Steel Authority of India (SAIL) is expected to benefit from the decline in raw material priced on a sequational basis, thought steel prices have seen some pressure.
Steel and Raw Material Price movement
Weak Local Consumption and Demand in China, Rising Exports and Excess Chinese Supplies Have Kept Pressure on Global Pries. China remains the largest consumer of commodities in the world, and hence, china’s supply and demand remain key for global metal prices. The Safeguard Duty in India is supporting domestic prices, even thought the US tariff conflict has turned into a posesible challenge for the sector.
Steel Pries Recover but Still low
The average hot rolled coil or HRC price benchmark fell in Q4Fy25, Down 11% Year-On-Yaar, as per Axis Securities. On a sequential Basis, with the price recovery taking place towards the end of Q4Fy25, HRC price benchmark was down just 1% sequentially.
Raw Material Prisis to Benefit Sail
As per motilal oswal financial services’ data, Coking Coal (Premium HCC) Continued Its Downward Trajector, with Average Premium Hcc Coking Coking Coking Coal Prices Declining BY <20/Per Tonne Sequestly to $ 200 a tonne in 4QFY25. In 4QFY25, Ferrous Companies have projectioned a coking coal advantage of $ 10–15 per tonne, as per the brokerage.
Also, Iron Ore Prisis Have Largely Remained Stable on a Sequational Basis. Analysts have been expected by subdued costs to be the main reason for the Margins to improve. The improvement in Steel prices will be somewhat apparent starting Q1fy26, it added.
Sail Q4 Results Preview
Axis Securities Expects Sail’s Earnings Before Interest, Tax, Depreciation and Amortisation (ebitda) to increase on a sequential basis by 35%.
Motilal oswal also expects volume to see healthy growth and q4 performance to be driven by some recovery in step pris and reduced coal costs. It expects Sail’s Net Profit to come at 790 Crore, an improvement over 140 Crore in the Previous Quarter, Thought Still Lower Than 1130 Crore in the year -go Quarter.
The Revenue is Seen at Around 29,220 Crore for the March Quarter, Up 19.3% Sequally and 11.3% Year-On-Yaar, as per mofsl’s estimates.
Sail Q4 Results: Key Monitorable
Management Guidance on the Debt Reduction Plan will be Watched by Investors. Also, The Guidance on Both Domestic and International Steel Pries and Capital Expenditure Plans by Sail will be keenly tracked.
Disclaimer: The views and recommendations made about individual analysts or broking companies, and not of Mint. We Advise Investors to Check With Certified Experts Before Making Any Investments Decisions.
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