STEEL AUTHORITY

OF INDIA LIMITED

Performance
Highlights
Q1 FY17
PERFORMANCE HIGHLIGHTS : Q1 FY17
 Net Sales : Rs 9082 Crore
FINANCIAL  EBITDA : Rs 323 Crore
PERFORMANCE  PBT : Rs (-)925 Crore
 PAT : Rs (-)535 Crore

 Hot Metal Production : 3.9 MT

 Crude Steel Production : 3.6 MT
PRODUCTION
 Saleable Steel Production : 3.4 MT
& SALES
PERFORMANCE  Semis component in production : 28% of saleable steel
 Value Added Production : 1.4 MT
 Production through concast route : 2.8 MT
 Saleable Steel Sales : 2.8 MT
FINANCIAL PERFORMANCE
5621 5909 5586
3241 3225
2359

Profit 2170 2616 2093 EBITDA

-3052 PBT
Trend PAT
-4137
-7198

FY13 FY14 FY15 FY16

296 323

Quarterly -248 EBITDA

-664 -535
-925 PBT
Profits -950
-1231
PAT

-2341
Q1 FY16 Q4 FY16 Q1 FY17
FINANCIAL PERFORMANCE
Net Worth Borrowings and Interest Cost
(Rs. Crore) (Rs. Crore)
33217
41025 42666 43505 29898
39281 25281
21597
2047
1454 Annual
968 Borrowings
748
Interest Cost
FY13 FY14 FY15 FY16 FY13 FY14 FY15 FY16

43185 36249 *
34873
38707
594
508 * After considering
IndAS impact of
Rs.1735 Crore
30.06.2015 30.06.2016 30.06.2015 30.06.2016

The ongoing CAPEX is being financed through a Debt-Equity Ratio of 1:1

Debt Equity Ratio
31/03/2013 31/03/2014 31/03/2015 31/03/2016 30/06/2016
0.53 0.59 0.69 0.89 0.94
FINANCIAL PERFORMANCE

Q1 FY 17 Q1 FY 16
Rs. Crore
As Per Accounts Reported Impact of IndAS As Per Accounts

Gross Sales 10180 10552 -10 10543

Net Sales 9082 9384 -10 9374
EBIDTA 323 93 212 296
Depreciation 600 426 31 452
Finance Cost 594 443 68 508
PBT Before Exceptional Items -871 -776 113 -664
Exceptional Items (VRS) 54 0 0 0
PBT After Exceptional Items -925 -776 113 -664
Tax -390 -455 39 -416
Profit After Tax -535 -321 74 -248
PRODUCTION PERFORMANCE
In Million Tonne
12.9 12.8
12.4 12.4
SALEABLE 3.1 3.4
STEEL
PRODUCTION
(incl. SSPs)
Q1 FY16 Q1 FY17
FY13 FY14 FY15 FY16

Annual Quarterly
12.4 12.4
11.9 11.9
SALEABLE 3.0 3.3
STEEL
PRODUCION
(5 ISPs)
Q1 FY16 Q1 FY17

FY13 FY14 FY15 FY16

PRODUCTION & SALES PERFORMANCE : Q1 FY17

16.8% 22%

1.5%
CRUDE STEEL Ingot Route
BOF
PRODUCTION CC Route
EAF
BY PROCESS
THF
82%
78%

SALEABLE STEEL SALES

(5 ISPs)
SALEABLE STEEL 41%
PRODUCTION 16%
BY PROCESS Semis
(5 ISPs) Longs
59% Flat + PET
29%
Commodity Value Added 55%
PRODUCTION PERFORMANCE : Q1 FY17

28%

PRODUCT MIX : SAIL

5 ISPs (5 ISPs)
48%
24%

Flats
28% 48% 24%
BSP Longs
24% 76% Semis
DSP
79% 21%
RSP
94% 6%
BSL
65% 35%
ISP
PRODUCTION PERFORMANCE

