Steel Authority of India (SAIL), largest state-owned steel maker in India reported a fall of 17.91% in consolidated net profit to Rs 6.96 billion for the quarter ended June 30, 2012 as compared to Rs 8.48 billion in the same period last year. Earnings performance of the company was below market estimates of Rs 9.87 billion. This was primarily due to foreign-exchange loss of Rs 2.57 billion during the quarter.
Total income has decreased by 1.50% to Rs 107.78 billion for the quarter ended June 30, 2012 from Rs 109.42 billion in the year ago period.
Net sales of the company decreased by 1.71% to Rs 106.41 billion for the quarter ended June 30, 2012 as compared to Rs 108.26 billion in the same period last year. Net sales of the company was below market estimates of Rs 118.09 billion.
Bhavesh Chauhan, Research Analyst-Angel Broking, said, ''SAIL's top-line and bottom-line came below our expectations on account of lower than expected sales volumes. Adjusted PAT was lower by 12% than our estimate. Going forward, the benefits of capacity expansion are likely to be witnessed only from FY2014. On account of rich valuations, we maintain our Neutral view on the stock.''
Shares of the company gained Rs 1, or 1.18%, to trade at Rs 85.75. The total volume of shares traded was 945,116 at the BSE (2.28 p.m., Monday).
Steel Authority Of India Limited (Q,N,C,F)*