SAIL Q4 net down 72% on higher interest cost

Moneycontrol Bureau

State run Steel Authority of India's (SAIL's )  March quarter profit declined 72 percent year-on-year to Rs 477 crore on higher employee cost which went up 36 percent to Rs 2473 crore. Total Income also de-grew 11 percent YoY to Rs 12330 crore.

Even interest cost almost doulbed to Rs 215 crore from Rs 212 crore YoY.
Other factors that contributed to lower profit include power and fuel cost which climbed 4 percent to Rs 1218 crore. Forex gain was also down 98 percent to Rs 16 crore along with an 7.6 percent rise in other expense.
Net sales realisation also declined to Rs 34489/tonne as against 38717/tonne YoY.
The company also witnessed flattish growth in saleable steel volume at 11. 1 million tonnes.
Earnings before interest, tax, depreciation and amortization (EBITDA) also declined to Rs 924 from Rs 1576 crore YoY.
Post earnings announcement, SAIL shares declined marginally to Rs 59.85 despite a dent in earnings. Read This: Go long in SAIL, resistance at Rs 65-66: Siddharth Bhamre