Coke Rate 477 kg/THM

MAJOR Fuel Rate 554 kg/TCS
TECHNO-ECONOMIC
Sp. Energy Consumption 6.60 GCal/TCS
PARAMETERS Q1 FY17
BF Productivity 1.66 T/m3/day

302 315 310

278
258

LABOUR
PRODUCTIVITY

FY13 FY14 FY15 FY16 Q1 FY17

Total manpower as on 01.07.2016: 85,971

 SALES PERFORMANCE
12.1 11.7 12.1
11.1
2.7 2.8
SALEABLE
STEEL
SALES
(Million Tonne) Q1 FY16 Q1 FY17

FY13 FY14 FY15 FY16

Annual Quarterly

Number of Dealers
SALES THROUGH
2612 DEALER’s NETWORK
2156

Sales through dealers

during Q1 FY17
0.138 Million Tonne
01.07.2015 01.07.2016
 SAIL STOCK PRICE MOVEMENT
SAIL's Share Price (Rs.) Sensex Points

28926
27828 27780 28052
26657 26668 Closing Share Price and
26283 26118 28452
27011 28115 24871 25342
Sensex as on the last day
26146 27000
26155
25607
of the month
70
66
61 23002 * As on September 7
57
51 53 52
50 49 47 48
46 43 43 45 47
43
35

Dividend
Interim Final Total Dividend
Tax
(%) (%) (%) (Rs. crore)
(Rs. crore)

FY16 - - - - -
DIVIDEND FY15 17.5 2.5 20 826 165
PAYOUT
FY14 20.2 - 20.2 834 142

FY13 16 4 20 826 134

FY12 12 8 20 826 134

POWER CONSUMPTION – Q1 FY17

9%

31%

Drawal from Grid

JV CPP
Own CPP
60%
SAIL’s MODERNISATION & EXPANSION PLAN
Actual Production Capacity After
Million Tonne
2015-16 On-going Expansion
Crude Steel 14.28 21.4
Saleable Steel 12.38 20.2

Technological Shift
Before After
Technology
Expansion Expansion
BOF Steel Making 79% 100%
CC Route 71% 94%
Pelletisation Plant No Yes
Coke Dry Quenching Partial Yes
Top Pressure Recovery Turbine No Yes
Auxiliary Fuel Injection in BF Partial Coverage Full Coverage
Desulphurization of Hot Metal Partly 100 %
Beam Blank Casting No Yes
Coupled Pickling & Tandem Mill No Yes
Beneficiation Plant Partial Full
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 Blast
OUTCOME Furnaces and one Blast Furnace of 4160 m3.
 Increased Market Share.
 World class technology and products.
 Improved Product Mix / proportion of value added products to increase.
 Enhanced Pollution Control measures, with Environmental Conservation.

 Auto grade CR Products, Galvanized Coils /Sheets.

 Plates / Pipes to meet up to API 100 Grade specification.
 Universal Beams/Heavy Beams to support increasing Infrastructural
PRODUCTS requirements.
BEING  Rails for Metro – Railways and Dedicated Freight Corridors.
ADDED:  Increased production of Rails and Wheels to meet the increasing requirements of
Indian Railways.
 Quantum jump in Rounds and Structural production.
 Wider Plates in the size of 4300 mm.
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 Plan of Rs. 10264 crore has been
made for augmentation of Raw material facilities.
1 2 3 4 5
11021
9731 9890 (Rs. Crore)

TOTAL CAPEX 6840

(INCL. ON MODERNISATION & 6034
EXPANSION) Capex during
Q1 FY17 was
Rs.1,142 crore
Capex Plan for FY17 is
Rs.4000 Crore
FY12 FY13 FY14 FY15 FY16
CAPACITY AFTER EXPANSION

Saleable Steel
Hot Metal (MTPA) Crude Steel (MTPA)
(MTPA)
Plant
After After After
2015-16 2015-16 2015-16
Expansion Expansion Expansion

