Sail drops after reverse turnaround in Q4

Steel Authority of India fell 1.4% to Rs 42.35 at 12:57 IST on BSE after the company posted net loss of Rs 1230.93 crore in Q4 March 2016 compared with net profit of Rs 334.22 crore in Q4 March 2015.

The result was announced after market hours yesterday, 30 May 2016.

Meanwhile, the BSE Sensex was down 65.19 points, or 0.24%, to 26,660.41

On BSE, so far 5.12 lakh shares were traded in the counter, compared with an average volume of 6.01 lakh shares in the past one quarter. The stock hit a high of Rs 42.75 and a low of Rs 41.50 so far during the day. The stock hit a 52-week high of Rs 67.20 on 2 June 2015. The stock hit a 52-week low of Rs 33.50 on 12 February 2016. The stock had underperformed the market over the past one month till 30 May 2016, sliding 9.2% compared with Sensex's 4.37% gains. The scrip, however, outperformed the market in past one quarter, gaining 22.71% as against Sensex's 16.19% gains.

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

Steel Authority of India (Sail)'s total income declined 2.9% at Rs 11545.07 crore in Q4 March 2016 over Q4 March 2015. Sail witnessed all round improvement in performance. The company's sales rose 20% to a record 3.79 million tonnes (MT) in Q4 March 2016 over Q4 March 2015.

Sail Chairman P.K. Singh said that the challenging conditions faced by domestic industry received some respite after introduction of the conducive policy measures by government in the form of safeguard duty and minimum import price. The company is targeting to complete the balance modernization and expansion with a focus on energy saving methods, enriching product mix and introducing customer centric processes to meet the expected surge in demand of steel on account of government's emphasis on infrastructure development, Singh said.

Sail is a PSU steel manufacturing company. The Government of India held 75% stake in Sail (as per the shareholding pattern as on 31 March 2016).

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