SAIL Q1 result preview: PAT expected to decline 71%; revenue to rise 1.3%

Steel Authority of India or SAIL is expected to announce its June quarter numbers (Q1FY24) on Thursday, August 10. Ahead of the result announcement, shares of SAIL traded 0.41 per cent lower on BSE at Rs 92.24 apiece, declining for the second straight session.

SAIL Q1 preview

As per Zee Business research, the state-run steel producer is likely to post a profit after tax (PAT) of Rs 236 crore against Rs 804 crore registered a year ago, down 71 per cent. This decline can be attributed to lower volumes and increased input costs.

The company is expected to log revenue of Rs 24,344 crore, a 1.3 per cent rise as compared to Rs 24,029 crore seen in the year-ago period.

The earnings before interest, taxes, depreciation, amortisation, or EBITDA, is expected to come in at Rs 1,840 crore, compared to Rs 2,301 crore a year ago, down 20 per cent. The company's margin, a key measure of profitability for a business, may decline by 240 basis points (bps) to 7.6 per cent YoY against 10 per cent in the corresponding quarter of the previous year.

The research desk further said that some brokers are predicting that the company can incur a loss in the June quarter.

SAIL Q4 results 

SAIL posted over a 50 per cent fall in its consolidated net profit to Rs 1,159.21 crore for the quarter ended March 31, dragged down by lower income. The company's sales were down at 4.68 MT, as against 4.71 MT in January-March FY22.

SAIL share price: Historic performance

So far in 2023, shares of SAIL have risen over 3 per cent against the Nifty's rise of over 7 per cent.

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