Steel Authority Of India Limited · NSE:SAIL
Steel Authority Of India — H1 FY2018-19 Earnings Presentation
39 slides from Steel Authority Of India's earnings presentation, November 2018
Slide 1: Steel Authority of India Limited Performance Highlights H1 & Q2 FY 2018-19
STEEL AUTHORITY OF INDIA LIMITED Performance Highlights H1 & Q2 FY 2018-19
Slide 2: Performance Highlights: H1 FY2018-19
PERFORMANCE HIGHLIGHTS : H1 FY2018-19 Net Sales : Rs 32284 Crore FINANCIAL EBITDA : Rs 5159 Crore PERFORMANCE PBT : Rs 1676 Crore PAT : Rs 1094 Crore Hot Metal Production : 8.241 MT Crude Steel Production : 7.647 MT PRODUCTION & SALES Saleable Steel Production : 7.151 MT PERFORMANCE
Slide 3: Performance Highlights: Q2 FY2018-19
PERFORMANCE HIGHLIGHTS : Q2 FY2018-19 Net Sales : Rs 16541 Crore FINANCIAL EBITDA : Rs 2474 Crore PERFORMANCE PBT : Rs 848 Crore PAT : Rs 554 Crore Hot Metal Production : 3.975 MT Crude Steel Production : 3.702 MT PRODUCTION & SALES Saleable Steel Production : 3.537 MT PERFORMANCE Se
Slide 4: Financial Performance: Annual Profit Trend
FINANCIAL PERFORMANCE Annual Profit Trend 5909 5590 EBITDA 5184 4333 Cash Profit 3866 3225 PBT 2616 2583 2345 2079 PAT 672 -153 -482 -759 -1619 -2203 -2833 -4021 -4851 -7007 FY 14 FY 15 FY 16 FY 17 FY 18 All figures in Rs crore
Slide 5: Financial Performance: Quarterly and Half-Yearly
FINANCIAL PERFORMANCE 2685 2474 Quarterly 1674 1641 Performance 848 828 755 967 554 Q2 FY 19 vs 22 Q1 FY 19 vs -539 -740 Q2 FY 18 Q2 FY 19 Q1 FY 19 Q2 FY 18 All figures in Rs crore 5159 EBITDA 3316 Cash Profit Half Yearly PBT Performance 1676 1094 PAT 989 H1 FY 19 vs H1 FY 18 -571 -1340 -2028 H1 FY1
Slide 6: Financial Performance: Net Worth, Borrowings and Interest Cost
FINANCIAL PERFORMANCE Annual Net Worth Annual Borrowings & Interest cost 45409 45000 41396 3500 42666 43523 40000 35141 39196 35000 31837 36009 35714 30000 25281 2823 2500 Annual 25000 2528 20000 2300 Borrowings 15000 10000 1500 Interest 1454 Cost 5000 0 968 500 FY 14 FY 15 FY 16 FY 17 FY 18 FY 14 F
Slide 7: Financial Performance
FINANCIAL PERFORMANCE Rs. Crore H1FY19 H1FY18 Q2 FY 19 Q1 FY 19 Q2 FY 18 (INDAS Compliant figures) Net Sales 32284 26297 16541 15743 13437 EBITDA 5159 989 2474 2685 967 Depreciation 1640 1457 826 814 762 Finance Cost 1526 1231 771 755 643 PBT Before Exceptional Items 1993 -1699 876 1116 -439 Excepti
Slide 8: Production Performance
PRODUCTION PERFORMANCE All figures In Million Tonne 13.9 14.1 6.86 7.15 12.9 12.8 12.4 SALEABLE STEEL PRODUCTION (incl. SSPs) FY 14 FY 15 FY 16 FY 17 FY 18 H1 FY18 H1 FY19 Annual Half-Year 6.73 6.96 13.4 13.8 12.4 12.4 11.9 SALEABLE STEEL PRODUCION (5 ISPs) H1 FY18 H1 FY19 FY 14 FY 15 FY 16 FY 17 FY
Slide 9: Production Performance: H1 FY19
