Steel Authority Of India Limited · NSE:SAIL
Steel Authority Of India — Q4 FY2017-18 Earnings Presentation
39 slides from Steel Authority Of India's earnings presentation, May 2018
Slide 1: Performance Highlights Q4 & FY 2017-18
STEEL AUTHORITY OF INDIA LIMITED Performance Highlights Q4 & FY 2017-18
Slide 2: Performance Highlights: FY2017-18
PERFORMANCE HIGHLIGHTS : FY2017-18 Net Sales : Rs 56893 Crore FINANCIAL EBITDA : Rs 5184 Crore PERFORMANCE PBT : Rs (-) 759 Crore PAT : Rs (-) 482 Crore Hot Metal Production : 15.983 MT Crude Steel Production : 15.021 MT PRODUCTION Saleable Steel Production : 14.071 MT & SALES PERFORMA
Slide 3: Performance Highlights: Q4 FY2017-18
PERFORMANCE HIGHLIGHTS : Q4 FY2017-18 Net Sales : Rs 16811 Crore FINANCIAL EBITDA : Rs 2625 Crore PERFORMANCE PBT : Rs 1186 Crore PAT : Rs 816 Crore Hot Metal Production : 4.238 MT Crude Steel Production : 4.004 MT PRODUCTION & SALES Saleable Steel Production : 3.610 MT PERFORMANCE S
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
FINANCIAL PERFORMANCE 2625 All figures in Rs crore 1664 Quarterly 1186 816 Performance 110 Q4 FY 18 vs -27 Q4 FY 17 -771 -1419 Q4 FY 17 Q4 FY 18 2625 EBITDA Cash Profit Quarterly PBT 1664 PAT 1571 Performance 1186 Q4 FY 18 vs 803 816 Q3 FY 18 82 43 Q3 FY18 Q4 FY18
Slide 6: Financial Performance: Net Worth and Borrowings
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 FY 18 FY 17 Q4 FY 18 Q3 FY 18 Q4 FY 17 (INDAS Compliant figures) Net Sales 56893 43866 16811 15193 12535 EBITDA 5184 672 2625 1571 110 Depreciation 3065 2680 848 760 744 Finance Cost 2823 2528 917 675 720 PBT Before Exceptional Items -703 -4536 859 137 -1354 Exception
Slide 8: Production Performance
PRODUCTION PERFORMANCE All figures In Million Tonne 13.9 14.1 3.63 3.61 12.9 12.8 12.4 SALEABLE STEEL PRODUCTION (incl. SSPs) FY 14 FY 15 FY 16 FY 17 FY 18 Q4 FY17 Q4 FY18 Annual Quarter 3.51 3.54 13.4 13.8 12.4 12.4 11.9 SALEABLE STEEL PRODUCION (5 ISPs) Q4 FY17 Q4 FY18 FY 14 FY 15 FY 16 FY 17 FY 1
Slide 9: Production Performance: FY18
PRODUCTION PERFORMANCE : FY18 11.0% 1.3% CRUDE STEEL BOF 14.8% Ingot PRODUCTION EAF Route BY PROCESS THF CC 85.2% Route 87.7% SALEABLE STEEL 44.7% Commodity PRODUCTION BY PROCESS 55.3% Value Added
Slide 10: Production Performance: FY 2017-18 Product Mix
PRODUCTION PERFORMANCE : FY 2017-18 SAIL 18.9% PRODUCT MIX : 53.2% 5 ISPs 27.9% 28.0% 58.4% 13.7% BSP 30.5% 69.5% DSP Flats RSP 97.8% 2.2% Longs Semis 99.3% 0.7% BSL 60.7% 39.3% ISP
Slide 11: Production Performance
PRODUCTION PERFORMANCE Parameter FY FY MAJOR 17-18 16-17 TECHNO-ECONOMIC Coke Rate (kg/thm) 456 473 PARAMETERS Fuel Rate (kg/thm) 555 559 Specific Energy Consumption 6.49 6.60 (GCal/TCS) BF Productivity (T/m3/day) 1.70 1.67 3 LABOUR PRODUCTIVITY 344 (tcs/man/year) 315 320 MANPOWER & 278 302 258 LABO
Slide 12: Sales Performance
SALES PERFORMANCE All figures In Million Tonne 14.1 13.1 3.7 12.1 12.1 3.4 11.7 TOTAL SALES (incl. SSPs) FY 14 FY 15 FY 16 FY 17 FY 18 Q4 FY 17 Q4 FY 18 Annual Quarterly 3.7 13.8 3.3 12.7 11.6 11.2 11.7 SALES OF 5 ISPs Q4 FY 17 Q4 FY 18 FY 14 FY 15 FY 16 FY 17 FY 17
Slide 13: Power Consumption – FY 2017-18
POWER CONSUMPTION – FY 2017-18 9.50% Own CPP Drawl from Grid 55.32% 35.18% JV CPP
Slide 14: SAIL Stock Price Movement
SAIL STOCK PRICE MOVEMENT SAIL's Share Price (Rs.) Sensex Points 35965 34906 32515 33149 32969 31146 31284 28052 27930 28743 34057 34184 35160 26668 27000 26627 33213 29621 29918 30922 31730 28452 27866 26653 27656 89 78 77 78 78 92 70 64 61 61 60 58 63 83 57 61 54 48 52 46 52 49 47 43 45 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 FY 18 12% Structurals 7% HR Plates/Coils/Sh eets/skelp 28% Bars & Rods 18% Galvanized PET Rly Products Products CR Products PM Plates 8% 3% Coils/Sheets 1% 17% 11% Semis 12% Structurals HR 14%
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) except HDGL
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 Li ited 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 Ltd.
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 stat
Steel Authority of India — Q4 FY2017-18 Earnings Presentation on 6ix