SAIL shares jump 10% in 2 days despite weak Q3 profit, revenue shows steady growth
However, consolidated net profit fell 66% YoY to Rs 142 crore, down from Rs 422 crore in Q3FY24. Sequentially, PAT dropped 84% from Rs 897 crore in Q2FY25.
The Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) stood at Rs 2,389 crore, compared to Rs 2,319 crore in Q3FY24.
On a standalone basis, PAT fell 62% to Rs 126 crore from Rs 331 crore in the year-ago period. Revenue stood at Rs 24,490 crore, up from Rs 23,345 crore in the October-December quarter of FY24.
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The company’s crude steel production in the reported quarter stood at 4.63 million tonnes, which is lower than the 4.75 million tonnes in the year-ago period. The sales volume increased from 3.81 million tonnes in Q3FY24 to 4.43 million tonnes in Q3FY25.Following the Q3 results, domestic brokerage firm Motilal Oswal maintained its ‘Neutral’ rating on the stock with a revised target price of Rs 115.”SAIL’s Q3FY25 performance has been strong, driven by lower costs despite weak realizations. We raise our FY25 estimates to incorporate the strong performance,” Motilal said.
“SAIL plans to undertake 15 mtpa expansions to increase its capacity to 35 mt. As the capex intensity picks up, it will limit the deleveraging efforts ahead. At CMP, SAIL trades at 5.4x EV/EBITDA on FY27E and is fully priced at current levels,” it added.
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At 10:27 am, the stock was up 4% at Rs 110.1 on the BSE. It has declined 14% in six months but gained 32% in two years.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
