SAIL reported operationally muted set of numbers for Q4FY23
Q4FY23 Earnings Summary
For Q4FY23, SAIL reported sales volume of 4.7 Million Tonnes (MT), up 13% QoQ, however flattish YoY, broadly in line with our estimate of 4.7 MT. Standalone Topline for the quarter stood at Rs 29131 crore, down 5% YoY, however up 16% QoQ (our estimate of Rs 26031 crore)
Standalone EBITDA for the quarter stood at Rs 2914 crore, down 33% YoY, however up 40% QoQ, albeit lower than our estimate of Rs 3408 crore. Standalone EBITDA margin for the quarter stood at 10.0%, lower than our estimate of 13.1% . Standalone EBITDA/tonne for the quarter stood at Rs 6226/tonne, lower than our estimate of Rs 7250/tonne
The ensuing standalone PAT for the quarter stood at Rs 1049 crore, lower than our estimate of Rs 1281 crore
ICICIdirect Research view on Steel Authority of India Ltd Stock
View: Domestic steel demand registered a healthy growth during FY23 which augured well for SAIL. Apparent steel consumption in India was up 14% on a YoY basis in Q4FY23 and was up 13% on YoY basis for FY23. Also, the recent softening trend in coking coal prices augurs well for the company, however the benefit of lower coking coal prices is likely to come with a lag of one quarter as steel players generally carry couple of months of inventory.
Impact: Negative
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