IDBI Capital: High Fixed Costs Hits SAIL’s Q1 Profitability
Sparks fly inside the blast furnace unit at the SAIL plant in Rourkela, Odisha. (Photographer: Dhiraj Singh/Bloomberg)

IDBI Capital: High Fixed Costs Hits SAIL’s Q1 Profitability

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Research

Steel Authority of India Ltd.’s Q1 FY21 net sales was in-line with street estimate while its net loss was lower than street forecast.

Its net sales fell 39% YoY to Rs 91 billion.

Although its operations resumed in second half of the quarter with limited workforce and disrupted supply chain, the imposed restrictions adversely impacted its sales volume and realization in Q1 FY21.

Volumes declined 32% YoY to 2.2 million tonnes and realization fell 10% YoY to Rs 41,216/tonne.

SAIL’s Ebitda loss stood at Rs 4 billion due to sharp fall in net sales. The Company reported a net loss of Rs 13 billion in Q1 FY21.

Click on the attachment to read the full report:

IDBI Capital SAIL Q1FY21 Result Update.pdf

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