Performance
SAIL’s Expansion Plan
CSR & Environment Management
Awards & Accolades
H1 FY’10 Turnover of Rs. 20,481 crore – decreaseof 20% over CPLY.H1 FY’10 PBT – Rs.4529 crore –decrease of 23%H1 FY’10 PAT of Rs.2994 crore - decrease of 22%H1 FY’10 EBIDTA of Rs.5346 crore decrease of 19%H1 FY’10 EBIDTA to Sales of 28%PAT / Net worth of 19%Debt / Equity Ratio: 0.38:1 as on 30.09.2009
against 0.27:1 as on 31.03.2009.EPS of Rs.14.50, annualised
Financial Results –H1 FY’10 vs. H1 FY’09
Rs. Crore July 09Sept. 09
July 08Sept. 08
Increase(+)Decrease(-)
% Change
TURNOVER 10730 13544 (-) 2815 (-) 21%
EBIDTA 2925 3434 (-) 509 (-) 15%
PBT 2519 3067 (-) 548 (-) 18%
PAT 1663 2010 (-) 347 (-) 17%
Financial Results –Q2 FY 2009-10vs. Q2 FY 2008-09
5706
9423
11469
9403
2000
4000
6000
8000
10000
12000
2005-06 2006-07 2007-08 2008-09
500150025003500450055006500
H1 FY 09 H1 FY10
58604529
PBT (Rs. Cr.) PBT (Rs. Cr.)
Profit Before Tax of Rs.9403 crore in FY 2008-09
H1 FY10 PBT – Rs.4529 crore
Financial Performance
6202
7537
6175
10002000300040005000600070008000
2006-07 2007-08 2008-09
1000
2000
3000
4000
5000
H1 FY 09 H1 FY 10
3845
2994
PAT (Rs. Cr.)
PAT (Rs. Cr.)
Profit after Tax of Rs.6175 crore in 2008-09.
Financial Performance
H1 FY10 PAT– Rs.2994crore
39189
45555
48681
30000
33000
36000
39000
42000
45000
48000
'06-07 '07-08 '08-09
Year
Unit : Rs Crore
25728
20481
15000
18000
21000
24000
27000
30000
H1 FY'09 H1 FY'10Year
H1 FY10 Turnover of Rs 20481 crore Turnover of Rs.48681 crore in FY 08-09
Best ever
Sales Turnover
2006
2519
2010
13261663
3067
500
1500
2500
3500
Q2 FY 09 Q1 FY 10 Q2 FY 10
(Rup
ees
in c
rore
)
PBT PAT
The profits of Q1 FY10 excludes profit for Q1 FY10 of SAIL Refractory Unit (earlier known as Bharat Refractories Limited) which has been merged with SAIL
10967
12955
10942
5000650080009500
110001250014000
2006-07 2007-08 2008-09
66005346
2000
4000
6000
8000
H1 FY09 H1 FY10
Earning Before Interest Depreciation and Tax Unit : Rs Crore
10635
12704
10689
5000650080009500
110001250014000
2006-07 2007-08 2008-09
64965189
2000
4000
6000
8000
H1 FY09 H1 FY10
Cash Profits
Unit : Rs Crore
Borrowings
3251
11784
157
104
0
2000
4000
6000
8000
10000
12000
14000
30-Sep-08 30-Sep-0990
120
150
180Borrow ings
Interest Cost
Borr
owin
gs
Inte
rest
Cos
t H
1
4298 4181
3045
7539
2000
3000
4000
5000
6000
7000
8000
31-03-06 31-03-07 31-03-08 31-03-09
Borrowing Annual
Year 30-09-2008 31-03-2009 30-06-2009 30-09-2009D/E Ratio 0.12 0.27 0.30 0.38
Unit : Rs Crore
Short Term Investments in Banks
16437
21951
1004
742
10000
15000
20000
30-Sep-08 30-Sep-09500
700
900
1100
Investments Interest Earned
Shor
t Te
rm In
vest
men
t in
Ban
ks
Inte
rest
Ear
ned
H1
5645
9034
13136
17714
3000
6000
9000
12000
15000
18000
3/31/2006 31-03-07 31-03-08 31-03-09
Unit : Rs Crore
Net Worth
26908
31135
240002500026000270002800029000300003100032000
30-Sep-09 30-Sep-10
Net Worth
4659
10011 12386
17184
23004
27984
4000
9000
14000
19000
24000
29000
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09
Unit : Rs Crore
Sales of 5.79 million tones - growth of 9.0% ascompared to corresponding period of last year.
