Steel Authority of India (SAIL) Ltd., incorporated in 1973, is a large capitalization company (having a market capitalization of Rs 44630.33 Crore) operating in the sector of metals – ferrous.

Steel Authority of India (SAIL) Ltd. Major products/revenue segments include iron and steel, by-products, other operating revenue and fee for service for the year ending March 31, 2021.

finance

For the quarter ended 31-12-2021, the company reported Consolidated Total Revenue of Rs 25,398.37 Crore, down -5.96% from last quarter Total Revenue of Rs 27,007.02 Crore and up by 27.01% compared to the same quarter of last year Total revenue of Rs 19,997.31 Crore. The company reported a net profit after tax of Rs 1347.30 Crore in the last quarter.

Investment rationale
The brokerage firm expects EBITDA to increase by 15.4% QoQ to ~Rs 39.3 billion, mainly due to higher steel volumes (up 23.8% QoQ to 4.75mt) and lower wage costs (Rs6488/t, down 33% QoQ) as wage negotiations are completed and higher provisioning in the prior quarter. Raw material cost increased by 15% QoQ to Rs33.846/t due to higher cost of coking coal. As a result, EBITDA/t is expected to decline slightly from Rs 603 to Rs 8,279/t.

Promoter/Fii Holdings
The promoters held 65.0% of the company’s capital as of December 31, 2021, while the FIIs held 4.41% and the DIIs 10.51%.