SAIL Q1 profit seen down 52% on higher input cost: Poll

Amidst a general slowdown and high input cost, Steel Authority of India(SAIL) is expected to report over 53 percent year-on-year decline in profit to Rs 325 crore, states a CNBC-TV18 poll. The state-run steel maker which will announce numbers later in the day is likely to post Rs 10600 crore sales, registering almost muted growth from year-ago period.

Analysts on an average expect EBITDA margins to slide around 500 bps to 8.8 percent Y-o-Y.

These factors will influence SAIL's June quarter numbers.

The firm has reported saleable steel production of 3.2mt, up 7 percent Y-o-Y

Sales volumes likely to grow over 8 percent Y-o-Y to 2.7 MT

Realizations could be lower by 11.5 percent Y-o-Y on account of subdued domestic steel market

Margins are seen improving quarter-on-quarter but may decline Y-o-Y.

PAT is expected to drop on account of:

Lower overall profitability

Higher interest and depreciation costs

Lower other income

Expect forex loss of around Rs 280 crore on account of weak rupee

Key issues to watch out

-Basic oxygen furnace commissioning at Issco Rourkela steel plants will be critical for volume ramp-up in FY14 and FY15

-Railway contract price is expected to be settled in FY14, which is expected to give retrospective benefits.

Read This: SAIL Q1 PAT may fall 44% at Rs 387 cr: Kotak Securities