SAIL: Saleable Steel Production at 3.3 MnT in Q3 FY17

SAIL in its quarterly results announced yesterday reported saleable steel production of 3.3 MnT in Q3 FY17, up 10% Y-o-Y. Company’s saleable steel sales in the same period climbed 13.8% Y-o-Y to 3.3 MnT in Q3 FY17. During Apr-Dec’16, SAIL saleable steel production stood at 10.2 MnT and saleable steel sales recorded at 9.7 MnT.

SAIL financial performance highlights in Q3 FY17 – Company’s standalone net loss was recorded at INR 795 crore in Q3 FY17. And its EBITDA in the same period stood at INR 26 crore.

SAIL Production Performance Highlights in FY17:

Fig in MnT
Source: Company Reports

SAIL conducted investors conference call for its Q3 FY17 results today (i.e. 10 Feb’17). SteelMint learned following facts from the investor conference call:

Higher global prices have presently made Anti-Dumping duty less effective-In present scenario, provisional Anti-Dumping duty is not much helpful as HRC/CRC prices in global market are quite high. Thus imported HRC/CRC cost to India are high enough than Non Injurious Price (NIP) decided in Anti-Dumping duty.

Domestic flat steel prices under pressure over dull demand – India’s domestic steel demand continues to remain weak. This has led steel makers to offer flat steel products at discounted prices. After sharp hike of INR 3,000/MT in flat steel products in Jan’17, prices have come down in traders market. However some steel makers have rolled over prices for Feb’17 others are likely to offer material in discounted rates. Realizations in exports continues to remain low.

Coal consumption cost to remain stable in Q4 FY17 – SAIL expects its coal consumption cost to remain stable at around INR 13,000-13,100/MT in Q4 FY17. In Q3 FY17, the same stood at INR 13,200/MT.

SAIL’s steel production target at 14.3 MnT in FY18 – SAIL plans to achieve crude steel output of 12-12.5 MnT in current fiscal. The steel maker has set target of crude steel production of 14.3 MnT for FY18.