More Stories

Informist, Monday, May 26, 2025

By Ashutosh Pati

MUMBAI – State-owned Steel Authority of India Ltd. is expected to report a strong performance in the March quarter, with its bottom line rising dramatically from the previous quarter due to low coal prices. Strong volume growth will guide the top line of the company.

The company is expected to post a net profit of INR 6.96 billion, up a whopping 453% sequentially, according to an average of estimates from 15 brokerage firms. However, the net profit is expected to be down over 31% on year. Brokerage Emkay Global Financial Services Ltd. gave the lowest estimate for the company's net profit of INR 4.58 billion, while Kotak Institutional Equities gave the highest estimate of INR 8.61 billion.

SAIL is expected to have earned a revenue of INR 269.77 billion in the March quarter, according to the average of estimates from 15 brokerages. The revenue is seen rising over 10% from the previous quarter, but down 3.5% on year. Brokerage firm Systematix Shares and Stocks (India) Ltd. gave the lowest estimate for the company's revenue at INR 244.30 billion, while Motilal Oswal Financial Services Ltd. gave the highest estimate of INR 292.20 billion.

The steel behemoth's earnings before interest, tax, depreciation, and amortisation for the March quarter are pegged at INR 27 billion, up 13% sequentially but down nearly 30% on year, according to the average of estimates from 13 brokerage firms. Estimates for the company's EBITDA range from INR 23.95 billion to INR 28.88 billion.

In the December quarter, the company's revenue had risen only 5% despite a 13% on-year rise in steel sales volume due to a fall in its net sales realisation amid a sharp fall in steel prices. In a conference call with investors after the December quarter earnings, SAIL's management had said that the company was focusing on improving the product mix to raise the net sales realisation. However, analysts expect the steel major's sales realisation to be lower in the March quarter.

Elara Securities (India) Pvt. Ltd. and Nuvama Wealth Management Ltd. expect the steel major's net sales realisations to decline by INR 300 per tonne and Axis Ltd. also sees a fall. Equirus Securities Pvt. Ltd. expects realisations to remain flattish sequentially as price hikes in flat steel were towards the end of March. In contrast, Kotak Institutional Equities estimates steel realisations to increase by 0.6% sequentially on the back of improvement in hot rolled coil prices during the quarter.

Elara Securities said that domestic hot rolled coil prices declined around 9% on year but showed a rebound of around 2% sequentially in the March quarter after seven consecutive quarters of decline. Similarly, the brokerage said that cold rolled coil prices were down 10% on year but rose 1% sequentially, after falling for the past four consecutive quarters.

Axis Securities said that during the quarter ended March, hot rolled coil prices fell 11% on year and 1% from the previous quarter.

The company will detail its earnings Wednesday. Post the results, according to Motilal Oswal, investors will await the management's commentary on domestic and international steel prices, and capex. Management guidance on the debt reduction road map will also be monitored, the brokerage said.

Monday, shares of the company closed 1.5% higher at INR 127.79 on the National Stock Exchange. Since reporting its December quarter earnings on Feb. 11, shares of the company have risen nearly 28%.

Of the 12 brokerage reports on the company available with Informist, three have a ‘buy' rating on the stock, six have a 'hold' rating, and three have a 'sell' rating. Among the 12 brokerages, the highest target price was given by Axis and Motilal Oswal at INR 130 and the lowest was given by ICICI Securities at INR 100.

Following are the Jan-Mar standalone earnings estimates for Steel Authority of India based on reports compiled by Informist from 15 brokerages in descending order of estimate of net profit:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.