Steel Authority Of India Q4 Review - Headwinds Pile Up: ICICI Securities
Ingots sit stacked at the Steel Authority of India Ltd. (SAIL) Rourkela Steel Plant in Rourkela district, Odisha. (Photographer: Dhiraj Singh/Bloomberg).

Steel Authority Of India Q4 Review - Headwinds Pile Up: ICICI Securities

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.

ICICI Securities Report

Steel Authority of India Ltd. reported lower than expected Ebitda at Rs 61.5 billion.

Even after adjusting for wage revision provision (long due) from April 01, 2020, Ebitda falls short of estimates. This also leads to increase in employee costs estimates for FY22/23E.

Full year FY21 dividend also falls short of expectations at Rs 2.8/share.

The investment thesis continues to face the dual headwinds of:

  1. higher employee costs and
  2. possibility of higher capex.

Coupled with peak spreads and most of the deleveraging expectations in the price, the investment thesis looks clouded.

Click on the attachment to read the full report:

ICICI Securities SAIL Q4FY21 Results Update.pdf

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