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SAIL Q1 FY19 Con Call KTA | First Cut
- PM Securities | Equities Research
• Realisation
Realisation improvement (yoy) aided topline growth to an extent of Rs. 3100 crores and sales mix improvement aided topline growth to an extent of Rs. 305 crores
Longs realization
Q1fy18 Rs 35,110
Q4fy18 Rs 41,200
Q1fy19 Rs 42,750
Flats Realization
Q1fy18 Rs 32,300
Q4fy18 Rs 41,300
Q1fy19 Rs 43,350
Net Realisation
Q1fy18 Rs 33,600
Q4fy18 Rs 43,150
Q1fy19 Rs 42,180
In july 2019 net realisation are down by ~ Rs 650 mainly on account of TMT bars, having lower realization due to construction activity slowdown in monsoon. management foresees weakness in prices for at least 2 more months and expects a price increase after the monsoon.
• Sales volume up by 8 % in the quarter, Production number up by 13% in the quarter.
• EBTIDA Margin in Q1 FY19 approx. 17%, Management has guided to touch EBITDA Margin ~21% by end of FY19.
• CAPEX plan for the year ~ Rs 4000 Crores.
• Debtors day down from 24 days to 22 days in Q1 FY19.
• FY 19 aggregate production guidance of 17 mn tons and sales guidance of 16.5 mn tons
Production numbers guidance:
Q1 FY19 – 3.61 mn tons
July 2019 – 1.17 mn tons
Q2 FY 19 – 3.8 mn tons
Q3 FY19 – 4.5 mn tons
Q4 FY19 – 4.9 mn tons
• Steel sold to Railways close to ~ 1.2 mn tons which was 8 lakh units in FY18
• Employee Cost Guidance
Employee cost to remain approx. Rs. 8,500 cores in FY 19 and ~ Rs. 9000 crores in FY 20.
• Raw material cost
Coking coal (landed basis – imported)
Q1fy19 Rs 16,250
July 2019 Rs 16000
Hard Coking Coal
Q1fy19 $197
July 2019 $173
Domestic Coal
July 2019 Rs 6,500
BCCL prime coking coal
July 2019 Rs. 8,200
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