Steel Authority Of India Limited · NSE:SAIL
Steel Authority Of India — Q1 FY2017-18 Earnings Presentation
37 slides from Steel Authority Of India's earnings presentation, August 2017
Slide 1: Performance Highlights Q1 FY2017-18
STEEL AUTHORITY OF INDIA LIMITED Performance Highlights Q1 FY2017-18
Slide 2: Performance Highlights: Q1 FY18
PERFORMANCE HIGHLIGHTS : Q1 FY18 Net Sales : Rs 11456 Crore FINANCIAL EBITDA : Rs 23 Crore PERFORMANCE PBT : Rs (-) 1287 Crore PAT : Rs (-) 801 Crore Hot Metal Production : 3.528 MT Crude Steel Production : 3.305 MT PRODUCTION Saleable Steel Production : 3.202 MT & SALES PERFORMANCE
Slide 3: Financial Performance
FINANCIAL PERFORMANCE 5909 5590 3225 2345 Profit 672 EBITDA 2616 2079 -2203 -2833 PBT Trend -4021 PAT -4851 -7007 FY 14 FY 15 FY 16 FY 17 500 323 180 143 26 23 0 -500 Quarterly -535 EBITDA -732 -1000 -925 -795 -771 -801 PBT Profits -1500 -1253 -1254 -1419 -1287 PAT -2000 -2500 Q1 FY17 Q2 FY17 Q3 FY1
Slide 4: Financial Performance
FINANCIAL PERFORMANCE Annual Net Worth Annual Borrowings & Interest cost 45000 41396 3500 43523 40000 35141 42666 31837 39196 35000 36009 30000 25281 2500 Annual 25000 2528 20000 2300 Borrowings 15000 10000 1500 Interest 5000 1454 Cost 0 968 500 FY 14 FY 15 FY 16 FY 17 FY 14 FY 15 FY 16 FY 17 Quarte
Slide 5: Financial Performance
FINANCIAL PERFORMANCE Rs. Crore Q1 FY18 Q4 FY17 Q1 FY17 (INDAS Compliant figures) Gross Sales 12860 14079 10180 Net Sales 11456 12535 9082 EBITDA 23 143 335 Depreciation 695 744 600 Finance Cost 588 720 594 PBT Before Exceptional Items -1260 -1321 -859 Exceptional/Abnormal Items (VRS/Suspended Opera
Slide 6: Production Performance: Q1 FY18
PRODUCTION PERFORMANCE: Q1 FY18 All figures In Million Tonne 13.9 12.9 12.8 12.4 3.44 3.20 SALEABLE STEEL PRODUCTION (incl. SSPs) FY 14 FY 15 FY 16 FY 17 Q1 FY17 Q1 FY18 Annual Quarterly 3.32 13.4 3.14 12.4 12.4 11.9 SALEABLE STEEL PRODUCION (5 ISPs) Q1 FY17 Q1 FY18 FY 14 FY 15 FY 16 FY 17
Slide 7: Production Performance: Q1 FY18
PRODUCTION PERFORMANCE : Q1 FY18 10.8% 1.2% CRUDE STEEL BOF 14.5% Ingot PRODUCTION EAF Route BY PROCESS THF CC 85.5% Route 88.0% SALEABLE STEEL 42.9% Commodity PRODUCTION BY PROCESS 57.1% Value Added (5 ISPs)
Slide 8: Production Performance: Product Mix
PRODUCTION PERFORMANCE : Q1 FY 18 SAIL 17.3% PRODUCT MIX : 54.5% 5 ISPs 28.2% BSP 29.5% 58.6% 11.9% DSP 39.2% 60.8% Flats RSP 93.8% 6.2% Longs Semis BSL 98.7% 1.3% ISP 60.6% 39.4%
Slide 9: Production Performance
PRODUCTION PERFORMANCE Parameter Q1 FY 18 Q1 FY 17 MAJOR Coke Rate (kg/thm) 470 477 TECHNO-ECONOMIC Fuel Rate (kg/tcs) 562 554 PARAMETERS Q1 FY 18 Sp. Energy Consumption 6.72 6.59 (GCal/tcs) BF Productivity (T/m3/day) 1.60 1.59 3 315 320 302 298 278 258 LABOUR PRODUCTIVITY LP during July 2017 is 329
Slide 10: Power Consumption – Q1 FY18
POWER CONSUMPTION – Q1 FY 18 13.04% Own CPP Drawl from Grid 56.64% 30.32% JV CPP
Slide 11: Sales Performance
SALES PERFORMANCE 13.1 12.1 11.7 12.1 3.0 11.1 2.8 SALEABLE STEEL SALES (Million Tonne) Q1 FY17 Q1 FY18 FY 13 FY 14 FY 15 FY 16 FY 17 Quarterly No. of Dealers 2156 SALES THROUGH 2122 1973 DEALER’s NETWORK Sales through dealers during Q1 FY18 01.07.2016 0.165 MT vis-à-vis 01.04.2017 01.07.2017 0.138
Slide 12: SAIL Stock Price Movement
SAIL STOCK PRICE MOVEMENT SAIL's Share Price (Rs.) Sensex Points 30922 31214 29918 28452 27930 28743 32515 26283 26657 27000 26627 31146 26118 25607 29621 23002 26668 28052 26653 27656 26155 26146 27866 24871 25342 64 61 61 60 63 57 58 57 50 51 53 52 52 46 49 47 45 47 48 46 49 43 43 43 35 Closing Sh
Slide 13: SAIL's Modernisation & Expansion Plan
SAIL’s MODERNISATION & EXPANSION PLAN Actual Production Capacity After Million Tonne 2016-17 On-going Expansion Crude Steel 14.495 21.4 Saleable Steel 13.868 20.2 Technological Shift Before After Technology Expansion Expansion BOF Steel Making 79% 100% CC Route 71% 94% Pelletisation Plant No Yes Cok
Slide 14: 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 15: 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 16: Capacity After Expansion
