Product mix to aid SAIL's realisations; analysts remain positive on stock

Most of SAIL's plants are no longer posting losses at the operating level as was the case a year ago

With much-delayed expansions getting onstream, SAIL has been posting a consistent improvement in performance over the last few quarters and the June quarter was no different. Its operating profit per tonne at Rs 7,877 is a significant improvement over Rs 86 in the year-ago quarter and reflects a 13 per cent rise on a sequential basis. These levels are the highest since FY10.

While volume growth remains strong led by expansions and robust demand, it is the improved realisations and cost controls that have driven profitabilty. The June quarter saw sales volumes at 3.3 million tonnes, up 8 per cent year-on-year,