Buzzing Stock: Shares of SAIL soar up by 13% after Q2 profit jumps tenfold

The company clocked its best-ever quarterly EBITDA, profit before tax and profit after tax.

Shares of Steel Authority of India Limited (SAIL) rallied as much as 13% to hit an intraday high of Rs 130.35 after the company reported September quarter earnings post-market hours on Friday.

During the quarter, SAIL's crude steel production came in at 4,468 million tons and saleable steel sales came in at 4,280 million tons. The company clocked its best-ever quarterly EBITDA, profit before tax and profit after tax.

The company’s total consolidated income also increased to Rs 27,007.02 crore, from Rs 17,097.57 crore in the corresponding quarter of the previous fiscal. SAIL's expenses during the quarter were at Rs 21,289 crore as against Rs 16,733.63 crore a year ago. Its earnings before interest, tax, depreciation and amortization (EBITDA) or operating profit advanced 8.14 per cent to Rs 7,290 crore from Rs 6,741 crore.

SAIL's net profit in the second quarter of the current financial year jumped a whopping nearly 10 times to Rs 4,339 crore from Rs 436.52 crore in the same period last year.

The domestic steel giant has also reduced its gross borrowings by Rs 12,872 crore to Rs 22,478 crore in the first half of the financial year. SAIL's board announced an interim dividend of Rs 4 per share for the current financial year. 

Steel Authority of India Limited (SAIL) is one of the largest steel-making companies in India and one of the Maharatnas of the country’s Central Public Sector Enterprises. It produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials.

At 12.30 pm on Monday, the stock had pared some of its gains and was seen trading at Rs 125.95 per share, up by 9.52% or Rs 10.95 per share on BSE. The 52-week high was recorded at Rs 151.10 and the 52-week low was Rs 33.45 on the BSE.