SAIL Q1 Review - Biggest Beneficiary Of Improved Pricing: Motilal Oswal
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Motilal Oswal Report
Steel Authority of India Ltd. continues to reap the benefits of higher steel prices as it recorded its highest ever quarterly Ebitda of Rs 65.3 billion (up 7% QoQ), despite volumes declining by 24% QoQ.
Ebitda/tonne was the highest ever at Rs 19,728/tonne.
Net debt declined further to Rs 311 billion (versus Rs 367 billion in March 2021).
We expect SAIL to further reduce its debt by Rs 44 billion to Rs 267 billion at the end of FY22.
We broadly maintain our FY22E/FY23E estimate. We expect the dividend payout to be strong at Rs 10/share in FY22E (~7% yield), based on an expected 25% payout ratio.
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