SAIL Q3 Losses Down at 795 cr On Higher Sales

The Economic Times - - Companies: Pursuit Of Profit - Our Bureau

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.

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