Steel Authority of India (SAIL) Ltd. share price target

Lower RM cost and higher volume drive EBITDA increase SAIL turned EBITDA positive at INR9.1b in 2QFY18 (7% beat), as against a loss of INR0.8b in 1QFY18, due to lower raw material costs and higher volumes. Interest cost rose 9% QoQ to INR6.4b and depreciation increased 10% QoQ to INR7.6b. Net exceptional charge of INR2.9b pertains to (a) excess mining case in Odisha and Jharkhand of INR3.3b, (b) VRS of INR2.1b and (c) DMF reversal gain of INR2.4b. Adj. net loss reduced from INR7.9b in 1QFY17 to INR3.2b (est. of INR6.6b). Sales grew 17% QoQ (-2% YoY) to 3.5mt. NSR increased just 1% QoQ to...

prices in 1QFY18, we expect its margins to improve with the stabilisation in coking coal prices and lower employee cost, going forward. Notably, SAIL continues to remain mostly exposed to long steel products, where the prices continue to remain volatile due to weak demand scenario and low steel scrap prices. Notebly, SAIL also does not benefit from exports as much as JSW Steel...

Revenue fell by 8.75% to Rs. 11579.56 Cr in Q1FY18 when compared to the previous quarter Revenue fell by 8.75% to Rs. 11579.56 Cr in Q1FY18 when compared to the previous quarter

Revenue grew by 13.63% to Rs. 12690.54 Cr in Q4FY17 when compared to the previous quarter Revenue grew by 13.63% to Rs. 12690.54 Cr in Q4FY17 when compared to the previous quarter

SAIL reported a subdued Q4FY17. The company reported a loss at the EBITDA level on account of elevated operating costs Sales volumes during the quarter came in at 3.45 million tonne (MT), down 9.2% YoY, up 4.5% QoQ broadly in line with our estimate of 3.4 MT. Gross revenues came in at | 14234.18 crore. After adjusting for excise, net revenues were at | 12690.5 crore, up 11.7% YoY, 12.3% QoQ, broadly in line with our estimate of | 12390.1 crore The company reported an EBITDA loss of | 264.4 crore against our...

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...

Revenue grew by 0.81% to Rs. 11168.73 Cr in Q3FY17 when compared to the previous quarter. Also, it rose by 26.84% when compared with Q3FY16.

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...

ICICI Securities Ltd | Retail Equity Research SAIL's Q3FY17 numbers were above our estimates. The better-thanexpected performance was primarily driven by higher-than-expected realisations. Blended realisations increased ~10% QoQ, higher than our expectation of an increase of ~7% Sales volumes during the quarter came in at 3.3 million tonne (MT), up 13.8% YoY, down 8.3% QoQ marginally higher estimate of 3.2 MT. Gross revenues were at | 12619.7 crore. After adjusting for excise, net revenues were at | 11298.2 crore, up 26.4% YoY, 0.6% QoQ and...