SAIL Q3 Losses Down at 795 cr On Higher Sales
Kolkata: Steel Authority of India (SAIL) narrowed losses in the third quarter, led by higher sales volumes.
The net loss was .₹ 795 crore in the three months ended December compared with a loss of .₹ 1,481 crore a year earlier, India’s largest state-owned steel producer said in a statement. Analysts in an ET Now survey had expected a net loss of .₹ 880 crore. Income from operations increased 25% to .₹ 12,620 crore.
SAIL shares fell 1.2% to Rs 65.90 at the close on the BSE on Thursday, before the results were announced. “The company’s earnings before interest, tax, depreciation and amortisation margin, which is a better parameter for judging performance of steel companies, actually went down during the third quarter this year as compared to the second quarter this year,” said Gautam Chakraborty, analyst - institutional research (metals & mining) at Emkay Global Financial Services in Mumbai. “In the fourth quarter, coking coal costs are likely to add to the pressure on its margins.”
During the third quarter, high global prices of metallurgical coal affected SAIL’s margins sharply, along with rising interest and depreciation charges from recent modernisation initiatives.
“A sharp rise in prices of imported met coal during Q3 this year impacted margins, although we continued to adopt well chalked-out cost-reduction strategies,” SAIL chairman PK Singh said. “We aim to improve our market share with improvement in share of value-added products.”
Sales increased 12.5% to 3.27 million tonnes in the quarter and 16% to 9.66 million tonnes in the April-December period.