By Nigel D'Souza, CNBC-TV18
Steel Authority Of India Ltd (SAIL) is to announce its fourth quarter results. According to CNBC-TV18’s net sales are seen up 10% at Rs 13120 crore versus Rs 11943 crore, year-on-year (YoY).
EBITDA is seen up 2% at Rs 2278.1 crore versus Rs 2143.9 crore.
EBITDA margins seen at 16.7% versus 18%.
The company’s PAT is seen down 17.4% at Rs 1265 crore versus Rs 1530.6 crore.
Keep an eye out for write Back of Forex Loss as rupee slightly strengthened in Q4FY12
In Q3FY12, PAT was hampered due to forex loss of Rs 466.3cr
Taking the total notional loss for 9 mnths to Rs.986.7cr..part of this is likely to get reversed in Q4FY12
Sales volume is expected to increase 23% QoQ and up 2% y-o-y to 3.2m tons in a seasonally strong quarter
In Jan-Feb 12, SAIL had sold approx 2m tons
Avg realization expected to come in up 1-2% q-o-q basis and up 6% y-o-y
Domestic steel pricing showed an uptrend in 4QFY12 as long and flat prices increased by 5% and 2% QoQ respectively
Avg Realizations upside will be restricted on account of higher percentage of semis in the sales mix
EBITDA to improve sequentially(Margins to expand in absence of forex loss)
EBITDA margins are likely to remain flattish sequentially
EBITDA/t is expected to increase to USD 132 on account of better realisations, higher volume and low cost of raw material
Employee costs will rise QoQ led by wage hike provision for 50% of employee cost
Expect a reversal of MTM forex loss to the tune of Rs 400 crore
EBITDA/ton was suppressed in 3QFY12 due to forex loss of INR4.7b on deferred payments for imported input
Power and fuel expenses are expected to remain at elevated levels till the coke oven batteries at Bhilai restart
PAT: Other income to decline on lower cash and cash equivalent levels