BSP 5.3 7.5 5.1 7.0 4.2 6.6

DSP 2.2 2.5 2.0 2.2 1.9 2.1

RSP 3.0 4.5 2.7 4.2 2.4 4.0

BSL 3.7 5.8 3.4 4.6 2.6 4.2

ISP 1.4 2.9 0.9 2.5 0.9 2.4

VISL 0.1 0.3 0.0 0.2 0.0 0.2

ASP - - 0.1 0.5 0.1 0.4

SSP - - 0.1 0.2 0.3 0.3

TOTAL 15.7 23.5 14.3 21.4 12.4 20.2

 PRODUCT MIX POST EXPANSION – SALEABLE STEEL
CR Galvanized PET Products
Coils/Sheets Products
4%
1% FY 16
2%
Semis
HR 26%
Plates/Coils/
Sheets/skelp Structurals
26% 3%

Bars & Rods Galvanized PET

PM Plates 15% CR
Products Products
16% Coils/Sheets 1%
Rly Products 3%
11%
7% Semis
12% Structurals
HR 14%
Plates/Coils/
Sheets/skelp
16%

Bars & Rods

19%
Post
Ongoing Expansion
PM Plates
16% Rly Products
8%
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 under stablisation

Production (MTPA) :

Item 2015-16 (Actual) After Expansion

Crude Steel 0.12 0.18
Saleable Steel 0.34 0.34
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 production, 2x204 m²)
• Blast Furnace 4160 m3 volume (2.7Mtpa)
• 3 nos. of 150 T BOF Converters
• 2x6 Strand Billet Casters (1.67 Mtpa)
• 1x4 Strand Bloom-cum-Beam Blank Caster (0.83 Mtpa)
• Wire Rod Mill (0.5 Mtpa)
• Bar Mill (0.75 Mtpa)
• Universal Section Mill (0.6 Mtpa)
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 2015 -16 (Actual) After Expansion
Crude Steel 0.871 2.50

Saleable Steel 0.855 2.39

The expanded capacity of IISCO Steel Plant has

been dedicated to the Nation by the
Hon’ble Prime Minister on 10.05.2015.
 Current Progress of Expansion at IISCO Steel Plant
BURNPUR

Coke Oven
Battery Sinter Plant
Blast Furnace

BOF Converters

Billet Casters

Wire Rod Mill

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
• Up-gradation of HSM with augmentation of Roughing facility (4.5 MTPA).

Production (MTPA) :
Item 2015 -16 (Actual) After Expansion
Crude Steel 3.39 4.61
Saleable Steel 2.60 4.18
 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
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)
• Rail Welding Line

Facilities Likely to be Completed During FY 16-17:

• Blast Furnace 4060 m3.
• New Steel Melting Shop (SMS-3; 4.13 MTPA) with New Billet Casters (2X6)/Billet-cum-
Bloom Caster (1X6), Beam Blank Caster (1X3)
• Universal Rail Mill (1.2 MTPA)
• Bar and Rod Mill (0.9 MTPA)

Production (MTPA) :
Item 2015 -16 (Actual) After Expansion
Crude Steel 5.06 7.0

Saleable Steel 4.16 6.56

 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

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
• New 3rd BOF (150 T) Convertor
• New 4.3 meter Wide Plate Mill

Production (MTPA) :
Item 2015 -16 (Actual) After Expansion
Crude Steel 2.73 4.20
Saleable Steel 2.42 3.99

The expanded capacity of Rourkela Steel Plant has

been dedicated to the Nation by the
Hon’ble Prime Minister on 01.04.2015.
 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
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 (MTPA) :

Item 2015 -16 (Actual) After Expansion

Crude Steel 1.98 2.20

Saleable Steel 1.88 2.12

 Current Progress of Expansion at Durgapur Steel Plant

Coke Oven Battery-2 Ladle Furnace-3

Bloom cum Round Caster

Medium Structural Mill

 RAW MATERIALS
Iron Ore
Hot Metal
Year Consumption Linkages of Iron Ore
(mtpa)
(mtpa)

