SAIL Q3 FY20 Results: Key Takeaways

Indian govt owned SAIL (Steel Authority of India limited) has recently announced financial and operational results for Q3FY20. Company's export volumes stood at 0.356 MnT in Q3FY20 and the company is eyeing to export around 0.5 MnT of finished steel in Q4. On a monthly basis company usually export 0.17 MnT to overseas market.

Below mentioned are key highlights of today's investor's conference call:

1.Crude steel production moved up by 3% in Q3 FY '20- On a quarterly premise, the company's crude steel production inched up by 3% to 4.022 MnT in Q3 FY'20 as compared with 3.891 MnT in the previous quarter.

During 9M FY '20 (Apr-Dec'19), the company's crude steel production inched down by 1% and aggregated to 11.842 MnT as compared with 11.928 MnT in the similar time frame of FY' 19.

2.Hot metal production rose by 3% in Q3 FY '20- The manufacturer churned out 4.315 MnT of hot metal in Q3 FY'20 up by 3% in comparison with 4.201 MnT in the last quarter.

During 9M FY '20 (Apr-Dec'19), the company's hot metal production summed up to 12.838 MnT, largely stable as against 12.842 MnT in 9M FY'19.

3. Saleable steel production grows by 9% in Q3 FY '20- The company's saleable steel production witnessed an ascension of 9% in Q3 FY '20 and stood at 3.891 MnT over 3.563 MnT in Q2 FY '20.

During 9M FY '20 (Apr-Dec'19) , the company's saleable steel production stood at 11.107 MnT, inched up by 1% as compared to 10.946 MnT in the corresponding period of FY' 19.

4.Saleable steel sales surged 30% in Q3 FY '20- Company's saleable steel sales stood at 4.090 MnT in Q3 FY' 20 went up significantly by 30% as compared to 3.148 MnT in the previous quarter.

During 9M FY '20 (Apr-Dec'19), the company's saleable steel sales increased by 5% to 10.487 MnT, which was 9.983 MnT in the 9M FY'19.

5.Company's finished steel inventories fall in this quarter- Company's finished steel inventories stood at 1.3 MnT this quarter which was 1.9 MnT towards end of Q2FY20.

6.Company maintained its sales guidance for FY20-21- SAIL in its conference call mentioned that company is targeting sales guidance of 16 MnT in FY20-21 depending on market conditions. In 9 M FY20, company recorded sales of 10.5 MnT.

7.Company's EBITDA declined by 10% Q-o-Q- The company's EBITDA tumbled by 10% to INR 1,184.00 Cr in comparison with INR 1,322.00 Cr in the previous quarter.

During the first nine months (Apr-Dec) FY '20, the same slashed to INR 4,267.00 Cr in contrast with INR 7,806.00 Cr in the corresponding months of FY' 19.

8.Net sales realizations increased in Q3- Company's net sales realization of finished steel stood at INR 37,382/MT in Q3 which was INR 35,310/MT in previous quarter. Also, company raised flat steel prices by around INR 3,000/MT and long steel prices by around 3500-4000/MT in Jan-Feb'20.

9.Coking coal imports in 9MFY20-Company imported almost 11.3 MnT of coking coal in 9MFY20. Apart from this, it sourced 1 MnT was also sourced from BCCL .Also offer for imported coking coal is likely to increase in Q4.

10.Company is planning to supply rails this year- Company is planning to supply 13 lakh tonnes of rails to Indian railways this year.

11.Techno economic parameter- Coke rate stood at 460 kg/thm in 9MFY20. Meanwhile BF productivity stood at 1.75 T/m3/Day in 9MFY20.

12.Facilities at BSP likely to be completed by FY20- SAIL,Bhilai steel plant expansion plans for FY 19-20 are -converter- 3, LF -3, Argon Rinsing Station-3 in SMS -3.