Higher Raw Material Cost & Lower Volume Dent Margins Steel Authority of India (SAIL) has reported largely in-line numbers in 3QFY17 with sales volume at 3.3mnT as expected, despite higher-than-expected exports. It posted an EBITDA/tonne loss of Rs130 (lower than our estimate of Rs185 loss) with the usage of domestic coking coal rising to 20% in 3QFY17 from 14% in 3QFY16. Further, lowcost coking coal inventory led to decline in average cost of coking coal to Rs13,195/ tonne vs. international comparative cost of ~Rs 15,000/tonne assuming the same blend. Realization rose by 11% YoY and 9% QoQ to Rs34,237/tonne (vs. our estimate of Rs34,747) due to higher share of exports in the overall sales-mix. However, with an...