SAIL Q4 Review - Biggest Beneficiary Of Improved Pricing: Motilal Oswal
SAIL Q4 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 Q4 FY21 Ebitda grew 21% QoQ, despite a wage revision impact.
In the absence of significant capex, net debt declined further to Rs 366 billion (versus Rs 538 billion in March 2020).
With steel prices at a record high, the company is poised to post its best ever Ebitda/tonne of ~Rs 20,000 in Q1 FY22.
We upgrade our FY22E/FY23E Ebitda estimate by 71%/33% to factor in higher steel prices, and estimate a further Rs 102 billion (Rs 25/share) fall in net debt to Rs 265 billion (one time Ebitda) in FY22E.
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