New Delhi [India], August 11 (ANI): State-owned steel producer Steel Authority of India (SAIL) recorded a sharp fall in its profits during the first quarter of the current financial year 2022-23 (April-June).

During the quarter, the company's profit after tax declined to Rs 776 crore from Rs 3,850 crore reported same period last financial year. The decline in profits in terms of percentage was almost 80 per cent.

SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India.

On the other hand, the company's revenue from operations during the first quarter grew 16.4 per to Rs 24,029 crore as compared to Rs 20,642 crore during the same period last financial year, data showed on Thursday.

The first quarter of 2022-23 saw twin challenges of higher input costs and subdued market demand, both global and domestic, impacting the performance of the company, an official statement said.

"High cost of production due to increase in imported coking coal prices had an impact on the bottom-line of the company. The decline in global demand and prices for steel had a direct bearing on the domestic market and price realisation," the statement added.

Since peaking in April, the prices for steel have continuously remained under pressure during the quarter.

The construction and infrastructure projects, the company said, have gained momentum which will boost the demand for steel products.

The company is confident of improved performances in the second half of the current financial year with a significant reduction in prices of imported coal and an uptick in demand, the statement added. (ANI)