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Performance
SAIL’s Expansion Plan
CSR & Environment Management
Awards & Accolades
9 months FY’10 Turnover of Rs. 30,929 crore –decrease of 13% over CPLY.
9 months FY’10 PBT – Rs.7065 crore –nearly same as that of CPLY.
9 months FY’10 PAT - Rs.4669 crore – nearly same as that of CPLY.
9 months FY’10 EBIDTA of Rs.8331 crore - nearly same as that of CPLY
9 months FY’10 EBIDTA to Net Sales of 29% Annualised PAT / Net worth of 19%Debt / Equity Ratio: 0.47:1 as on 31.12.2009
against 0.27:1 as on 31.03.2009. EPS of Rs.15.07, annualised
Financial Results –9 Months FY’10 vs. 9 Months FY’09
Rs. Crore Apr 09Dec 09
Apr 08Dec 08
Increase(+)Decrease(-)
% Change
TURNOVER 30929 35674 (-)4745 (-) 13.3%
EBIDTA 8331 8284 (+) 48 (+) 0.6%
PBT 7065 7116 (-)51 (-) 0.7%
PAT 4669 4688 (-)19 (-) 0.4%
Financial Results –9 Months FY 2009-10vs. 9 Months FY 2008-09
2000
4000
6000
8000
10000
12000
2005-06 2006-07 2007-08 2008-09
5706
9423
11469
9403
2000
4000
6000
8000
9Months FY 09 9Months FY10
7116 7065
PBT (Rs. Cr.) PBT (Rs. Cr.)
Profit Before Tax of Rs.9403 crore in FY 2008-09
9 MONTHS FY10 PBT –Rs.7065 crore
Financial Performance
10002000300040005000600070008000
2006-07 2007-08 2008-09
6202
7537
6175
1000
2000
3000
4000
5000
9Months FY 09 9Months FY 10
4688 4669
PAT (Rs. Cr.)PAT (Rs. Cr.)
Profit after Tax of Rs.6175 crore in 2008-09.
Financial Performance
9 Months FY10 PAT– Rs.4669 crore
30000
33000
36000
39000
42000
45000
48000
'06-07 '07-08 '08-09
39189
45555
48681
Year
Unit : Rs Crore
20000230002600029000320003500038000
9Months FY'09
9Months FY'10
35674
30929
9 MONTHS FY10 Turnover of
Rs 30929 crore Turnover of Rs.48681 crore in FY 08-09
Best ever Sales Turnover
1257
2519 2536
843
1663 1676
200
1200
2200
Q3 FY 09 Q2 FY 10 Q3 FY 10
(Rup
ees
in c
rore
)
PBT PAT
5000650080009500
110001250014000
2006-07 2007-08 2008-09
10967
12955
10942
4000
6000
8000
10000
9Months FY09
9Months FY10
8284 8331
Earning Before Interest Depreciation and Tax Unit : Rs Crore
EBIDTA for 2008-09 Rs. 10,942 crore EBIDTA for 9 Months FY10
Rs. 8,331 crore
8000
9500
11000
12500
14000
2006-07 2007-08 2008-09
1063512704
10689
3000
5000
7000
9000
9Months FY09 9Months FY10
8072 8064
Cash Profits
Unit : Rs Crore
Cash profit for 2008-09 Rs. 10,689 crore
Cash profit for 9 Month FY10 Rs. 8064 crore
Borrowings
6371
14903
212
267
200
300
4000
6000
8000
10000
12000
14000
16000
31.12.08 31.12.09
Borrowings Interest Cost
Borr
owin
gs
Inte
rest
Cos
t Q
1
2000
3000
4000
5000
6000
7000
8000
31-03-06 31-03-07 31-03-08 31-03-09
4298 4181
3045
7539
Borrowing Annual
Year 31-12-2008 31-09-2009 31-12-2009D/E Ratio 0.12 0.38 0.47
Unit : Rs Crore
Investments
16126
23509
1222
1385
1200
1400
10000
15000
20000
25000
31-Dec-08 31-Dec-09
Investments Interest Earned
Shor
t Te
rm In
vest
men
t in
Ban
ks
Inte
rest
Ear
ned
9 M
onth
s
3000
6000
9000
12000
15000
18000
3/31/2006 31-03-07 31-03-08 31-03-09
5645
9034
13136
17714
Investments Annual Unit : Rs Crore
Investment in short term deposits with Banksas on 31-03-2009 Rs. 17,714 crore
Investment in short term deposits with Banksas on 31-12-2009 Rs. 23,509 crore
Net Worth
27116
32046
25000
27000
29000
31000
33000
31-Dec-08 31-Dec-09
4000
9000
14000
19000
24000
29000
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
4659
1001112386
17184
23004
27984
Unit : Rs Crore
Net Worth as on 31-03-2009 Rs. 27,984 crore
Net Worth as on 31-12-2009 Rs. 32,046 crore
Sales of 8.73 million tones - growth of 13.8% ascompared to corresponding period of last year.