Saleable steel production of 6.20 million tones -growth of 1% as compared to corresponding period oflast year.
Crude steel production of 6.674 million tones – similarto corresponding period of last year.
Special Steel Production 2.32 million tones - increaseof 18% as compared to corresponding period of lastyear.
Production through Concast 4046 million tones -growth of 1% as compared to corresponding period oflast year( CPLY).
Coke Rate at 515 kg/T - improvement by 2.6% over CPLY
Energy Consumption 6.76 (G.Cal/tcs) – improved by 1%over Corresponding Period Last Year.
Avg. Capacity utilisation (Saleable Steel) – 112%
Avg. Capacity utilisation (Hot Metal) – 103%
Avg. Capacity utilisation (Concast Production) – 114%
Performance Highlights – H1 2009-10Major Techno Economic Parameters
Saleable Steel (in Million Tons)
12.613.0
12.5
1010.5
1111.5
1212.5
13
'06-07 '07-08 '08-09
6.1 6.2
2.000
4.000
6.000
8.000
H1 FY'09 H1 FY'10
April-Sept.
Production
Including Special Steels Plants
Production of Value added materials of 5 ISPs
1.46
3.363.73
1
1.5
2
2.5
3
3.5
4
'06-07 '07-08 '08-09
2.0
2.3
0.5
1.5
2.5
H1 FY 09 H1 FY 10
April-Sept.
Special Steel Production
18% increase in production of Value Added Products
(in Million Tonnes)
Saleable Steel ProductionPlant-Wise, Quarter-Wise
11341061
1136
469
462
444
499
463
520
817871854
97 101
90
0
200
400
600
800
1000
1200
Q2 FY09 Q1 FY10 Q2FY10
BSP DSP RSP BSL ISP
(in Thousand Tonnes)
(Five Integrated Steel Plants Only)
1105
218 147
603
104951
1663
487
60911
24
430
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)
7.166.95
6.74
66.26.46.66.8
77.27.4
'06-07 '07-08 '08-09
6.82 6.76
6.006.206.406.606.807.007.207.40
H1 FY09 H1 FY10
April-Sept.’09
TE Parameters
Reduction in Energy Consumption
Coke Rate (Kg/THM)
529
515
500
510
520
530
540
550
H1 FY09 H1 FY10
Continuous efforts to contain coke rate
541
533
521
500510520530540550560
'06-07 '07-08 '08-09
Coke Rate at 515 kg/Thm - lower by 3% over CPLY
TE Parameters
214 215
223225
200
205
210
215
220
225
230
'07-08 '08-09 Q2FY'09 Q2FY'10
Manpower reduction nearly 7800 during last one year.
Current manpower : 1.18 lakh as on 30.09.09.
Tonne Crude Steel /man / year
Labour Productivity
2.5
3.0 3.0
3.8
2.7 2.6
2.4
3.6
2.8
3.0
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
0.8
0.40.5
0.1
1.10.90.9 0.9
0.7
0.40.40.50.5
0.10.1
0.0
0.5
1.0
1.5
Q2 FY09 Q1 FY10 Q2 FY10
BSP BSL DSP RSP ISPPlant-wise, Integrated Steel Plants
(In million tonnes)
Saleable Steel Sales Volume
11.3
12.311.9
9.0
10.0
11.0
12.0
13.0
2006-07 2007-08 '08-09
Saleable Steel Sales Volume
Including Special Steel Plants
5.35.8
0.01.0
2.03.0
4.05.0
6.07.0
H1FY09 H1 FY10
(in million tonnes)
4.24.03.6
3.2
1.61.62.01.9
0.40.4
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
588
1861
400
900
1400
1900
2400
30-09-2009
Districts Covered Dealers Appointed
2.24 lakh tonnnes of Steel was sold through Dealers network during April-Sept. 2009.
