Q3 2026 Steel Authority of India Ltd Earnings Call Transcript
Key Points
- Crude steel production increased by 2% from 14.08 million to 14.35 million tonnes, while saleable steel grew by around 4% to 5%.
- Sales volume rose by 16.3%, leading to a significant reduction in inventory and borrowings.
- Revenue increased by 9% from INR73,162 crores to INR79,997 crores, aligning with the growth in volume.
- PAT (Profit After Tax) increased by 60% compared to the same period last year, highlighting operational efficiency and cost optimization.
- The company reduced its debt by close to INR5,000 crores in the nine-month period, with further reductions in January and expected in February and March.
- The company faced a INR1,000 crores inventory write-off in Q1 due to falling coking coal prices, with only a modest gain in Q3.
- Coking coal prices are on the rise, which is expected to increase production costs in Q4.
- The company has a sizable cost disadvantage compared to peers, which may not narrow significantly until expansion projects are completed.
- Employee costs are expected to rise due to mandatory wage revisions starting in 2027, potentially impacting future profitability.
- Recent accidents at plants, such as the Bhilai Steel Plant, have caused production disruptions, although these have been resolved.
Ladies and gentlemen, good day, and welcome to the Steel Authority of India Q3 FY26 earnings conference call hosted by Nuvama Institutional Equities. (Operator Instructions)
I now hand the conference over to Mr. Ashish Kejriwal from Nuvama Institutional Equities. Thank you, and over to you, sir.
Thank you, Rahul. Good afternoon, everyone. Once again, we welcome you all for Q3 FY26 post results con Call of Steel Authority of India. We are pleased to host Dr. Ashok Panda, Director of Finance, who is along with his team.
Now I will request Mr. Panda for his opening remarks, and thereafter, we will open the floor for Q&A. Over to you, sir.
Yes. Thank you, Mr. Ashish Kejriwalji. Good morning, everyone. I welcome all our investors and analysts, who are joining this results con call for the financial results of SAIL for the quarter Q3 and nine-monthly
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