Semis component in sales of saleable steel is 12% [ 5ISPs].
Saleable steel production of 9.37 million tones - growthof 2% as compared to corresponding period of last year.
Crude steel production of 10.18 million tones – growth of1%as compared to corresponding period of last year.
Special Steel Production 3.44 million tones - increase of20% as compared to corresponding period of last year.
Production through Concast 6.80 million tones - growthof 3% as compared to corresponding period of last year( CPLY).
Coke Rate at 516 kg/t - improvement by 2% over CPLY
Energy Consumption 6.74 (G.Cal/tcs) – improved by 1% over Corresponding Period Last Year.
Avg. Capacity utilisation (Saleable Steel) – 112%
Avg. Capacity utilisation (Hot Metal) – 105%
Avg. Capacity utilisation (Concast Production) – 129%
Performance Highlights – 9Months 2009-10
Major Techno Economic Parameters
Saleable Steel (in Million Tons)
1010.5
1111.5
1212.5
13
'06-07 '07-08 '08-09
12.613.0
12.5
4.000
8.000
12.000
9Months FY'09
9Months FY'10
9.1 9.4
April-December
Production
Including Special Steels Plants
Production of Value added products of 5 ISPs
1
1.5
2
2.5
3
3.5
4
'06-07 '07-08 '08-09
1.46
3.363.73
1.5
2.5
3.5
4.5
9Months FY 09
9Months FY 10
2.9
3.4
April-December
Special Steel Production
20% increase in production of Value Added Products
(in Million Tonnes)
Saleable Steel ProductionPlant-Wise, Quarter-Wise
1110 1134 111242
8 469
46040
5
499
483
865 817 866
95 90 106
0
200
400
600
800
1000
1200
Q3 FY09 Q2 FY10 Q3FY10
BSP DSP RSP BSL ISP
(in Thousand Tonne)
(Five Integrated Steel Plants Only)
2403
505 319
1203
165
1963
3289
887
1116
25
94
930
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
BSP DSP RSP BSL ISP
Semi FinishedFlat ProductsLong Products
Production of Saleable SteelPlant Wise Category wise
(in Million Tonnes)
2008-09 5 Integrated Steel Plants
Semis 18%
Flats 55%
Long 27%
Specific Energy Consumption (Gcal/TCS)
6
6.2
6.4
6.6
6.8
7
7.2
7.4
'06-07 '07-08 '08-09
7.16
6.95
6.74
6.00
6.20
6.40
6.60
6.80
7.00
9Months FY09 9Months FY10
6.78 6.74
Apr-Dec.’09
TE Parameters
Reduction in Energy Consumption
Coke Rate (Kg/THM)
500
510
520
530
540
550
9Months FY09 9Months FY10
525516
Continuous efforts to contain coke rate
500
510
520
530
540
550
560
'06-07 '07-08 '08-09
541
533
521
Coke Rate at 516 kg/thm –lower by 2% over CPLY
TE Parameters
200
205
210
215
220
225
230
'07-08 '08-09 9Months FY'09 9Months FY'10
214 215
223 224
Manpower reduction nearly 6141 during last one year.
Current manpower :1.18 lakh as on 31.12.09.
