Steel Authority of India Ltd's Q3FY19 standalone net profit rises 795% yoy to Rs631cr : Misses Estimates

The company’s standalone revenue stood at Rs15,836cr, up 3.3% yoy but down 5.3% qoq

Feb 07, 2019 09:02 IST India Infoline Research Team

Steel Authority of India Ltd Q3FY19

Standalone Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 15,836 3.3
EBITDA 2,578 79.0
EBITDA Margin (%) 16.3 688
Net Profit (adjusted) 631 794.5
***EBITDA margin change is bps

SAIL Ltd missed estimates for Q3FY19 by a significant margin after raw material costs came in much higher than expected. Revenue grew by 3.3% yoy to Rs15,836cr (expectation Rs19,037cr). EBITDA stood at Rs2,578cr, up 79% yoy against estimates of Rs2,788cr. EBIDTA margin rose by 688bps yoy to 16.3%. Adjusted Net Profit stood at Rs631cr in Q3FY19 against an expectation of Rs853cr.
  • Saleable steel production for the quarter stood at 3.8mn tonnes, up 5% yoy.
  • EBITDA per tonne for the quarter stood at ~Rs6,800 per tonne. This represents an increase of ~Rs2,800 per tonne over Q3FY18.
  • Gross margin stood at 60.5% in Q3FY19 against 51.1% in Q3FY18 and 54.9% in Q2FY19.
  • During the quarter, the company saw its BF productivity improve by 16% qoq.

Technical View:

Steel Authority of India Ltd is currently trading at Rs. 48.60, up by 1.25 points or 2.64% from its previous closing of Rs. 47.35 on the BSE.
The scrip opened at Rs. 47.80 and has touched a high and low of Rs. 49.10 and Rs. 47.05 respectively. So far 1,48,74,328 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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