Anticipating a strong performance by SAIL in Q2, its stock price has jumped 60 percent in the last one month versus a mere 7 percent rise in S&P BSE Sensex. On October 3, SAIL's stock price jumped 8.64 percent to Rs 86.75, extending its 36% rally of the past two weeks on the BSE, ahead of its September (Q2FY18) results next week. Currently, the stock is trading at its highest level since December 4, 2014.
SAIL's board of directors is scheduled to meet on Thursday, November 9, 2017, to consider the un-audited financial results of the company for Q2FY18.
In Q1FY18, the company had reported a standalone net loss of Rs 801 crore against the loss of Rs 536 crore in the same quarter a year ago.
Brokerage firm Emkay Global Financial Services expects that SAIL may report lower net losses of Rs 149 crore in Q2FY18 against Rs 567 crore in the same quarter in FY17. The company may report Ebitda (earnings before interest, tax, depreciation, and amortization) profit of Rs 1,059 crore against Rs 112 crore in the previous year quarter.
"We are expecting positive EBITDA/TN at Rs2870/tn (vs loss in Q1FY18). Sales volume is likely to improve by 22% QoQ to 3.69mt and realization by Rs 2400/tn (qoq). Raw material and employee costs are likely to decrease on per tonne basis by 13% and 7% QoQ, respectively," the brokerage firm said in Q2FY18 results preview.
Edelweiss Securities expects the company to turn profitable at EBITDA level as the share of semis is expected to go down and the volume is expected to go up.
"We expect coking coal price pressure to recede as higher priced quarterly contracts are not there anymore", the brokerage firm said in results preview.
SAIL's stock jumps 60% in one month
By IndianMandarins - 2017-11-04 10:50:35
Anticipating a strong performance by SAIL in Q2, its stock price has jumped 60 percent in the last one month versus a mere 7 percent rise in S&P BSE Sensex. On October 3, SAIL's stock price jumped 8.64 percent to Rs 86.75, extending its 36% rally of the past two weeks on the BSE, ahead of its September (Q2FY18) results next week. Currently, the stock is trading at its highest level since December 4, 2014.
SAIL's board of directors is scheduled to meet on Thursday, November 9, 2017, to consider the un-audited financial results of the company for Q2FY18.
In Q1FY18, the company had reported a standalone net loss of Rs 801 crore against the loss of Rs 536 crore in the same quarter a year ago.
Brokerage firm Emkay Global Financial Services expects that SAIL may report lower net losses of Rs 149 crore in Q2FY18 against Rs 567 crore in the same quarter in FY17. The company may report Ebitda (earnings before interest, tax, depreciation, and amortization) profit of Rs 1,059 crore against Rs 112 crore in the previous year quarter.
"We are expecting positive EBITDA/TN at Rs2870/tn (vs loss in Q1FY18). Sales volume is likely to improve by 22% QoQ to 3.69mt and realization by Rs 2400/tn (qoq). Raw material and employee costs are likely to decrease on per tonne basis by 13% and 7% QoQ, respectively," the brokerage firm said in Q2FY18 results preview.
Edelweiss Securities expects the company to turn profitable at EBITDA level as the share of semis is expected to go down and the volume is expected to go up.
"We expect coking coal price pressure to recede as higher priced quarterly contracts are not there anymore", the brokerage firm said in results preview.
