Despite higher-than-expected exports, Steel Authority of India (SAIL) has reported largely inline numbers in 4QFY17 with its sales volume coming in at 3.45mnT vs. our estimate 3.6mnT. Its reported EBITDA/tonne loss stood at Rs767 vis--vis our estimate of Rs1,100 (loss) largely due to lower employee cost. Due to lower base with Voluntary Retirement Scheme (VRS) and usual superannuation of employees, SAIL's staff cost surprisingly declined by 13.3% YoY and 15% QoQ to Rs6,039/tonne. Realization rose by 23% YoY and 8% QoQ to Rs36,827/tonne (vs. our estimate of Rs36,437) due to higher share of value-added products in overall sales-mix. Looking ahead, though we expect SAIL to start reporting stronger numbers, it seems to have been priced in. Rolling over our estimates to FY19E, we upgrade our recommendation on...