“The company adopted a focussed approach on improving its volumes, improving operational efficiencies, operating the facilities at optimum levels, deleveraging its balance sheet and reducing its inventory levels,” Sail chairman Soma Mondal said in a statement, adding that the multi-pronged strategy helped the company top its performance.
Sail’s gross debt stood at Rs 51,481 crore on March 31, 2020.
In FY21, Sail reported annual sales of 14.87 million tonnes (mt), up 4.4% from the previous year. In Q4, the company clocked sales of 4.27 mt.
The company’s crude steel production was up 6% to 4.55 mt compared with 4.31 mt during the same period last year.
The company has been deleveraging its balance sheet since Q3 of FY21, as its debt stood at Rs 44,308 crore as of December 31, 2020. This comes at a time when the steel upcycle has pushed the commodity’s price to record high levels of Rs 56,000 to Rs 60,000 a tonne for benchmark HRC.
In an earlier interaction, the company’s former chairman, Anil Kumar Chaudhary, had said that a large portion of the company’s debt is held up in government departments and it is trying to recover that.
“We are also trying to dispose of many of the idle assets. We have discarded many mills and blast furnaces and good money is released already,” Chaudhary said.