Thread by @harjaim

Absolutely stunning numbers from #SAIL.

Q2'22 net profit jumped by 10x to 4.3k crore🔥

SAIL is available at a very attractive valuation, Price/Sale 0.5 & EV/EBIDTA 3.2

Strong re-rating candidate

Time for a thread covering key points from the earnings call 👇👇 @nishkumar1977

* SAIL has clocked best ever turnover in any Qtr.
* Company has given best ever quarterly EBIDTA, PBT, and PAT
* Debt reduction from 51k to 22k crore. That's phenomenal 👌 D/E is down to 0.44
* Mgmt target to be net debt free by Jun'22 👌

* Demand is going to be strong in H2 as the effect of monsoon subsidize and construction activity picks up in H2.
* Mgmt expects strong demand in foreseeable future driven by govt infrastructure push & growth in the construction/real estate, the biggest consumer of SAIL products

* Very positive statement from the management: "Demand is not a problem, it's only how much were can produce"

* Capacity Utilization stands at 91% and is expected to be fully utilized in H2.

Starting a 5MT expansion soon. Mgmt has been prudent with CAPEX plans

* Coking coal & coal prices have gone up significantly. Though SAIL has increased the price of long and flat steel but whole input cost can't be passed to consumers so if the prices stays at elevated level, it might impact EBIDTA margin.

Mgmt expects coking coal prices to come down in near future.

Dividend of Rs. 4, Full-year EPS expected to be Rs 40.

Disclosure: Invested.