SAIL posts a net loss in Q4 amid huge inventory cost

India’s largest domestic steel maker Steel Authority of India (SAIL) has posted positive revenues and a narrowed net loss in its Q4FY16 results as compared to the previous quarter. The company has posted a net loss despite of rise in revenues in the wake of huge inventories.

Company’s consolidated Total Income from Operations for Q4FY16 has come in at Rs 24983.1 crore as against Rs 24103.4 crore, an increase of 3.6 per cent. Changes in inventories have seen an increase and stand at Rs 2026.85 crore as against a decrease of Rs 17.97 crore in the last quarter.

Company has seen negative EBITDA for fourth straight quarter at Rs 1123.4 crore but as against a loss of Rs 1375.7 crore in the last quarter. Net Profit has risen by 15 per cent from Rs 1116.9 crore for Q3FY16 to Rs 1290.3 crore.

The Year on Year (YOY) results show that, Company’s consolidated Revenues have dropped 2.2 per cent from Rs 11469.37 crore in the same quarter last year. EBITDA is positive at Rs 913.9 crore in Q4FY15 as compared to the results. Net profit (PAT) too is positive at Rs 334.22 crore during the corresponding quarter of last year.

On a yearly basis SAIL has posted consolidated revenues of Rs 38944.08 crore for the year ended March 2016 compared to Rs 45479.72 crore in March 2015, a drop of 14.37 per cent. Company has posted a net loss of Rs 4001 crore in FY16 as compared to a net profit of Rs 2158.40 crore in the last year.

SAIL produces and sells steel products through five integrated steel plants, alloy plants and joint ventures. Its products include flat products, such as hot rolled (HR) coils, HR plates, cold rolled (CR) coils, pipes and electric sheets, and long products, such as thermo mechanically treated (TMT) bars and wire rods. It also manufactures long rails, blooms, billets, slabs, channels, joists, angles, forged alloy and special steel products.

The stock is down 1.98 per cent at Rs 42.1 in today’s trade.