SAIL jumps 7.33% on better than expected Q4 numbers

SAIL jumps 7.33% on better than expected Q4 numbers


Steel Authority of India (SAIL) surged more than 7% on Friday after the India`s largest steel producing company reported better than expected earnings.

During the quarter, the profit of the company climbed 24.97% to Rs 23,767.60 million from Rs 19,018.80 million in the same quarter, previous year. The analysts polled by Bloomberg had forecasted earnings of Rs 12,802.17 million for the quarter.

Shares of the company gained Rs 12.7, or 7.33%, to settle at Rs 185.9, while the BSE metal index climbed 317.64 points, or 1.90%, to close at 17,058.01.

Net sales for the quarter rose 29.78% over prior year period to Rs 134,779 million as against Rs 117,855.66 million estimated by analysts. Total income for the quarter climbed 30.42% to Rs 138,552.50 million compared with the prior year period. The company reported earnings of Rs 5.75 a share during the quarter, registering 25% growth over prior year period.


Quarterly Results - Standalone (Rs in mn)
As at Mar - 08 Mar - 07 %Change
Net Sales 134779.00 103850.80 29.78
Net Profit 23767.60 19018.80 24.97
Basic EPS 5.75 4.60 25.00

During the quarter, the company announced a fall in operating margin of 198.17 basis points to 27.13% on higher input cost. Interest cost decreased 5.93% to Rs 521.90 million, while depreciation cost rose 12.35% to Rs 3,170.60 million over previous year period.

For the financial year 2008, SAIL (Q, N,C,F)* posted a 21.76% rise in consolidated net profit to Rs 75,680.30 million from Rs 62,153.30 million in the previous year. Consolidated total income for the year climbed 17.69% to Rs 415,714.50 million compared with the prior year.

Dividend

The board of directors has recommended a final dividend of 18% on paid up equity share capital, in addition to the interim dividend of 19% already paid, for the financial year 2007-08, thus taking the total dividend to 37% on paid-up equity share capital.

The stock has shown a rise of 3.64% over the week and 6.52% over a month. The total volume of shares traded was 9,486,622 at the BSE (Friday).
 
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