Tonne Crude Steel /man / year
Labour Productivity
2.5
3.0 3.0
3.8
2.7 2.6
2.4
3.6
2.83.0
2.9
1.5
2.0
2.5
3.0
3.5
4.0
Q1 Q2 Q3 Q4
2007-08 2008-09 2009-10
Including
Special
Steel
Plants
(In Million Tonnes)
Saleable Steel Sales Volume
0.9
1.1 1.1
0.7
0.8
0.8
0.40.4 0.5
0.3
0.5
0.4
0.1 0.1 0.1
0.0
0.5
1.0
1.5
Q3 FY09 Q2 FY10 Q3 FY10
BSP BSL DSP RSP ISP
Plant-wise,
Integrated
Steel
Plants
(In million tonne)
Saleable Steel Sales Volume
11.9
12.3
11.3
9.0
10.0
11.0
12.0
13.0
2006-07 2007-08 '08-09
Saleable Steel Sales Volume
Including Special Steel Plants
7.7
8.7
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
10.0
9Months FY09 9Months FY10
(in million tonne)
4.04.2
3.23.6
1.6 1.61.9
2.0
0.4 0.4
0.0
1.0
2.0
3.0
4.0
5.0
2008-09 2007-08
BSP BSL DSP RSP ISP
Plant-wiseSaleable Steel Sales Volume
(In Million Tonnes)
Sales through Dealers NetworkNo. of Dealers and Districts Covered
602 599
1897 1963
400
900
1400
1900
2400
31-03-2008 31-12-2009
Districts Covered Dealers Appointed
Sales through dealer’s network during 9 months FY104.18 lakh tonne (CPLY 3.41lakh tonne)
Sens
ex (
Poin
ts)
Shar
e Pr
ice
(Rs)
Month
Closing Share Price & Sensex as on the last day of the month – Except Jan2010
Performance of SAIL Share price vis-à-vis BSE Sensex
8376
96109
173
151
175
163171 165
197
242
223
94248892
9709
11403
14625 1449415670
1566717127
1589616926 17465 16780
7000
12000
17000
22000
27000
70
90
110
130
150
170
190
210
230
250
270
Jan09 Mar09 May09 Jul-09 Sep-09 Nov-09 Jan-10SAIL
SENSEX
Year Interim %
Final%
Total%
Dividend(Rs. in
Cr)
Dividend Tax (Rs.
in Cr)
2009-10
2008-09
2007-08
2006-07
16%
13.0
19.0
16.0
13.0
18.04
15.0
26.0
37.0
31.0
661
1074
1528
1280
111
181
259
197
Dividend
EXPANSION AND
MODERNISATION PLAN
Road Map For Future
SAIL’s Expansion Plan
ParticularsMillion Tonne
Present After Expansion
Hot metal 14.4 26.2 (23.5)
Crude Steel 13.4 24.6 (21.4)
Saleable Steel 12.5 23.1 (20.2)
Figures in bracket indicate capacity after Implementation of ongoing phase of modernisation and expansion to be
completed by 2012
Technology Current Status
After Expansion
BOF Steel making 77% 100%
CC Route 66% 100%
Pelletisation Plant No Yes
Coke Dry Quenching No Yes
Top Pressure Recovery Turbine No Yes
Auxiliary Fuel Injection in BF Partial coverage Full coverage
Desulphurization of Hot Metal Partly 100%
Thin Slab Casting - Compact Strip Mill No Yes
Beam Blank Casting No Yes
Coupled Pickling & Tandem Mill No Yes
Beneficiation Plant Partial Full
Expansion Plan : Technological Shift
Ongoing ProjectsThe ongoing expansion has been planned to achieve saleable
steel production of 20.23 million tonne, at a cost of Rs. 37,000 crore (USD 8 billion) approximately.
In addition, following capex has also been planned for schemes, as given hereunder:
Scheme Estimated cost
Value Addition/ Product-mix Improvement Rs. 7,000 crore (USD 1.5 billion)
Technological Upgradation/ Moderanisation Rs. 3,500 crore (USD 0.8 billion)
Sustenance including debottlenecking, AMR and Environment
Rs. 12,300 crore (USD 2.7 billion)
The above details of capex includes an amount of Rs. 7400 crore, including Rs. 6100 crore for expansion and Rs. 1300 for other schemes, already spent during 2007-08 and 2008-09.
