SAIL aims to reduce net debt to Rs 15,000-20,000cr in FY22

India Ltd aims to reduce its net debt to a range of 15,000 to 20,000 crore rupees in the current financial year if prices and demand for the commodity remain stable, a senior company official said on Thursday. . The Maharatna PSU has a net debt of approximately Rs 30,000 crore as of June 30, 2021, compared to Rs 35,350 crore at the end of the previous financial year.

“We are aiming to significantly reduce debt from around Rs 30,000 crore now to anywhere between Rs 15,000 and 20,000 crore, depending on steel prices and the demand situation,” the official said. SAIL President Soma Mondal on the sidelines of the inauguration of MSTC’s new headquarters in New Ville on the outskirts of the city.

She hoped demand would increase in the coming months.

Prices for flat products remain stable, while those for long products are improving, Mondal said.

The major national steelmaker had reduced its net debt from Rs 16,131 crore to Rs 35,350 crore in the 2020-21 financial year.

The company had announced that it would spend Rs 8,000 crore on capital expenditure in the current financial year.

The steelmaker posted a consolidated net profit of Rs 3,897 crore for the April-June quarter of the 2021-22 financial year, compared to a loss of Rs 1,226 crore in the prior year period.

Ann J. Cox