Steel Authority of India (SAIL) Q4 02/03 earnings summary

Executive summary

• FY 2002-03 turnover reached a record Rs. 19,207 crore, up 24% YoY; cash profit was Rs. 831 crore versus a Rs. 551 crore cash loss, while net loss narrowed 82% to Rs. 304 crore.

• Excluding capital gains on asset sales, operating performance improved by Rs. 1,921 crore; no dividend was recommended due to the net loss.

Financial highlights

• Sales turnover rose to Rs. 19,207 crore from Rs. 15,502 crore; operating profit (PBDIT) increased to Rs. 2,165 crore from Rs. 1,011 crore.

• Standalone PBT loss narrowed to Rs. 316 crore from Rs. 1,707 crore; PAT loss was Rs. 304 crore versus Rs. 1,707 crore.

• Interest and finance charges fell to Rs. 1,334 crore from Rs. 1,562 crore; depreciation was Rs. 1,147 crore versus Rs. 1,156 crore.

• Capital gains included Rs. 144 crore from leasing houses and other assets, versus Rs. 662 crore from asset sales in the prior year.

Outlook and guidance

• FY 2003-04 began positively; market demand and prices were expected to remain firm, supporting better performance and continued turnaround.

• Targets for FY 2003-04 included 6-8% improvement in critical productivity parameters, higher production, optimized product mix, more exports and lower operating costs.

• Reverse auctions worth Rs. 150 crore were expected in FY 2003-04, following Rs. 42 crore conducted during FY 2002-03.