SAIL Q3 FY25 Results: 66% Profit Decline Despite 5% Revenue Growth – Stock Rises 3.5%
Business and Industry Overview:
Steel Authority of India Limited (SAIL) is the largest Indian public sector (government-owned) manufacturing corporation with an annual production capacity of 18.29 million metric tons. While the Indian government holds a major stake of about 65% in SAIL, its Maharatna status allows the company to operate with autonomy in financial and operational matters, enabling faster decision-making and business expansion. The company has a total of 692 patents filed under its name globally, out of which 343 have been granted. More than 64% of the 692 patents are active. SAIL has filed the maximum number of patents in India, followed by Egypt and Germany.
SAIL operates five integrated steel plants, each with a rich legacy and global collaborations. Rourkela Steel Plant (RSP) in Odisha is India’s first public-sector steel plant that was set up with German collaboration. Bhilai Steel Plant (BSP) in Chhattisgarh (1959) and Bokaro Steel Plant (BSL) in Jharkhand (1964) were established with Soviet assistance, and it is India’s first Swadeshi steel plant. Durgapur Steel Plant (DSP) in West Bengal (1965) was set up with British collaboration, while IISCO Steel Plant (ISP) in West Bengal, modernized in 2015 with a ₹16,000 crore investment, houses India’s largest blast furnace.
SAIL also runs special steel plants like Alloy Steel Plant (ASP) in West Bengal, which supplies the Indian Ordnance Factories; Salem Steel Plant (SSP) in Tamil Nadu for stainless and micro-alloyed steel; and Visvesvaraya Iron & Steel Limited (VISL) in Karnataka for high-quality alloy steels. The Chandrapur Ferro Alloy Plant (CFP) in Maharashtra supports steelmaking with ferro-manganese and silico-manganese. Additionally, SAIL Refractory Units (SRU) in Jharkhand and Chhattisgarh ensure a steady supply of refractory materials. With this vast network, SAIL remains a key pillar of India’s steel industry, catering to infrastructure, transportation, and defence.
India is the second largest steel manufacturer of crude steel in the world, surpassing Japan in 2019; the industry is growing at a very exponential rate of 5% to 7.3%. And for an emerging economy like India, meeting its hard metal requirement is very important, and the steel sector has been a major contributor to India’s manufacturing output. The iron and steel industry in India is projected to grow from $188.5 billion in 2023 to $264 billion by 2032. This would be a compound annual growth rate (CAGR) of 4.30%. SAIL is India’s largest steel-making company, with integrated plants in the eastern and central regions
Latest Stock News:
Steel Authority of India Ltd. (SAIL) reported a 66% decline in net profit for Q3 FY5 despite a 5% increase in revenue. Following the earnings announcement, the stock rose by 3.5%, although it remains 41% below its 52-week high, indicating ongoing challenges in the steel market.
For Q3 FY25, SAIL’s consolidated net profit stood at ₹141.89 crore, a significant drop from ₹422.92 crore in the same quarter the previous year. This decline was primarily due to higher costs and pricing pressures. Comparatively, profit after tax (PAT) saw an 84% plunge from ₹897 crore in Q2 FY25.
Revenue from operations grew by 5% year-on-year, reaching ₹24,490 crore, up from ₹23,349 crore. However, on a quarter-on-quarter basis, revenue experienced a slight dip of 0.75% from ₹24,675 crore in Q2 FY25.
At the operational level, SAIL’s earnings before interest, tax, depreciation, and amortization (EBITDA) declined by 5.3% year-on-year to₹2,029.6 crore, down from₹2,142.5 crore in Q3 FY24. The EBITDA margin contracted to 8.3% in Q3 FY25, compared to 9.2% in the same period last year, reflecting increased input costs and pricing challenges.
Segmental information
- Steel Production:
These segments position SAIL as an integrated steel producer serving diverse industries like infrastructure, railways, automotive, and defence. It has integrated and special steel plants. This includes:
- Flat Steel Products: Hot-rolled (HR) and cold-rolled (CR) coils, sheets, galvanized sheets, and plates used in automobiles, construction, and white goods.
- Long Steel Products: Rails, structural steel (joists, channels, angles), TMT bars, and wire rods used in infrastructure and construction.
- Specialty Steel Products: Stainless steel, alloy steel, and high-quality special steel catering to defence, railways, and engineering sectors.
2. Mining & Raw Material Production
SAIL ensures raw material self-sufficiency through its captive mines for iron ore, coal, limestone, and dolomite, reducing dependency on external suppliers and enhancing cost efficiency.
3. Ferro Alloys & Refractory Products
- Ferro Alloys: Production of ferro-manganese and silico-manganese at Chandrapur Ferro Alloy Plant, essential for steelmaking.
- Refractory Products: Manufacturing of refractory bricks and materials through SAIL Refractory Units (SRU) to support high-temperature industrial processes.
4. Value-Added & Downstream Products
SAIL focuses on high-margin, value-added products, including:
- Galvanized and coated steel for automotive and construction applications.
- High-tensile and wear-resistant steel for defence and heavy engineering.
5. Energy & Power Generation:
To support its energy-intensive operations, SAIL has captive power plants within its steel plants, ensuring energy security and operational efficiency. These business segments position SAIL as an integrated steel producer, catering to diverse industries, including infrastructure, railways, automotive, defence, and manufacturing.
Subsidiary Information:
Subsidiaries
- SAIL Refractory Company Limited
- Chhattisgarh Mega Steel Limited
Associate Company:
- Almora Magnesite Ltd
Joint Ventures
- NTPC-SAIL Power Company Private Limited
- International Coal Ventures Private Limited
- Bastar Railway Private Limited
- SAIL RITES Bengal Wagon Industry Private Limited
- GEDCOL SAIL Power Corporation Limited
- Mjunction Services Limited
- Bokaro Power Supply Company Private Limited
- Bhilai Jaypee Cement Limited
- SAIL Kobe Iron India Private Limited
- SAIL Bansal Service Centre Limited
- Prime Gold-SAIL JVC Limited
- SAIL SCL Kerala Limited
- VSL SAIL JVC
- Romelt SAIL (India) Limited
Q3 Highlights
- SAIL’s net profit dropped 66% in Q3 FY25 despite 5% revenue growth.
- The stock rose 3.5% post-earnings but is 41% below its 52-week high.
- Q3 FY25 net profit is ₹141.89 crore, down from ₹422.92 crore in Q3 FY24.
- PAT fell 84% from ₹897 crore in Q2 FY25.
- Revenue is ₹23,349 crore, up 5% YoY but down 0.75% QoQ.
Financial Summary
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 23,349.00 | 24,490.00 | 104,448 | 105,378 |
| Expenses | 21,206.00 | 22,460 | 96,410 | 94,229 |
| EBITDA | 2,142 | 2,030.00 | 8,038.00 | 11,149.00 |
| OPM | 9% | 8% | 8% | 11% |
| Other Income | 355 | 393 | 1,856 | 665 |
| Net Profit | 423.00 | 142.00 | 2,177 | 3,067 |
| NPM | 1.81 | 0.58 | 2.08 | 2.91 |
| EPS | 1.02 | 0.34 | 5.27 | 7.42 |