The Steel Authority of India (SAIL) is aiming at reducing its net debt to the range of Rs 15,000-20,000 crores if the prices and demand for the commodity remain unchanged, a top company official said on Thursday.
The net debt of the Mahratna PSU was down this year at 30,000 crores from the last fiscal’s 35,350 crores. “We are aiming at reducing the debt drastically from around Rs 30,000 crore to anywhere between Rs 15,000-20,000 crore, depending on steel prices and demand situation,” SAIL chairman Soma Mondal said.
She was hopeful that demand will pick up in the coming months.
Mondal added that the prices of flat products remained stable, while those of long ones are improving.
The domestic steel major had decreased its net debt by Rs 16,131 crore to Rs 35,350 crore during the 2020-21 financial year.
Capital expenditure of around Rs 8,000 crores was announced by the company for the current fiscal year.
The steelmaker posted a consolidated net profit of Rs 3,897 crore for the April-June quarter of the 2021-22 fiscal, as against a loss of Rs 1,226 crore in the year-ago period.