PRODUCTION PERFORMANCE : H1 FY19 11.3% 1.3% CRUDE STEEL BOF 14.8% Ingot PRODUCTION EAF Route BY PROCESS THF CC 85.2% Route 87.4% SALEABLE STEEL 42.9% Commodity PRODUCTION BY PROCESS 57.1% Value Added
Slide 10: Production Performance: Product Mix H1 FY19
PRODUCTION PERFORMANCE : H1 FY 19 SAIL 21.0% PRODUCT MIX : 51.7% 5 ISPs 27.3% 27.9% 61.3% 10.8% BSP 32.2% 67.8% DSP Flats RSP 89.1% 10.9% Longs Semis 99.3% 0.7% BSL 54.7% 45.3% ISP
Slide 11: Production Performance
PRODUCTION PERFORMANCE Parameter H1 FY H1 FY MAJOR 18-19 17-18 TECHNO-ECONOMIC Coke Rate (kg/thm) 460 464 PARAMETERS Fuel Rate (kg/thm) 564 561 Specific Energy Consumption 6.58 6.57 (GCal/TCS) BF Productivity (T/m3/day) 1.55 1.66 3 LABOUR PRODUCTIVITY (tcs/man/year) 344 373 351 362 MANPOWER & 302 31
Slide 12: Sales Performance
SALES PERFORMANCE All figures In Million Tonne 14.1 13.1 12.1 11.7 12.1 6.57 6.75 TOTAL SALES (incl. SSPs) FY 14 FY 15 FY 16 FY 17 FY 18 H1 FY 18 H1 FY 19 Annual Half-Yearly 13.8 6.43 6.58 12.7 11.6 11.2 11.7 SALES OF 5 ISPs H1 FY 18 H1 FY 19 FY 14 FY 15 FY 16 FY 17 FY 17
Slide 13: Power Consumption – H1 FY19
POWER CONSUMPTION – H1 FY 19 9.43% Own CPP Drawl from Grid 50.08% Purchase from Power 38.42% Exchange JV CPP 2.07%
Slide 14: SAIL Stock Price Movement
SAIL STOCK PRICE MOVEMENT SAIL's Share Price (Rs.) Sensex Points 35965 37607 36227 35322 35012 33149 32969 38645 29918 30922 31730 35160 35423 34442 27656 33213 34057 34184 26653 26627 32515 31284 31146 28743 29621 92 89 78 77 83 78 76 70 78 68 64 61 60 61 83 64 69 61 57 58 63 54 80 52 49 Closing Sh
Slide 15: SAIL's Modernisation & Expansion Plan
SAIL’s MODERNISATION & EXPANSION PLAN Actual Production Capacity After Million Tonne 2017-18 On-going Expansion Crude Steel 15.021 21.4 Saleable Steel 14.071 20.2 Technological Shift Before After Technology Expansion Expansion BOF Steel Making 79% 100% CC Route 71% 94% Pelletisation Plant No Yes Cok
Slide 16: Modernisation & Expansion Plan
MODERNISATION & EXPANSION PLAN Production through twin-hearth furnace (THF) route to be replaced by BOF-LD converter route. Production through Ingot – teeming route to be replaced with continuous cast production route. EXPECTED Enhancement of Production volume by addition of 2 new 4060 m3 Blas
Slide 17: Ongoing Projects (Capex)
ONGOING PROJECTS (CAPEX) (Rs. Crore) 12191 61870 1 Expansion of existing capacity 3509 2 Value-addition / Product-mix improvement 7039 22739 3 Technological up gradation / Modernization Sustenance including de-bottlenecking, AMR & 4 Environment 39131 39131 5 Total Estimated Cost In addition, a Capex
Slide 18: Capacity After Expansion
CAPACITY AFTER EXPANSION Saleable Steel Hot Metal (MTPA) Crude Steel (MTPA) (MTPA) Plant After After After 2017-18 2017-18 2017-18 Expansion Expansion Expansion BSP 4.28 7.5 4.07 7.0 3.69 6.6 DSP 2.28 2.5 2.04 2.2 1.95 2.1 RSP 3.32 4.5 3.22 4.2 2.94 4.0 BSL 4.05 5.8 3.69 4.6 3.50 4.2 ISP 2.06 2.9 1.
