
Read more:
Why is the price of SAIL’s shares declining:
SAIL Stock Value NSE, BSE: Following the disclosure of a 61.51 percent decline in combined net income to Rs 81.78 crore by the Maharatna PSU, shares of the government ownership steel maker Steel Authority of India (SAIL) decreased down about two percent. Reduction in income was the primary cause of the decline in net profit.
Are SAIL shares an appropriate long-term investments:
According to expert evaluations, Steel Association of India Ltd Stock has a “Buy” for a long time rating.
Is SAIL too expensive:
One SAIL stock has an assessed DCF value of 108.49 INR. With respect to the stock’s present market value of 146.39 INR, it is 26% overvalued.
What will SAIL’s dividend be in 2024:
The steel regulator of India issued a stock dividend of 20.00%, or Rs 2 per share, for the calendar year beginning in March 2024. This yields a dividend of 1.46% at the present share price of Rs 136.62. For the last five years, the company has regularly shipped dividend and has a strong dividend performance.
Why has SAIL’s stock dropped:
One of the top three steel-producing companies in the nation, SAIL, reported a 61.51% decrease in its its overall net profit to ₹81.78 crores on the afternoon on Thursday, mostly on account of reduced sales.