SAIL’s Third Quarter Loss Lower Than Analyst Estimates
SAIL reported a net loss of Rs 794.8 crore in the third quarter of FY17.
State-owned Steel Authority of India Ltd. (SAIL) surprised the Street with a net loss of Rs 794.8 crore in the October-December quarter, lower than analyst estimates.
A Bloomberg consensus of analyst estimates had pegged the loss at Rs 918.2 crore. The steel manufacturer had reported a loss of Rs 1,481.1 crore in the corresponding quarter of the last financial year.
Net sales after excise duty rose 26 percent to Rs 11,687 crore from Rs 8,805.5 crore in the same quarter last year, the company said in a stock exchange filing.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at a loss of Rs 42.8 crore compared to a loss of Rs 1,155.7 crore year-on-year.
India stepped up curbs on steel imports from China, the world's top producer, to combat a rising tide of cheap shipments and aid local producers. The improvement in the prices of steel and increased sales volumes suggest the worst is behind for SAIL, JPMorgan said in a note dated January 9.
Earlier this week, rival Tata Steel posted a profit after a lull of four quarters, helped by strong performance in its Indian business, pick-up in demand and higher pricing.
