State-owned steel company Steel Authority of India (SAIL) is expected to reduce its Q3 loss to Rs 850 crore from Rs 1,529 crore in year-ago quarter. EBITDA loss, higher interest cost and higher depreciation costs may hit bottomline.
Revenue during the quarter is likely to increase 26 percent year-on-year to Rs 11,300 crore, aided by higher volumes and realisations YoY & QoQ, according to analysts polled by CNBC-TV18.
Capacity addition & lower imports may drive sales volumes to 3.3 million tonnes, a growth of 10 percent YoY (but down 7 percent QoQ).
Operating loss is expected to be at Rs 14 crore against loss of Rs 1,380 crore on yearly basis due to increase in coking coal prices and impact of demonetisation on volumes.
Key issues to watch for would be commissioning of ISP and Bhilai capacity expansion.
The stock doubled in past one year, up 52 percent from demonetisation lows in November 2016.
Analysts expect some surprise in earnings, especially after stellar performance by JSW Steel and Tata Steel.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
