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Mumbai: on Friday reported a 31% increase in consolidated net profit for the fiscal fourth quarter, which the state-owned steelmaker attributed to higher production and improvement in operational efficiency.

Net profit rose to ₹3,469.88 crore for the quarter ended March 31 from ₹2,647.52 crore a year earlier. Fourth-quarter consolidated revenue from operations rose 44% to ₹23,284 crore.

For the fiscal year 2021, SAIL reported a 90.5% increase in net profit at ₹3,850 crore. Revenue grew 12.2% to ₹68,452 crore.

SAIL reported its highest ever quarterly production of hot metal, crude steel and saleable steel in the fourth quarter at 4.98 million tonnes (MT), 4.56 MT and 4.42 MT, respectively.

“Our priority remains to increase volumes, with emphasis on enhancing the share of value-added products, in tandem with market requirements while continuously bringing in systemic improvements across the organisation,” chairman Soma Mondal said in a news release.

Earnings before interest, tax, depreciation and amortisation at ₹6,473 crore fell 6.4% from the fourth quarter of fiscal 2020.

The company said its net debt shrank nearly a third to ₹35,350 crore as of March 31.

On Friday, its board also declared a dividend of ₹1.80 a share.

“SAIL’s capex at ₹38 billion (₹3,800) crore was slightly lower than our estimate of ₹40 billion, and the company’s revised guidance of ₹42 billion. Currently, we have a ‘HOLD’ rating on the stock with a target price of ₹140,” said Amit Dixit, a research analyst at Edelweiss.

On Friday, the shares rose 5% to close at ₹135.05 on the BSE where the benchmark Sensex gained 0.33%.

SAIL Net Surges 31% in Q4 on Improved Volumes, Efficiency

SAIL Q4 net profit surges 31% on improved volumes, efficiency

By ariox