The country’s leading state-run steel producer, Steel Authority of India (SAIL) is aiming to reduce its net debt to a range of Rs 15,000-20,000 crore in the current fiscal if the prices and the demand for the commodity remain stable, a top official told news agency PTI. The steel manufacturer has a net debt of around Rs 30,000 crore by the end of April-June quarter of the financial year 2021-22, compared to Rs 35,350 crore by the end of the previous fiscal year.
The domestic steel major is aiming at reducing the debt from around Rs 30,000 crore now to anywhere between Rs 15,000-20,000 crore, depending upon the steel prices and demand situation, according to Soma Mondal, Chairman, SAIL. The prices of flat products remain stable, while those of long ones are improving, she added.
SAIL had decreased its net debt by Rs 16,131 crore to Rs 35,350 crore during the financial year 2020-21. The Maharatna PSU had announced that it would spend Rs 8,000 crore as capital expenditure in the current financial year.
SAIL reported a net profit of Rs 3,897 crore on a consolidated basis in the first quarter of the current fiscal, compared to a loss of Rs 1,266 crore in the corresponding period last year.
On Thursday, August 26, shares of SAIL settled 3.35 per cent lower at Rs 115.300 apiece on the BSE. SAIL opened on the BSE at Rs 119.70, inching to an intra day high of Rs 119.70, and an intra day low of Rs 114.05, throughout the trading session today.