SAIL revival hinges on cost tightening

While operating performance could improve, it may not be enough to help SAIL turn profitable

Steel manufacturers have seen a sharp reversal in fortunes after the government implemented a minimum import price (MIP) for many products last February. This gave a respite from cheaper imports, boosting realisations and demand for companies.
 
Steel Authority of India (SAIL), too, benefited and showed considerable improv-ement in profitability till the September quarter but could not sustain it in the December quarter. More dependent on domestic sales, it was impacted by the note ban as its volumes were hurt, while rising coal costs also took a toll. While analysts expect its operating performance to improve, they doubt whether it