Steel Authority Of India Limited · NSE:SAIL
Steel Authority Of India — Q3 FY2018-19 Earnings Presentation
39 slides from Steel Authority Of India's earnings presentation, February 2019
Slide 1: Performance Highlights 9M & Q3 FY 2018-19
STEEL AUTHORITY OF INDIA LIMITED Performance Highlights 9M & Q3 FY 2018-19
Slide 2: Performance Highlights: 9M FY2018-19
PERFORMANCE HIGHLIGHTS : 9M FY2018-19 Net Sales : Rs 47944 Crore FINANCIAL EBITDA : Rs 7806 Crore PERFORMANCE PBT : Rs 2626 Crore PAT : Rs 1710 Crore Hot Metal Production : 12.842 MT Crude Steel Production : 11.928 MT PRODUCTION & SALES Saleable Steel Production : 10.946 MT PERFORMANCE
Slide 3: Performance Highlights: Q3 FY2018-19
PERFORMANCE HIGHLIGHTS : Q3 FY2018-19 Net Sales : Rs 15660 Crore FINANCIAL EBITDA : Rs 2653 Crore PERFORMANCE PBT : Rs 950 Crore PAT : Rs 616 Crore Hot Metal Production : 4.601 MT Crude Steel Production : 4.281 MT PRODUCTION & SALES Saleable Steel Production : 3.795 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 Nine Monthly
FINANCIAL PERFORMANCE 2653 2479 Quarterly 1804 1674 1560 Performance 950 848 Q3 FY 19 vs 616 554 803 Q2 FY 19 vs 82 43 Q3 FY 18 Q3 FY 19 Q2 FY 19 Q3 FY 18 All figures in Rs crore 7806 EBITDA Cash Profit 5120 Nine PBT Monthly PAT 2626 2528 1710 Performance 919 9M FY 19 vs 9M FY 18 -1297 -1945 9M FY19
Slide 6: Financial Performance: Net Worth, Borrowings, 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 9MFY19 9MFY18 Q3 FY 19 Q2 FY 19 Q3 FY 18 (INDAS Compliant figures) Sales 47944 41486 15660 16541 15190 EBITDA 7806 2528 2653 2479 1560 Depreciation 2494 2216 855 826 760 Finance Cost 2352 1906 825 771 675 PBT Before Exceptional Items 2960 -1594 973 882 126 Exceptional
Slide 8: Production Performance
PRODUCTION PERFORMANCE All figures In Million Tonne 13.9 14.1 12.9 12.8 12.4 10.46 10.95 SALEABLE STEEL PRODUCTION (incl. SSPs) FY 14 FY 15 FY 16 FY 17 FY 18 9M FY18 9M FY19 Annual 9 Monthly 13.4 13.8 10.23 10.66 12.4 12.4 11.9 SALEABLE STEEL PRODUCION (5 ISPs) 9M FY18 9M FY19 FY 14 FY 15 FY 16 FY 1
Slide 9: Production Performance: 9M FY19
PRODUCTION PERFORMANCE : 9M FY19 12.0% 1.3% CRUDE STEEL BOF 15.7% Ingot PRODUCTION EAF Route BY PROCESS THF CC 84.3% Route 86.7% SALEABLE STEEL 43.6% Commodity PRODUCTION BY PROCESS 56.4% Value Added
Slide 10: Production Performance: 9M FY19 Product Mix
PRODUCTION PERFORMANCE : 9M FY 19 SAIL 20.5% PRODUCT MIX : 52.4% 5 ISPs 27.1% 26.8% 60.5% 12.7% BSP 31.9% 68.1% DSP Flats RSP 89.8% 10.2% Longs Semis 99.5% 0.5% BSL 61.2% 38.8% ISP
Slide 11: Production Performance
PRODUCTION PERFORMANCE Parameter 9M FY H1 FY MAJOR 18-19 18-19 TECHNO-ECONOMIC Coke Rate (kg/thm) 457 460 PARAMETERS Fuel Rate (kg/thm) 562 564 Specific Energy Consumption 6.55 6.58 (GCal/TCS) BF Productivity (T/m3/day) 1.60 1.55 3 LABOUR PRODUCTIVITY (tcs/man/year) MANPOWER & 362 407 377 344 LABOUR
Slide 12: Sales Performance
SALES PERFORMANCE All figures In Million Tonne 14.1 13.1 12.1 11.7 12.1 10.34 9.98 TOTAL SALES (incl. SSPs) FY 14 FY 15 FY 16 FY 17 FY 18 9M FY 18 9M FY 19 Annual 9 Monthly 13.8 12.7 11.6 11.2 11.7 10.11 9.73 SALES OF 5 ISPs 9M FY 18 9M FY 19 FY 14 FY 15 FY 16 FY 17 FY 17
Slide 13: Power Consumption – 9M FY19
POWER CONSUMPTION – 9M FY 19 9.53% Own CPP Drawl from Grid 49.83% Purchase from Power 38.47% Exchange JV CPP 2.17%
Slide 14: SAIL Stock Price Movement
SAIL STOCK PRICE MOVEMENT SAIL's Share Price (Rs.) Sensex Points 38645 36917 35160 36068 35423 34442 32515 33149 34184 31284 37607 36194 29918 35965 36227 36257 28743 29621 34057 35322 33213 32969 31146 30922 31730 92 89 77 83 78 83 80 78 70 76 78 63 60 57 58 61 64 56 54 68 47 49 61 61 55 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 9M FY 19 8% Structurals 8% HR Plates/Coils/Sh eets/skelp Bars & Rods 30% 18% Galvanized Rly Products 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 — Q3 FY2018-19 Earnings Presentation on 6ix