SAIL Q3 PAT may dip on weak pricing, higher staff cost

Moneycontrol Bureau

Steel Authority of India (SAIL) is likely to see a fall in December quarter profit due to weak pricing and higher staff cost, say analysts. However, sales may improve marginally, as demand picked up towards the end of the quarter.
The company will announce third quarter earning numbers later in the day.
According to CNBC-TV18 poll estimates, net profit of the state firm may decline 7.9% to Rs 582 crore, year-on-year due to lower realisation partly offsetting lower coking coal price.
Sales are likely to go up 4.3% to Rs 11050 crore, year-on-year according to the poll. EBITDA (earnings before interest, tax, depreciation and amortization) is likely to be down 23% to Rs 1112 crore, YoY. Did you read: SP Tulsian negative on SAIL The company may have a forex loss as the rupee remained weak throughout the quarter. With an inventory of 1 metric tonnes, it is critical for SAIL to clear backlog in the current quarter, say brokerages.
According to brokerage KR Choksey, SAIL's Q3 profit is likely to decline 37%, YoY to Rs 690 crore but sales may go up 5% to Rs 11255 crore on improved demand.. EBITDA could be under pressure due to higher operating cost.
Karvy Broking also expects company profits to plunge around 26% to Rs 469 crore,YoY but sales may marginally grow to Rs 10868.4 crore,YoY, states the firm which expects steel demand to improve in Q4, which is traditionally the strongest quarter.
Prabhudas Lilladher expects sales to grow 4% to Rs 11015 crore and net profit to decline 37% to Rs 438 crore as realisation per tonne is likely to slip 2.7% .