Slide 19: Product Mix Post Expansion – Saleable Steel
PRODUCT MIX POST EXPANSION – SALEABLE STEEL Galvanized Products CR Coils/Sheets 7% 2% PET Products 1% Semis H1 FY 19 9% Structurals 8% HR Plates/Coils/Sh eets/skelp Bars & Rods 30% 17% Rly Products Galvanized PET 9% Products CR Products 3% PM Plates Coils/Sheets 1% 17% 11% Semis 12% Structurals HR 1
Slide 20: Modernisation & Expansion Plan - Salem Steel Plant
MODERNISATION & EXPANSION PLAN - SALEM STEEL PLANT Facilities added: •Steel melting Shop – Electric Arc Furnace (55 T); AOD Converter (60 T); Ladle Furnace (60 T); Single Strand Slab Caster. • Roll Grinder for Hot Rolling Mill • Cold Rolling Mill Complex Production (MTPA) : Item 2017-18 (Actual) Aft
Slide 21: Modernisation & Expansion Plan - IISCO Steel Plant
MODERNISATION & EXPANSION PLAN - IISCO STEEL PLANT Facilities Completed: • Raw Material Handling System • New Coke Oven Battery (0.88 Mtpa, 7 m tall) • Coke Dry Cooling Plant • Sinter Machines (3.88 Mtpa gross sinter production, 2x204 m²) • Blast Furnace 4160 m3 volume (2.7Mtpa) • 3 nos. of 150 T BO
Slide 22: Modernisation & Expansion Plan - IISCO Steel Plant
MODERNISATION & EXPANSION PLAN - IISCO STEEL PLANT New stream to produce 2.7 Mtpa of Hot Metal & 2.5 Mtpa of Crude Steel Production (MTPA) : Item 2017 -18 (Actual) After Expansion Crude Steel 1.80 2.50 Saleable Steel 1.69 2.39 The expanded capacity of IISCO Steel Plant has been dedicated to the Nat
Slide 23: Current Progress of Expansion at IISCO Steel Plant
Current Progress of Expansion at IISCO Steel Plant BURNPUR Coke Oven Battery Sinter Plant Blast Furnace BOF Converters Billet Casters Wire Rod Mill
Slide 24: Modernisation & Expansion Plan – Bokaro Steel Plant
MODERNISATION & EXPANSION PLAN– BOKARO STEEL PLANT Facilities Completed: • Re-building of Coke Oven Battery #1 & #2. • Up-gradation of Blast Furnace #2 and Stoves Up-gradation of #5 • Auxiliary Fuel Injection (CDI) in Blast Furnaces #2 & #3. • Turbo-Blower-8. • New CRM Complex (1.2 Mtpa) • Up-gradat
Slide 25: Current Progress of Expansion at Bokaro Steel Plant
Current Progress of Expansion at Bokaro Steel Plant Coke Oven Blast battery-2 Furnace-2 PLTCM Coil Packaging Line Skin Pass Mill Bell Annealing Furnace
Slide 26: Modernisation & Expansion Plan – Bhilai Steel Plant
MODERNISATION & EXPANSION PLAN– BHILAI STEEL PLANT Facilities Already Completed: • Ore Handling Plant part-A • Second Sinter Machine in Sinter Plant-3 (3.7 MTPA) • New Coke Oven Battery No. 11 (7 m tall, Capacity 0.881 mtpa) • Oxygen Plant (BOO basis) • Universal Rail Mill (1.2 MTPA) and Rail Weldin
Slide 27: Current Progress of Expansion at Bhilai Steel Plant
Current Progress of Expansion at Bhilai Steel Plant Sinter Machine Coke Oven Battery - 11 Blast Furnace - 8 Continuous Caster - 1 Bar & Rod Mill Universal Rail Mill
Slide 28: Modernisation & Expansion Plan – Rourkela Steel Plant
MODERNISATION & EXPANSION PLAN– ROURKELA STEEL PLANT Facilities Completed: • New Coke Oven Battery -6 (7 m tall, 1 x 67 ovens) • New Sinter Plant -3 (1 x 360m²) • New Blast Furnace -5, useful volume - 4060 m3 • New 3rd Single Strand Slab Caster (1.5 MTPA) • New Oxygen Plant 2x700 tpd on BOO basis •
Slide 29: Current Progress of Expansion at Rourkela Steel Plant
Current Progress of Expansion at Rourkela Steel- 3Plant SINTER PLANT Coke Oven Battery - 6 Sinter Plant - 3 1 3rd BOF Converter 3rd Slab Caster BOF Converter Blast Furnace - 5 Tapping
