SAIL stock under scrutiny after a 22% drop in Q3 earnings

SAIL stock under scrutiny after a 22% drop in Q3 earnings

While SAIL declared an exceptional profit of Rs 298 crore in Q3FY23, its profit decreased by 22% year over year.

The previous six months have seen a more than 40% surge in SAIL shares.

Focus will be on Steel Authority of India (SAIL) shares on February 13 after the state-owned steelmaker's announcement of a consolidated net profit of Rs 423 crore for the fiscal year that runs from October to December of 2024.

result on a high base decreased by 22% year over year in Q3FY23, notwithstanding an exceptional result of Rs 298 crore. Operating revenue for the quarter was Rs 23,349 crore, a 6.8% decrease from the previous year.

On February 12, SAIL's stock ended the day more than 76.3% down at Rs 123.45 on the NSE. Amarendu Prakash, the chairman, said, "Despite the substantial decrease in value realization during the quarter, the company's constant efforts towards increasing its volumes were successful in having a positive impact on the financial performance."

income from SAIL's Bhilai facility saw a 12.1% fall to around Rs 6,500 crore, but income from its Bokaro and Rourkela plants was Rs 6,003.6 crore and Rs 5,863.3 crore, respectively.

Production of crude steel was 4.75 million tonnes during the quarter, compared to 4.71 million tonnes the previous year. At the same time, sales volume decreased to 3.81 million tons from 4.15 million tonnes.

Additionally, the public sector company announced an interim dividend of Rs 1 for every Rs 10 equity share. February 20 is the record date for interim periods dividend payment.

While FII and DII have stakes of 4.3% and 15.5% in SAIL, respectively, the Center holds around 65% of the company. As of the quarter ending in December 2023, Life Insurance Corporation of India is the DII with the largest share in the business at 9.2 percent. The public owns the remaining 15.2 percent of the corporation.

SAIL shares have increased by more than 40% over the last six months, compared to a 12% return for the leading index Nifty 50.