SAIL Q3 net profit down 34% at Rs 1107 cr

Steel Authority of India, (SAIL) has announced its third quarter results. The company's Q3 net profit was down 34% at Rs 1,107 crore versus 1675 crore, year-on-year, YoY.

Its revenues were up 14.5% at Rs 11312 crore versus Rs.9878 crore. Its OPM was down at 15.9% versus 26.1% Concerns - Lower than expected realisations - Blended realisations decline 2% QoQ - Blended realisations at `35000 - EBITDA/t down 37% at $112/t YoY - EBITDA down on higher raw material costs - Raw material costs up 37% YoY - SAIL bought coking coal at $205/t - Volumes neutralised cost push - Increase in steel volumes up 7% at 3.25 mt QoQ SAIL - Q3FY11 Coking Coal Price - Rise in coking coal a big worry - Coking coal comprises of 42% of operating costs - No captive availability of coking coal - Will impact profitability if coking coal prices increase - Operating cost/t to rise by 0.7% on every $10 hike