- Steel Authority reported a net income of 1.26 billion rupees for the third quarter, which is 62% lower than the previous year and missed the estimate of 1.75 billion rupees.
- Revenue for the quarter was 244.9 billion rupees, showing a 4.9% increase compared to the previous year and slightly above the estimated 244.68 billion rupees.
- Total costs rose by 6.1% year-over-year to 245.6 billion rupees.
- Raw material costs decreased by 14% to 117.9 billion rupees, which was below the estimated 119.33 billion rupees.
- Finance costs increased by 11% to 6.79 billion rupees, slightly below the estimate of 7.04 billion rupees.
- Other expenses saw a modest increase of 0.4%, amounting to 71.1 billion rupees, compared to an estimate of 78.98 billion rupees.
- Other income more than doubled to 3.64 billion rupees from 1.79 billion rupees in the previous year.
- EBITDA was 23.9 billion rupees, reflecting a 3% year-over-year increase.
- Analyst recommendations were 3 buys, 8 holds, and 18 sells.
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A look at Steel Authority of India Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Steel Authority of India Limited, an integrated steel manufacturing company, is poised for a promising long-term outlook based on a recent analysis utilizing Smartkarma Smart Scores. With a solid Value score of 5 and a top-notch Dividend score of 5, the company demonstrates strong financial fundamentals and a commitment to rewarding its investors. Although the Growth and Resilience scores stand at 2, suggesting room for improvement in terms of expansion and stability, the Momentum score of 3 indicates a positive trend in the company’s performance. Overall, Steel Authority of India‘s favorable Smart Scores reflect its potential for sustained growth and profitability in the foreseeable future.
Steel Authority of India Limited, known for its diverse range of steel products including alloy steel, stainless steel, and ERW pipes, is underpinned by a strong government ownership. The company’s robust Value and Dividend scores underscore its financial strength and commitment to shareholder returns. Despite moderate scores for Growth and Resilience at 2, and Momentum at 3, Steel Authority of India‘s strategic position in the steel market combined with its consistent dividend payouts make it an attractive long-term investment opportunity with the potential for solid returns.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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