Sens
ex (
Poin
ts)
Shar
e Pr
ice
(Rs)
Month
Closing Share Price & Sensex as on the last day of the month
Performance of SAIL Share price vis-à-vis BSE Sensex
163 165
85
67
7883
76
96
109
173
151
175171
14494
1567014625
11403
9709
15896
9788
15667
889294249093
9647
17127
50
70
90
110
130
150
170
190
Oct08 Dec08 Feb09 Apr09 Jun09 Aug-09
30-Oct-09
7000
12000
17000
22000
27000
SAIL
SENSEX
Year Interim %
Final%
Total%
Dividend(Rs. in Cr)
2008-09
2007-08
2006-07
13.0
19.0
16.0
13.0
18.04
15.0
26.0
37.0
31.0
1074
1528
1280
Dividend
EXPANSION AND
MODERNISATION PLAN
Road Map For Future
SAIL’s Expansion Plan
ParticularsMillion Tonne
Present After Expansion
Hot metal 15.2 26.2 (23.5)
Crude Steel 14.0 24.6 (21.4)
Saleable Steel 13.0 23.1 (20.2)
Figures in bracket indicate capacity after Implementation of ongoing phase of moderanisation 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
Raw Material Beneficiation Plant Partial Full
Expansion Plan : Technological Shift
Ongoing ProjectsThe ongoing moderanisation and expansion has been planned to
achieve saleable steel production of 20.23 million tonne, at a costof Rs. 37,000 crore (USD 7.4 billion) approximately.
In addition, following capex has also been planned for schemes, asgiven hereunder:
Scheme Estimated cost
Value Addition/ Product-mix Improvement Rs. 7,000 crore (USD 1.4 billion)
Technological Upgradation/ Moderanisation Rs. 3,500 crore (USD 0.7 billion)
Sustenance including debottlenecking, AMR and Environment
Rs. 12,300 crore (USD 2.5 billion)
The above details of capex includes an amount of Rs. 7400crore, including Rs. 6100 crore for expansion and Rs. 1300 for otherschemes, already spent during 2007-08 and 2008-09.
Besides, capital schemes relating to augmentation of productionfrom existing mines and development of new mines will be takenup.
3700037000
7000 3500
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
1925
4920
1000
3000
5000
H11 FY09 H1 FY10
2181
5233
1500
3500
5500
'07-08 '08-09
Capital Expenditure on Expansion and Moderanisation
Amount in Rs. Crore
Total Capex for 2007-08 was Rs. 2181 croreand the Capex for 2008-09 is Rs. 5233 Crore.
Orders for Rs.37,000 crore approximatelyhave already been placed for variousModernisation / Expansion Projects/Sustenance Schemes.
Various options for raising fund to financethe capex plan are being explored.
Capex Plan for 2009-10 is Rs.10000 croreapproximately.
Ongoing Projects
Ongoing Projects
Expected Outcome
Enhancement of Production Capacity and MarketShare
World Class Technology and Products
Improved Product mix/ proportion of value addedproducts to increase
Complete elimination of Semi-finished steel
Enhanced Pollution control measures, withenvironmental conservation
Captive Power generation capacity to increase from872 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 to supportincreasing Infrastructural requirements
Rails for Metro-Railways
Increased production of Rails and wheels to meet theincreasing requirements of Indian Railways
Quantum jump in Rounds and Structural productionleading to elimination of entire semi-finished steel
Wider Plates in the size of 4500 mm
Plant Hot Metal (Mtpa) Saleable Steel (Mtpa)2008-09 Actual
After Expansion
2008-09Actual
After Expansion (2012)
BSP 5.39 7.50 4.49 6.56 (6.56)DSP 2.11 3.50 1.79 2.83 (2.12)RSP 2.20 4.50 1.99 3.99 (3.99)BSL 4.02 7.44 3.38 6.53 (4.18)ISP 0.60 2.91 0.41 2.39 (2.39)VISL 0.13 0.33 0.09 0.22 (0.22)ASP - - 0.17 0.43 (0.43)SSP - - 0.18 0.34 (0.34)Total 14.44 26.18 12.50 23.29 (20.23)
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
1.01.9
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
3.9
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
Production 2008-09 Planned Increase
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
PIPES0.5%
RAILWAY MATERIALS
8%
STRUCTURALS5.5%
CR COILS / SHEETS
8.7%
COATED PRODUCTS
2.8%
ROUNDS/BARS10.2%
SEMIS18.4%
PLATES20.5%
HR COILS / SHEETS
24.1%
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
Bharat Refractories Limited has been merged withSAIL and shall be known as SAIL Refractory Unit. Action for merger of MEL with SAIL is under process. Setting up of a Joint Venture shipping company withShipping Corporation of India. SAIL has instituted an HR Award for Excellence, tocommemorate completion of 50 years of production.The expertise of IIM-A as ‘Knowledge Partner’ and ofEconomic Times as ‘Media Partner’ were utilised torecognise outstanding work done by companies duringthe last five years
79 villages have been adopted as Model Steel Villages across8 states for exclusive development of Medical facilities,Education, Roads, Sanitation, Community Centre etc. and15 such villages have already been completed.
