Indian steel giant SAIL has reported its financial numbers today for Q1 FY17 ended on 30 Jun’16. Although company’s stand-alone losses have widened to about INR 535 crore in Q1 FY17, its EBDITA (Earnings Before Depreciation Interest Tax and Amortization) became positive after four consecutive losses.
Despite, achieving quite lower EBDITA as compared to its peers, the company managed to turn positive in first quarter of 2016-17 due to higher per tonne sales realizations and lower raw material costs.
But another major concern for the company that can’t be overlooked is its huge losses at net level thus indicating high debts on its balance sheet.
The company’s sales volumes have declined by 26% Q-o-Q basis and is recorded at 2.8 MnT for Q1 FY17. The company has set up a sales target of 15 MnT for FY17 which would require it to achieve sales of 3.9 MnT in next three quarters.
The trade restrictions on imports coupled with positive demand outlook and good monsoons may support the company to achieve its target.
SAIL’s Performance Analysis
|
Particulars |
Q1 FY 17 | Q4 FY16 | Change Q-o-Q | Q1 FY16 |
Y-o-Y Change |
| Sales | 2.8 MnT | 3.8 MnT | 26.3% | 2.7 MnT | 3.7% |
| EBDITA/Tonne | INR 835 | (INR 2,957) | – | (INR 301) | – |
| PAT | (INR 5.4 Bn) | (INR 11.1 Bn) | – | (INR 3.2 Bn) | – |
Source: SAIL
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