Steel Authority Of India Ltd (SAIL) is yet to declare its Q4 FY21 numbers, for which the date of Board Meeting is not yet announced, with last date being 30th June. Other 3 large peers viz. Tata Steel, JSW Steel and Jindal Steel have already declared their Q4 numbers.

SAIL Q4 FY21 numbers are going to be mind boggling, with Q4 EPS to be seen in double digit, which was at Rs. 3.55 for Q3 FY21 and at Rs. 1.64 for 9M of FY21. For Q3, PBT on consolidated basis was at Rs. 3,815 cr, while there was no income tax liability, due to MAT credit available. However, Deferred Tax Debit of Rs. 2,345 cr was entirely charged to P&L Account in Q3, as SAIL opted for lower tax rate under section 115BAA from FY20, which made PAT lower at Rs. 1,470 cr.

Going by margin trend, PBT of Q4 is going to be minimum of 150% of Q3, which is estimated at Rs. 5,700 cr. Even if we consider tax liability of Rs. 1,500 cr, being 26% of PBT, (assuming that no more MAT credit exist), Q4 PAT will be at Rs. 4,400 cr, giving an EPS of over Rs. 10. These results will be received with both hands by the market,

Even FY 22 may be heading for an estimated EPS of Rs. 40, as price hikes are seen in April & May, while 2-3 more such hikes are expected in remaining 9-10 months of FY 22.

So, SAIL is likely to Shine more in the months ahead. Keep an eye on Q4 result date.
 
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