Sail declines on buzz of Fitch downgrade

Steel Authority of India fell 0.83% to Rs 71.75 at 11:18 IST on BSE after Fitch Ratings reportedly downgraded its outlook on the company's long-term foreign-currency issuer default rating to negative from stable.

Meanwhile, the BSE Sensex was up 24.72 points, or 0.09%, to 28,732.47.

On BSE, so far 1.80 lakh shares were traded in the counter, compared with an average volume of 3.91 lakh shares in the past one quarter.

The stock hit a high of Rs 72.50 and a low of Rs 71.10 so far during the day. The stock hit a 52-week high of Rs 112.90 on 9 June 2014. The stock hit a 52-week low of Rs 65.20 on 30 April 2014.

The stock had outperformed the market over the past one month till 7 April 2015, rising 8.39% compared with 2.52% decline in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 8.59% as against Sensex's 5.25% rise.

The large-cap company has an equity capital of Rs 4130.53 crore. Face value per share is Rs 10.

According to reports, Fitch Ratings revised the outlook on Steel Authority of India's (Sail) long-term foreign-currency issuer default rating (IDR) to negative from stable, adding that the IDR is affirmed at 'BBB-'.

The outlook revision reflects Sail's higher leverage and subdued operating performance following weak economic growth in India, Fitch reportedly said. It further indicated that delays in execution of debt-funded expansion and modernisation programme, low profitability and muted demand have led to deterioration in the company's credit profile.

Net profit of Sail rose 8.73% to Rs 579.09 crore on 3.39% decline in net sales to Rs 10977.41 crore in Q3 December 2014 over Q3 December 2013.

Government of India holds 75% stake in Sail (as per the shareholding pattern as on 31 December 2014).

Powered by Capital Market - Live News