Besides, capital schemes relating to augmentation of production from existing mines and development of new mines will be taken up.
3700037000
70003500
12300 22800
1 2 3 4 5
In R
upee
s C
rore
59800
1 Expansion of Existing capacity
2 Value Addition/ Product-mix Improvement
3 Technological Upgradation/ Moderanisation
4 Sustenance including debottlenecking, AMR and Environment
5 Total estimated cost
Ongoing Projects
2000
5000
8000
9Months FY09 9Months FY10
3231
7712
1500
3500
5500
'07-08 '08-09
2181
5233
Capital Expenditure on Expansion and Moderanisation
Amount in Rs. Crore
Total Capex for 2007-08 was Rs. 2181 crore and the Capex for 2008-09 is Rs. 5233 Crore.
Orders for Rs.41,000 crore approximately have already been placed for various Modernisation / Expansion Projects/ Sustenance Schemes.
Various options for raising fund to finance the capex plan are being explored.
Capex Plan for 2009-10 is Rs.10000 crore approximately.
Ongoing Projects
Ongoing Projects
Expected Outcome
Enhancement of Production Capacity and Market Share
World Class Technology and Products
Improved Product mix/ proportion of value added products to increase
Complete elimination of Semi-finished steel
Enhanced Pollution control measures, with environmental conservation
Captive Power generation capacity to increase from 872 MW to 1922 MW
Ongoing ProjectsThe Products to be added:
Auto grade CR Products, Galvanealed Coils/ Sheets
Plates/ Pipes to meet up to API 100 Grade specification
Universal Beams/ Heavy Beams in the sizes up to 1100 mm to support increasing Infrastructural requirements
Rails for Metro-Railways
Increased production of Rails and wheels to meet the increasing requirements of Indian Railways
Quantum jump in Rounds and Structural production leading to elimination of entire semi-finished steel
Wider Plates in the size of 4300 mm
Plant Hot Metal (Mtpa) Saleable Steel (Mtpa)2008-09 Actual
After Expansion
2008-09Actual
After Expansion (2012)
BSP 5.4 7.5( 7.5) 4.5 6.5 (6.5)DSP 2.1 3.5(2.5 ) 1.8 2.8 (2.1)RSP 2.2 4.5(4.5 ) 2.0 4.0 (4.0)BSL 4.0 7.4(5.8 ) 3.4 6.5 (4.2)ISP 0.6 2.9(2.9) 0.4 2.4 (2.4)VISL 0.1 0.3 (0.3) 0.1 0.2 (0.2)ASP - - 0.2 0.4 (0.4)SSP - - 0.2 0.3 (0.3)Total 14.4 26.2(23.5) 12.5 23.1 (20.2)
Capacity increase after Expansion
Figures in brackets indicate capacity after implementation of on going phase of modernisation and expansion to be completed by 2012.
SAIL’S Growth PlanSaleable Steel Production Capacity
Mill
ion
Tonn
e
4.5
1.8 2.03.4
0.4
2.0
1.02.0
3.1
2.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
BHILAI DURGAPUR ROURKELA BOKARO IISCO
Production 08-09 Planned Increase
6.5
4.0
2.42.8
6.5
SAIL’S Growth PlanSaleable Steel Production Capacity
Specialty Steel PlantsM
illio
n To
nne
0.090.17 0.18
0.13
0.260.16
0.00
0.50
VISL ASP SSP
Planned Increase Production 2008-09
0.22
0.34
0.43
Total Existing .45 MT and After Expansion 1MT
RAILWAY MATERIALS
7.4%STRUCTURALS
15.0%
CR COILS / SHEETS
10.4%
COATED PRODUCTS
4.8%
ROUNDS / BARS23.3%
PIPES0.6%
PLATES16.4%
HR COILS / SHEETS
22.1%
Product Mix - Saleable Steel Production
PLATES20.5%
HR COILS / SHEETS
24.1%
RAILWAY MATERIALS
8%
STRUCTURALS5.5%
CR COILS / SHEETS
8.7%
COATEDPRODUCTS
2.8%
ROUNDS/BARS10.2%
SEMIS18.4%
PIPES0.5%
FY2008-09
After Expansion
IRON ORE LINKAGES
Year Hot Metal Production
Iron Ore Consumption
Linkages of Iron Ore
2008-09 14.4 23 Existing Mines
Post Expansion 26 43
Existing Mines + Raoghat, Chiria & Taldih + Thakurani
2020 60 100Existing Mines + Raoghat, Chiria & Taldih + Thakurani
Mtpa
Raw Materials
COAL LINKAGESMtpa
Year Hot Metal Production
Coking Coal Requirement
Linkages for Coking Coal
2008-09 14.4 13.8 Import Component – 70% Indigenous – 30%
Post Expansion 26 23