Corporate Social Responsibility –Model Villages
Performance Highlights – SAIL CSR
SAIL has established 32 Primary Health Centres, 9Reproductive and Child Health Centres, 35 Hospitals and 7super Speciality Hospitals to provide specialized healthcareto almost 28 million people.
It has opened about 240 school in the steel townships toprovide modern education to about 76,000 children.
SAIL has adopted and providing assistance to over 1119schools, with more than 1,11,958 students of around 435villages surrounding its units.
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 schools.
For the financial year 2008-09, the budget for CSR wasearmarked as 2% of distributable surplus.
SAIL was adjudged a Finalist of ‘Stivie Award – 2009’.
Bhilai Steel Plant (BSP) – SAIL has been awarded “GoldenPeacock Award – 2008” for CSR.
Salem Steel Plant (SSP) – SAIL has been awarded “CSR Award”by Tamilnadu Government for the year 2008-09 for itsvaluable contribution towards socio-economic upliftment ofneglected section of society.
Akshay Patra Foundation - average 20,000 number of mid-daymeals are being supplied daily to school children in Durg.
More than 15,000 patients were treated at different plantlocations under various Health Schemes being run by SAILplants/units.
Performance Highlights – SAIL CSR
Outstanding Achievement for Rural and Community Development
Accolades
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.
Prime Minister Dr. Manmohan Singh, in theSCOPE & DPE function held on 15th October, 2009at Vigyan Bhawan, conferred the highest no. of 4awards amongst all PSUs to SAIL. These include:
SCOPE Award for ‘Excellence and Outstanding Contributionto Public Sector Management’ under ‘Individual’category, for the year 2007-08, to SAIL Chairman, Mr. S KRoongta.
The Gold Trophy of SCOPE Award for Excellence andOutstanding Contribution to Public Sector Management inthe ‘Instituitional’ category for the year 2006-07.
Two MoU Excellence Awards in the categories ‘Mining &Metals’ and ‘Listed Companies’ for the year 2007-08.
Maximum number of Shram and Vishwakarma Awardsamongst both private and public sector organizations inthe country. 40-52% employees awarded Shram andVishwakarma awards are from SAIL this year.
7 Gold, 2 Silver and 5 Bronze awards won by SAIL teamsin the international Quality Circle meet held in Cebu(Philippines) in Oct’09 – highest by any organization. In2007 and 2008 also, SAIL Quality Circle teams (includingworkmen) won highest number of awards given to anysingle organization in the country at the international QCmeets held in Beijing & Dhaka respectively.
SAIL has received the 2nd Runner up award for ‘BestPresented Accounts Award 2008’ from the ‘South AsianFederation of Accountants’ (SAFA) in the Category of ‘PublicSector Entities’. This award shall be presented to SAIL at ceremony to beorganised on 5th November 2009 at Dhaka, Bangla Desh. SAIL has received the ‘India Pride Award - Gold Trophy’ forthe Category of ‘Metals, Minerals and Trade’, instituted by DNAand Dainik Bhaskar, to acknowledge and reward thecontribution of PSUs in the overall development of theCountry. The award was presented by Mr. PChidambaram, Union Home Minister
India Pride Award Gold Trophy for the Category of Metals, Minerals andTrade was presented by Mr. P Chidambaram, Union Home Minister
PHD Chamber Good Corporate Citizen 2008 has been bagged by SAIL. The Award was presented by Hon’ble Central Cabinet
Minister Shri Pranab Mukherjee on 17th December 2008
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