Steel Authority of India Limited (SAIL) reported a decline in first-quarter profit, attributing it to sluggish domestic demand and falling prices. The state-owned company's consolidated net profit for the quarter ended June 30 decreased by more than 61% to 817.8 million rupees (approximately USD 10 million).
The company’s revenue decreased by 1.5% to 239.98 billion rupees (about USD 2.9 billion). The decline in domestic steel demand was due to a reduction in government spending on infrastructure and manufacturing due to the general elections. Moreover, steel prices came under downward pressure as India imported finished steel at lower rates.
Despite these challenges, market experts remain optimistic about India's steel sector, suggesting that the country holds promise amid weakness in the global market. On the other hand, lower coking coal prices have positively impacted the profitability of other industry players such as Tata Steel, which reported a rise in consolidated profit last month.
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