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

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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%.

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