SAIL Net sales were at INR 113bn (mainly due to higher sales volume at 3.25mn tonnes against our expectation of 3.05mn tonnes), however it was compensated by higher raw material costs. Net blended realizations fell by 2.5% QoQ and raw material costs/t have also come down by 5% QoQ.
Employee costs at INR 18.6bn were ahead of our estimate of INR 17.5bn
Other costs were largely in line and EBITDA at INR 18bn was slightly ahead of our expectation of INR 17.5bn
Other income as well as interest costs were below our estimates - since cash with the company has also come down from INR 275bn in Q3FY10 to INR 205bn in Q3FY11 - they may have used cash to reduce debt and hence both other income and interest costs have come down.
As a result of the above net profit was in line with our estimate at INR 11.07bn
