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

on pricing despite safeguard duty resulted in SAIL seeing operating losses for a second consecutivequarter.Lowerdemand,plantshutdown,andpricingpressuressawfinishedand semifinished inventory balloon (3.1mn tonnes vs. sales of 2.73mn tonnes). While the...

Steel Authority of India Ltd (SAIL) posted numbers, which were below our as well as street estimate on all counts. The company reported a second consecutive loss on the EBITDA front which widened further. Revenue at Rs93bn fell ~21% yoy and 3% qoq as against our estimate of Rs97bn. The company reported an EBITDA loss of Rs10.5bn (Rsec estimate loss of Rs1.2bn). PAT loss at Rs10.6bn was higher than our estimate of a loss of Rs4.8bn. This steep fall in PAT was due to EBITDA loss along with lower other income, higher depreciation and increased interest costs on the back of capitalization of new facilities. PBT loss was even higher at Rs18.2bn. Realizations at Rs34,285/...

Steel Authority of India Ltd (SAIL) posted numbers, which were below our as well as street estimates on all fronts. Revenues at Rs95bn fell ~16% yoy and 18% qoq as against our estimate of Rs102bn. The company reported an EBITDA loss of Rs817mn (Our estimate of a profit of Rs4bn). It must be noted that loss at the EBITDA level was the first in over a decade. PAT loss at Rs3.2bn was higher than our estimate of a loss of Rs2bn. This steep fall in PAT was due to EBITDA loss along with lower other income, higher depreciation and increased interest costs on the back of capitalization of new facilities. PBT loss was even higher at Rs7.8bn. Realizations at Rs35,313/tonne fell 14% yoy and 4% qoq,...