External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

External broker reports(aggregated public sources)

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Steel Authority of India / Equity Bottom-Up

<ul><li>In 2QFY25, SAIL received a one-time revenue and EBITDA gain of INR16.4b related to rail price revisions for FY23.</li><li>For a like-to-like comparison, we have adjusted its 2QFY25 financials by excluding this one-time gain.</li><li>SAIL reported a revenue of INR230b (-18% YoY and -4% QoQ), which was 12% below our estimate of INR262b.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

In 2QFY25, SAIL received a one-time revenue and EBITDA gain of INR16.4b related to rail price revisions for FY23.For a like-to-like comparison, we have adjusted its 2QFY25 financials by excluding this one-time gain.SAIL reported a revenue of INR230b (-18% YoY and -4% QoQ), which was 12% below our estimate of INR262b.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sail - Weak Volumes and Low Realization Drag Down Earnings

External broker reports(aggregated public sources), Axis Direct

Axis Direct

Axis Direct is the flagship brand under Axis Securities Limited, a subsidiary of Axis Bank in India. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Spreads likely to remain muted in Q3FY25: Imported Coking coal prices may decline by ~Rs 1,600-1,700/t QoQ in Q3FY25.</li><li>However, the average blended NSR in Q3FY25 is likely to come down QoQ by Rs 1,750/t as it averaged Rs 48,750/t so far in Oct-Nov’24 which is lower than the blended average of Rs 50,500/t realized in Q2FY25.</li><li>This is likely to keep the spreads muted QoQ in Q3FY25.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Spreads likely to remain muted in Q3FY25: Imported Coking coal prices may decline by ~Rs 1,600-1,700/t QoQ in Q3FY25.However, the average blended NSR in Q3FY25 is likely to come down QoQ by Rs 1,750/t as it averaged Rs 48,750/t so far in Oct-Nov’24 which is lower than the blended average of Rs 50,500/t realized in Q2FY25.This is likely to keep the spreads muted QoQ in Q3FY25.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Steel Authority of India Ltd - Weak Q2, Rising Leverage Raises Concern

<ul><li>Spreads to contract in Q2FY25: Blended coking coal consumption cost fell to Rs 23,000/t in Q1 and will be flat QoQ in Q2.</li><li>Blended NSR in Q1 fell to Rs 53,700/t and a further reduction of ~Rs 1,500/t+ is possible based on a drop in steel prices in Jul-Aug’24 so far.</li><li>Rising Debt: Gross debt has gone up by ~Rs 5,000 Cr QoQ to Rs 35,659 Cr in Q1FY25 due to working capital build-up on accumulation of the coal stock and increase in inventory of both semi and finished steel at 0.5 and 1.84 MTPA respectively.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Spreads to contract in Q2FY25: Blended coking coal consumption cost fell to Rs 23,000/t in Q1 and will be flat QoQ in Q2.Blended NSR in Q1 fell to Rs 53,700/t and a further reduction of ~Rs 1,500/t+ is possible based on a drop in steel prices in Jul-Aug’24 so far.Rising Debt: Gross debt has gone up by ~Rs 5,000 Cr QoQ to Rs 35,659 Cr in Q1FY25 due to working capital build-up on accumulation of the coal stock and increase in inventory of both semi and finished steel at 0.5 and 1.84 MTPA respectively.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sail - Downgrade to HOLD Amidst Weak Steel Prices and Rising Debt

<ul><li>Volume guidance: In FY25, steel production guidance is 20+ MT (18.4 MT in FY24) and sales volume target is 19 MT (17 MT in FY24).</li><li>Until the expansion capex kicks in, SAIL’s profitability will be guided by coking coal prices and NSRs.</li><li>Its high cost structure makes it sensitive to coking coal prices and the prevailing low coking coal prices will aid its profitability.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Volume guidance: In FY25, steel production guidance is 20+ MT (18.4 MT in FY24) and sales volume target is 19 MT (17 MT in FY24).Until the expansion capex kicks in, SAIL’s profitability will be guided by coking coal prices and NSRs.Its high cost structure makes it sensitive to coking coal prices and the prevailing low coking coal prices will aid its profitability.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Steel Authority of India - Decent Q4FY24, Input Costs Remain Benign

<ul>
<li>SAIL’s Q3FY24 numbers missed our estimates on account of a miss in sales volumes.</li>
<li>EBITDA increased by 3% YoY despite an 8% drop in saleable steel volume to 3.81MT led by lower RM costs.</li>
<li>On a QoQ basis, the EBITDA fell by 45% (a 33% miss against our estimates). </li>
</ul>
Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.


SAIL’s Q3FY24 numbers missed our estimates on account of a miss in sales volumes.
EBITDA increased by 3% YoY despite an 8% drop in saleable steel volume to 3.81MT led by lower RM costs.
On a QoQ basis, the EBITDA fell by 45% (a 33% miss against our estimates). 

Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Sail - Lower Sales Volume Drives Miss, Input Costs Remain Benign

India

Steel Authority of India Limited is an integrated steel manufacturing company. The Company's products include pig iron, steel ingots, liquid steel, alloy steel, special steel, stainless steel, ferro alloys, ERW pipes, spirally welded pipes, and calcium ammonium nitrate.  The Government of India is currently a majority shareholder in the company.

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Steel Authority of India (SAIL IN)

Sail - Weak Volumes and Low Realization Drag Down Earnings

For a like-to-like comparison, we have adjusted its 2QFY25 financials by excluding this one-time gain. SAIL reported a revenue of INR230b (-18% YoY...

Motilal Oswal

Steel Authority of India Ltd - Weak Q2, Rising Leverage Raises Concern

Management expects Net Debt to come down to Rs 30,000 Cr by FY25 end as it expects to pick up sales volume in H2FY25 post the weak H1FY25 performance.

Axis Direct

Sail - Downgrade to HOLD Amidst Weak Steel Prices and Rising Debt

Spreads to contract in Q2FY25: Blended coking coal consumption cost fell to Rs 23,000/t in Q1 and will be flat QoQ in Q2.

Axis Direct

Steel Authority of India - Decent Q4FY24, Input Costs Remain Benign

Volume guidance: In FY25, steel production guidance is 20+ MT (18.4 MT in FY24) and sales volume target is 19 MT (17 MT in FY24).

Axis Direct

Sail - Lower Sales Volume Drives Miss, Input Costs Remain Benign

SAIL’s Q3FY24 numbers missed our estimates on account of a miss in sales volumes. EBITDA increased by 3% YoY despite an 8% drop in saleable steel...

Axis Direct

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