-Import component to increase-Long term component 90% w.e.f. FY09-Existing mines to be worked/ developed-New alliances/ linkages/ acquisitions to be explored
2020 ~ 60 50
Raw Materials
In-principle approval from Government of Jharkhandfor renewal of Budhaburu, one of the Chira/ Gua iron-ore leases, with reserve of nearly 810 milliontonne, has been accorded. Lease deed for mining of iron ore for Rowghatdeposits was signed in October 2009. With this allstatutory clearances for development of new mine atRowghat has been obtained. After statutory approvals, the production at newTasra collieries has started in November 2009 Action for merger of MEL with SAIL is under process. Setting up of a Joint Venture shipping company withShipping Corporation of India is under progress.
SAIL and POSCO are jointly conductingfeasibility study for utilising FINEXtechnology Feasibility study for setting up CRNO
production facility jointly with POSCO isalso being conducted.
MOU has been signed between SAIL andNMDC for development of Arki LimestoneMine at Himachal Pradesh.
79 villages have been adopted by SAIL as Model Steel Villagesacross 8 states for development of Medical facilities, Education,Roads, Sanitation, Community Centre, livelihood generation &sports facilities in a phased manner. During 2009-10 59 villagesare likely to be completed as Model steel Village.
Corporate Social Responsibility –Model Villages
Performance Highlights – SAIL CSRSAIL has established 61 Primary Health Centres, 8
Reproductive and Child Health Centres, 18 Hospitals and 6Super Specialty Hospitals to provide specialized healthcareto almost 26.7 million people.
It has opened about 138 school in the steel townships toprovide modern education to about 74,000 children. Besidesadopting & providing education & facilities to Tribalchildren, SAIL has provided assistance to over 260 schoolswith more than 55000 students of villages surrounding itsunits.
In this Endeavour, SAIL has achieved a Girl:Boy ratio of 1:1for all levels of education and a survival rate i.e. rate ofretaining enrolled students of 90% in SAIL secondary schools.
•SAIL is providing access to around 56 lakhpeople across 435 villages since inception byconstructing & repairing roads.•By installing 4714 water sources providedwater access to around 37 lakh peopleliving in far flung areas.•More than 4274 health camps have beenorganized in 2009-10 up to December2009, benefiting more than 1.9 lakh people.
Performance Highlights – SAIL CSR
For the financial year 2008-09, the budget for CSR was earmarked as 2% of distributable surplus.
SAIL was adjudged a Finalist of ‘Stivie Award – 2009’.
Bhilai Steel Plant (BSP) – SAIL has been awarded “Golden Peacock Award – 2008” for CSR.
Salem Steel Plant (SSP) – SAIL has been awarded “CSR Award” by Tamilnadu Government for the year 2008-09 for its valuable contribution towards socio-economic upliftment of neglected section of society.
SAIL has bagged the National “National Centre for Promotion of Employment for disabled people (NCPEDP) Shell Helen Keller Award-2009”.
Performance Highlights – SAIL CSR
Outstanding Achievement for Rural and Community Development
Accolades
Accolades
•BSP won Prime Minister’s trophy for the best integratedSteel Plant for the year 2006-07 and 2007-08. BSP has theunique distinction of being adjudged as best integratedsteel plant nine out of total 16.
•Seven Indian Institute Metals Awards won by SAIL whichincluded Metallurgist of the year award, MECONaward, National Sustainability award to BSP and SSP.
•SAIL has won the National Centre for promotion ofemployment for disabled people (NCPEDP) – Helen KellerAward 2009 in the organisational category for promotion ofemployment to disabled people.