Slide 30: Modernisation & Expansion Plan – Durgapur Steel Plant
MODERNISATION & EXPANSION PLAN– DURGAPUR STEEL PLANT Facilities Completed: • Rebuilding of Coke Oven Battery no-2 • New Ladle Furnace (125T) • Coke Sorting & Coal Handling Plant • New Dolomite Plant (300tpd) • Bloom-cum-Round Caster 1X4 (0.75 Mtpa) • New Medium Structural Mill (1.0 Mtpa) Production
Slide 31: Current Progress of Expansion at Durgapur Steel Plant
Current Progress of Expansion at Durgapur Steel Plant Coke Oven Battery-2 Ladle Furnace-3 Bloom cum Round Caster Medium Structural Mill
Slide 32: Raw Materials
RAW MATERIALS Iron Ore Hot Metal Year Consumption Linkages of Iron Ore (mtpa) (mtpa) 2017-18 15.983 25.87 Existing Mines The capacity of existing mines at Kiriburu, Meghahatuburu, Bolani & Gua are being ramped up to meet the requirement of Iron Ore for post ongoing phase of expansion New Pellet Plan
Slide 33: Raw Materials – Iron Ore
RAW MATERIALS – Iron Ore Existing Capacity* after Mine Capacity* ongoing Remarks (mtpa) expansion (mtpa) Kiriburu 5.50 5.50 • Expansion at Kiriburu has already been completed whereas Meghathaburu is being ramped up to meet the requirement Meghathaburu 5.00 6.50 of the ongoing expansion plan. Bolani
Slide 34: Raw Materials – Coal
RAW MATERIALS – Coal Hot Metal Coking Coal Year Linkages of Coking Coal (mtpa) Requirement (mtpa) • Import Component – 86% • Over 70% of imported coal is sourced from Australia. • Indigenous: 13% 2017-18 15.983 15.392 • Domestic coal is largely sourced from Coal India Ltd. • SAIL has existing captiv
Slide 35: Major Joint Ventures
MAJOR JOINT VENTURES FOCUS AREA ALLIANCE PARTNER REMARKS A Special Purpose Vehicle, namely, ‘Chhattisgarh Mega Steel Limited’ has been formed for setting-up STEEL an Ultra Mega Steel Plant (UMSP) in Bastar area of Chhattisgarh. SAIL Bansal Service Center Limited – A JV with Bansal Metal Works Lt
Slide 36: Major Joint Ventures
MAJOR JOINT VENTURES FOCUS AREA ALLIANCE PARTNER REMARKS SAIL Kobe Iron India Pvt. Ltd. – A Joint Venture Company has been formulated for setting up a 0.5 TECHNOLOGY mtpa capacity Plant for producing iron nuggets based on ITmk3 technology. International Coal Ventures Pvt. Ltd., a SPV of 5 leadin
Slide 37: Major Joint Ventures
MAJOR JOINT VENTURES FOCUS AREA ALLIANCE PARTNER OBJECTIVE SAIL RITES Bengal Wagon Industry Pvt. Ltd. – A WAGON Joint Venture Company has been formed with M/s MANUFACTURE RITES for setting up Wagon Manufacturing Factory at Kulti, West Bengal. JV with Tata Steel to promote e-commerce E-PORTAL act
Slide 38: Abbreviations used
Abbreviations used • BF Blast Furnace • FOB Freight On Board • SMS Steel Melting Shop • JPC Joint Plant Committee • BOF Basic Oxygen Furnace • Kg/thm Kilo Gram Per Tonne of • THF Twin Hearth Furnace Hot Metal • EAF Electric Arc Furnace • Tpd Tonnes Per Day • BSP Bhilai Steel Plant • MT Million Tonne
Slide 39: Disclaimer
Disclaimer Statements / Data which do not relate to SAIL and are used / made in this presentation are from sources which are considered reliable and Company cannot be held for its authenticity. Further, statements describing the Company’s projections, estimates, expectations are “forward looking sta
Steel Authority of India — H1 FY2018-19 Earnings Presentation on 6ix