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SAIL Q1 net loss seen at Rs 80 cr on higher depreciation

Operating profit, during the quarter, is seen falling 51 percent at Rs 550 crore versus Rs 1129 crore while operating profit margin may come in at 5.4 percent against 10 percent, year-on-year. Analysts polled by CNBC-TV18 say weak realisations, higher employee costs and other expenses may hurt margins.

August 14, 2015 / 13:54 IST
     
     
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    Steel Authority of India (SAIL) is expected to post net loss of Rs 80 crore in April-June quarter from a net profit of Rs 529 crore in corresponding quarter last fiscal. Higher depreciation and elevated interest cost are seen hurting the PSU’s earnings, according to a CNBC-TV18 poll. Total income in Q1 may decline 10 percent at Rs 10210 crore compared to Rs 11341 crore on an annual basis.

    Operating profit, during the quarter, is seen falling 51 percent at Rs 550 crore versus Rs 1129 crore while operating profit margin may come in at 5.4 percent against 10 percent, year-on-year. Analysts polled by CNBC-TV18 say weak realisations, higher employee costs and other expenses may hurt margins.

    Lower realisation is due to cheap imports while weak domestic steel demand and higher steel imports have been hampering topline growth. Lower coking coal costs will partly protect the margins.

    However, volumes may inch up by 5 percent to 2.95 million tonnes.

    At 13:00 hrs SAIL was quoting at Rs 55.30, down Rs 0.80, or 1.43 percent on the BSE.(Written by Nasrin Sultana)

    first published: Aug 14, 2015 01:00 pm

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