Two MoU Excellence Awards in the categories ‘Mining &Metals’ and ‘Listed Companies’ for the year 2007-08.
The Gold Trophy of SCOPE Award for Excellence and Outstanding Contribution to PublicSector Management in the ‘Instituitional’ category for the year 2006-07.
SCOPE Award for ‘Excellence and Outstanding Contribution to Public Sector Management’ Under ‘Individual’ category, for the year 2007-08, to SAIL Chairman, Mr. S K Roongta.
•Gold Trophy of ‘SCOPE Meritorious Award for R &D, Technology Development & Innovation’ for 2007-08.
•In the National Convention of Quality Circles held atBangalore on 21st and 22nd December ’09 22 ‘par-excellence’, 33 ‘excellent’ and 5’distinguished’ awards werebagged by SAIL teams, which is the highest won by any singleorganisation in the country.
•First prize of the national Energy Conservation Awards 2009in the Integrated Steel Plants Sector was awarded to DSPand presented by Hon’ble Union Minister of Power on 14thDecember 2009.
•Institution of Engineers(India) awarded the Dr. MVisvesvaraya Award-2009 and the SAIL Award 2009 to SAILRDCIS team.
AccoladesIn the SCOPE & DPE function SAIL received 4 awards from Hon’ble
Prime Minister which was highest amongst all PSUs Including:
SCOPE Gold Trophy for ‘Excellence & Outstanding Contributionto the Public Sector Management’ – Institutional Category 2006-07
Two Mou Excellence Awards in the categories of ‘Mining &Metals’ and ‘Listed Companies’ for the year 2007-08.
SAIL was awarded ‘SAFA Best Presented Accounts Award 2008’ in thePSE category (Runners Up) by South Asian Federation ofAccountants (SAFA).
8 Gold, 1 Silver and 6 Bronze awards won by SAIL employees’ teamin the International Quality Circle meet held in Cebu, Philippninesin October 09 – highest for any organisation in the country.
•BSP won Prime Minister’s trophy for the best integratedSteel Plant for the year 2006-07 and 2007-08. BSP hasthe unique distinction of being adjudged as bestintegrated steel plant nine out of total 16.
•Seven Indian Institute Metals Awards won by SAIL whichincluded Metallurgist of the year award, MECONaward, National Sustainability award to BSP and SSP.
•Salem Steel Plant received National sustainability Award– First Prize amongst the secondary steel plants/alloysteel plants by the Indian Institute of Metals.
Accolades
Shri Soiles Bhattacharya, Director (Finance) – SAIL, has been awarded as withthe Best CFO award for the year 2009 by Top Ranker’s institute in associationwith Graduate school of Business and administration.
Abbreviations used
ASP Alloy Steels Plant BF Blast Furnace BOF Basic Oxygen Furnace BPL Below Poverty Line BSL Bokaro Steel Limited BSP Bhilai Steel Plant CS Crude Steel CPLY Corresponding Period Last Year DSP Durgapur Steel Plant EBIDT Earnings Before Interest Depreciation & Taxes G.Cal/tcs Giga Calories per tonne of Crude Steel GoI Government of India IISI International Iron & Steel Institute ISP IISCO Steel Plant
JPC Joint Plant Committee Kg/thm Kilo Gram Per Tonne of Hot Metal MEL Maharashtra Elektrosmelt Limited MT Million Tonne Mtpa Million Tonne Per Annum PAT Profit After Tax PBT Profit Before Tax RDCIS Research & Development Centre for Iron & Steel RINL Rashtriya Ispat Nigam Limited RSP Rourkela Steel Plant SSP Salem Steel Plant VISL Visvesvaraya Iron & Steel Plant
Abbreviations used
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, statement describing the Company’s projections, estimates, expectations
are “forward looking statements” within the meaning of applicable securities laws
and regulations. Actual results may differ materially from those expressed
depending on the circumstances / situations.
Major factors that could affect the Company’s operations include, among
others, economic conditions affecting demand / supply and prices in the domestic
and global markets in which the Company operates, changes in Government
regulations, tax laws and other statutes etc.
Disclaimer
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