CAPACITY AFTER EXPANSION Saleable Steel Hot Metal (MTPA) Crude Steel (MTPA) (MTPA) Plant After After After 2016-17 2016-17 2016-17 Expansion Expansion Expansion BSP 5.0 7.5 4.7 7.0 4.0 6.6 DSP 2.3 2.5 2.0 2.2 1.9 2.1 RSP 3.1 4.5 2.9 4.2 2.7 4.0 BSL 3.4 5.8 3.2 4.6 3.4 4.2 ISP 1.8 2.9 1.4 2.5 1.3 2.4
Slide 17: Product Mix Post Expansion – Saleable Steel
PRODUCT MIX POST EXPANSION – SALEABLE STEEL Galvanized Products CR Coils/Sheets 7.8% 2.2% PET Products 0.7% Semis Q1 FY 18 8.9% Structurals 7.1% Bars & Rods 17.0% HR Plates/Coils/Sh eets/skelp 31.7% Rly Products Galvanized 7.5% PET Products CR Products 3% PM Plates Coils/Sheets 1% 17.2% 11% Semis 12
Slide 18: 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 –20-high Sendzimir Mill Production (MTPA) : I
Slide 19: Modernisation & Expansion Plan - IISCO Steel Plant
MODERNISATION & EXPANSION PLAN - IISCO STEEL PLANT Facilities Completed: • Coal, Coke Handling and Pipe Conveyor • Ore Handling Plant • Base Mix Preparation Plant • New Coke Oven Battery (0.88 Mtpa, 2 x 37 ovens, 7 m tall) – • Coke Dry Cooling Plant • Sinter Machines (3.88 Mtpa gross sinter producti
Slide 20: 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 2016 -17 (Actual) After Expansion Crude Steel 1.397 2.50 Saleable Steel 1.339 2.39 The expanded capacity of IISCO Steel Plant has been dedicated to the N
Slide 21: 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 22: 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) except HDGL
Slide 23: 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 24: 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) • Rail Welding
Slide 25: 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 26: 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, 4060 m3 useful volume • New 3rd Single Strand Slab Caster (1.5 MTPA) • New Oxygen Plant 2x700 tpd on BOO basis • Ne
Slide 27: 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 28: 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 29: 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 30: Raw Materials
RAW MATERIALS Iron Ore Hot Metal Year Consumption Linkages of Iron Ore (mtpa) (mtpa) 2016-17 15.73 25.332 Existing Mines The capacity of existing mines at Kiriburu, Meghahatuburu, Bolani and Gua are being ramped up to meet the requirement of Iron Ore for post ongoing phase of expansion New Pellet Pl
Slide 31: Raw Materials – Iron Ore
RAW MATERIALS – Iron Ore Existing Capacity* after Mine Capacity* ongoing expansion Remarks (mtpa) (mtpa) Kiriburu 5.50 5.50 • Expansion at Kiriburu has already been completed whereas Meghathaburu is being ramped up to meet Meghathaburu 5.00 6.50 the requirement of the ongoing expansion plan. Bolani
Slide 32: Raw Materials – Coal
RAW MATERIALS – Coal Hot Metal Coking Coal Year Linkages of Coking Coal (mtpa) Requirement (mtpa) • Import Component – 81.05% • Over 70% of imported coal is sourced from Australia. • Indigenous: 18.95% 2016-17 15.73 15.32 • Domestic coal is largely sourced from Coal India Ltd. • SAIL has existing ca
Slide 33: Major Joint Ventures
MAJOR JOINT VENTURES FOCUS AREA ALLIANCE PARTNER REMARKS JV with NTPC for operating and managing CPPs of ENERGY Bhilai, Durgapur and Rourkela. JV with DVC for operating & managing CPP of Bokaro. JV with Tata Steel to promote e-commerce activities E-PORTAL in steel and related areas. SAIL RIT
Slide 34: Major Joint Ventures
MAJOR JOINT VENTURES FOCUS AREA ALLIANCE PARTNER REMARKS M/s S&T Mining Company Pvt. Ltd. formed with Tata RAW Steel for developing coking coal mines in India. MATERIALS (INDIGENOUS) M/s SAIL & MOIL Ferro Alloys (Pvt.) Ltd. formed with MOIL for production of Ferro-alloys at Bhilai. A Special P
Slide 35: Major Joint Ventures
MAJOR JOINT VENTURES FOCUS AREA ALLIANCE PARTNER REMARKS SAIL Bansal Service Center Limited – A JV with Bansal Metal Works Ltd. for a Flat Product service DOWNSTREAM centre at Bokaro. SAIL SCL Kerala Limited – A JV with Govt. of Kerala STEEL PROCESSING for producing TMT Bars at Kozhikode. UNITS
Slide 36: 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 37: 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
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