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India's steel giant SAIL seeks price hike for rails supplied to railways

Steel Authority of India Ltd (SAIL), India's largest public sector steelmaker, is poised for a potential profit increase if its request for a temporary price hike for rails supplied to the Indian Railways is approved.

India's steel giant SAIL seeks price hike for rails supplied to railways

The company is seeking a provisional price of Rs 67,500 per tonne for rails for the last fiscal year (2022-23) and the first half of the current fiscal year (April-September).

SAIL plans to obtain a provisional price hike for 2022-23 before submitting cost data for final price calculation. The company has supplied rails to the Indian Railways in the past, meeting the entire demand for steel rails for decades. SAIL reaffirmed its position as the largest producer of locomotive wheels by supplying 11.70 lakh tons of tracks in 2022-23.

SAIL's strong financial performance in the second quarter (July-September) of the current fiscal is attributed to higher sales volumes, which resulted in a net profit of Rs 1,305.59 billion. This marks a significant turnaround from a net loss of Rs 329.36 crore in the same period last year.

The company's total revenue also increased, rising to Rs 29,858.19 billion from Rs 26,642.02 billion in the year-ago quarter. This growth is expected to continue and potentially further increase profitability if SAIL's price hike request is approved.

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