Steel Authority of India Ltd (SAIL) seeks a provisional hike in rail prices from Indian Railways. The company, previously billing at Rs 67,500/tonne, aims for a temporary increase due to higher costs, aiming to negotiate a higher price before submitting its 2022-23 cost data for final calculations, reports The Telegraph.
Steel Authority of India Ltd (SAIL), India's largest public steelmaker, is pursuing a provisional price hike from Indian Railways for its rail supplies. Previously, SAIL invoiced at Rs 67,500 per metric ton for rails in the last fiscal year (2022-23) and the initial six months of the current fiscal year.
Anil Tulsiani, SAIL's director of finance, informed analysts about the company's intention to seek an ad hoc increase in prices for the previous fiscal year and the ongoing one, citing higher operational costs. The final price in FY22 stood at Rs 85,300/ton.
The company anticipates a challenge in obtaining a lower price than Rs 85,300/ton, considering the current fiscal's substantial increase in operational expenses, particularly in coal costs.
SAIL, a longstanding supplier of steel tracks to Indian Railways, provided 11.70 lakh metric tons of tracks in 2022-23 and remains the principal loco wheel producer, boasting an installed capacity of 20 million metric tons per annum.
For the July-September quarter, SAIL reported a consolidated net profit of Rs 1,305.59 crore, a significant upswing attributed to increased sales volumes leading to augmented income, a marked improvement from the Rs 329.36 crore net loss incurred during the same period the previous year.
Total income during this quarter surged to Rs 29,858.19 crore from Rs 26,642.02 crore in the corresponding period last year.
SAIL's request for a provisional rail price hike reflects its efforts to accommodate increased operational costs. The company's robust performance in sales led to a notable profit surge in the recent quarter, prompting its appeal to Indian Railways for a provisional price increase, aiming to align prices with escalating costs.