SAIL Q3 Review - Profitability Strong; Leverage Falls: IDBI Capital
A red hot steel slab passes along a rolling machine at the Steel Authority of India Ltd. Rourkela Steel Plant in Odisha. Photographer: Dhiraj Singh/Bloomberg

SAIL Q3 Review - Profitability Strong; Leverage Falls: IDBI Capital

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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, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

Steel Authority of India Ltd. reported remarkable turnaround in its profitability for Q3 FY21, beating our and street profitability forecasts.

Its Ebitda/tonne jumped four times YoY to Rs 12,235 as realization increased 11% YoY to Rs 44,737/tonne.

Its Ebitda increased nearly four times YoY to Rs 51 billion led by higher realizations and lower coking coal costs.

Interest cost decreased by 21% YoY to Rs 6.7 billion. Net profit was lower than our forecast by 37% at Rs 13 billion due to higher than expected tax rate at 65%.

Click on the attachment to read the full report:

IDBI Capital SAIL Q3FY21 Result Update.pdf

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