CARE reaffirms 'AA 'credit rating on Steel Authority of India's long-term bank facilities

CARE Ratings Limited has reaffirmed the credit ratings for Steel Authority of India Limited (SAIL), highlighting the company's strong market position and robust domestic demand. SAIL's long-term bank facilities have been rated CARE AA; Stable, with an increase to ₹14,100 crore from ₹10,500 crore, the ratings agency said. SAIL's short-term bank facilities have been rated CARE A1+, now enhanced to ₹39,000 crore from ₹35,000 crore, the agency added

SAIL's reaffirmed ratings underscore its status as a 'Maharatna' company, with a 65% stake held by the Government of India. This ownership structure provides SAIL with significant advantages in procuring contracts and raising finances at competitive rates. The company's established position as a leading steel producer with access to captive iron ore mines across Jharkhand, Odisha, and Chhattisgarh further strengthens its operational capabilities

Despite a decline in net sales realisations, SAIL reported a 5% increase in saleable steel volumes, reaching approximately 17.02 million tonnes per annum in FY24. The company's total operating income for FY24 was ₹1,05,375 crore, a slight increase from the previous fiscal year. The profitability of SAIL was impacted in FY23 due to high coking coal prices; however, a moderation in raw material prices and strong domestic demand helped maintain a PBILDT per tonne of ₹6,579 in FY24, up from ₹4,970 in FY23