Steel Authority of India (SAIL) shares fell as much as 6 per cent on Friday after India’s biggest steel maker reported a widening of losses in the June quarter. This was the fourth consecutive quarter of losses for SAIL.
SAIL posted a loss of Rs 535 crore in Q1 as compared to a loss of Rs 248 crore last year, on account of lower realization, high interest cost and depreciation charges. SAIL’s revenue also declined 3 per cent to Rs 9,238 crore in Q1 as compared to Rs 9,493 crore in the corresponding quarter of last fiscal.
SAIL’s bottom line was also impacted by an exceptional item of Rs 54 crore, which the company paid towards voluntary retirement compensation during the quarter, said domestic brokerage Angel Broking.
SAIL’s steel production increased 11 per cent year-on-year to 3.44 million tonnes (MT) in the June quarter.
SAIL shares ended 5.77 per cent lower at Rs 50.65.