SAIL surges 13% on best-ever quarterly profit of Rs 4,304 crore in Q2

Shares of Steel Authority of India (SAIL) surged 13 per cent to Rs 130.35 on the BSE in Monday's intra-day trade after the company reported best-ever quarterly standalone profit after tax (PAT) of Rs 4,304 crore for the second quarter ended September 2021 (Q2FY22). It had posted Rs 393 crore net profit in the year-ago quarter. On a sequential basis, PAT up 12 per cent from Rs 3,850 crore in June 2021 quarter.

The company's standalone revenue from operations increased 58 per cent year on year (YoY) at Rs 26,827 crore, from Rs 16,923 crore in the corresponding quarter of the previous fiscal. Standalone earnings before interest, tax, depreciation and amortization (Ebitda) for the quarter was at Rs 7,017 crore, up 269 per cent YoY; Ebitda margin was up 1493 bps YoY but down 564 bps QoQ and at 26.2 per cent.

The company has announced interim dividend of Rs 4 per equity share or 40 per cent of the paid up equity share capital of the Company.

According to ICICI Securities, SAIL reported a mixed set of numbers for Q2FY22, wherein topline came in line with their estimate while Ebitda/tonne, EBITDA and PAT came in below estimate. "For Q2FY22, SAIL reported sales volume of 4.28 million tonne (MT), up 2 per cent YoY, 29 per cent QoQ, in line with our estimate of 4.30 MT. For the quarter, SAIL reported Ebitda/tonne at Rs 16,395/tonne compared to our estimate of Rs 18,000/tonne (Q1FY22 Ebitda/tonne was at Rs 19,728/tonne)," the brokerage firm said in a note.

Meanwhile, Ace investor Rakesh Jhunjhunwala held 72.5 million or 1.76 per cent stake in SAIL as on September 30, 2021, the shareholding pattern data shows.

At 10:11 am, the stock was trading 12 per cent higher at Rs 129.30 on the BSE on the back of heavy volumes. In comparison, the S&P BSE Sensex was up 0.39 per cent at 59,540 points. Trading volumes on the counter jumped 1.5 times with a combined 138 million equity shares having changed hands on the NSE and BSE. The stock had hit a 52-week high of Rs 151 on May 10, 2021.