2015-16 15.72 24.97 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

Three new Pellet Plants - 4 mtpa capacity at

Post
23.46 39 Gua, 2 mtpa capacity at RSP & 1 mtpa
Expansion
capacity at Dalli) have been planned for
better utilisation of Iron Ore Fines

In addition to the above, iron ore shall be

mined from new mines at Rowghat, Chiria
and Taldih
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 at Meghahatuburu is being
Meghahatuburu 5.00 6.50 ramped up to meet the requirement of the
Bolani 5.50 10.00 ongoing expansion plan.

Gua 4.00 10.00 At Bolani, processing plant has upgraded to 7.5

mtpa and is under stabilization.
Rajhara, Dalli 8.70 7.00*
*Depleted resources and quality constraints
New Pellet
New 7.0 New Pellet Plant shall use the existing reserve
Plants of fines incl. dumps & slimes at captive mines

Barsua, Kalta, Environment clearance & FC received from

3.31 6.5 MOEF
Taldih
All statutory clearances have been received.
Rowghat New 12.0
MDO is being engaged.
Stage-I Forest Clearance& EC has been
Chiria 0.75 5.8
obtained. Stage-II FC awaited from MoEF.

 The entire requirement of the increased capacity shall be met through captive mines
 The timeline for mines expansion is expected to be in line with Steel Plants expansion
RAW MATERIALS – Coal
Hot Metal Coking Coal
Year Linkages of Coking Coal
(mtpa) Requirement (mtpa)
• Import Component – 86%
• Over 90% of imported coal is sourced from
Australia.
• Indigenous: 14%
2015-16 15.72 15.6
• Domestic coal is largely sourced from Coal India
Ltd.
• SAIL has existing captive coking coal production
of nearly 0.5 mtpa
• Long term / Quarterly contracts cover 95% of
Import requirements
• MDO has been engaged for development of
Tasra captive coal to produce 4 mtpa of ROM (2
mtpa washed coal)
Post • Sitanala coal block allotted for a mine capacity of
23.46 21.0
Expansion 0.30 mtpa of ROM (0.20 mtpa of washed coal)
• Parbatpur coking coal mine allocation letter
issued in March 2016
• New linkages / acquisitions are being explored
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 Ltd for a Flat Product service centre at
Bokaro
DOWNSTREAM  SAIL SCL Kerala Limited – A JV with Govt. of Kerla for
STEEL PROCESSING producing TMT Bars at Kozhikode
UNITS  Prime Gold – SAIL JVC Limited – A JV with M/s Prime
Gold for producing TMT Bars at Gwalior
 VSL SAIL JVC Limited – A JV with M/s Velagapudi Steel
Ltd for producing TMT Bars at Ujjain

 JV with NTPC for operating and managing CPPs of

ENERGY Bhilai, Durgapur and Rourkela
 JV with DVC for operating & managing CPP of Bokaro
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

leading PSUs incorporated (SAIL, RINL, CIL, NTPC &
NMDC) for acquisition / operation of coal assets in
RAW overseas territories.

MATERIALS  M/s S&T Mining Company Pvt. Ltd. formed with Tata
Steel for developing coking coal mines in India.
 M/s SAIL & MOIL Ferro Alloys (Pvt.) Ltd. formed with
MOIL for production of Ferro-alloys at Bhilai.

 Bhilai Jaypee Cement Ltd. -Slag based cement plant of

CEMENT 2.2 million tonne per annum capacity with grinding
unit at Bhilai & clinkering unit at Satna.
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
activities in steel and related areas
 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
• DSP Durgapur Steel Plant • Mtpa Million Tonne Per Annum
• RSP Rourkela Steel Plant • EBIDTA Earnings Before Interest
• BSL Bokaro Steel Limited Depreciation ,Taxes &
Ammortization.
• SSP Salem Steel Plant
• PAT Profit After Tax
• VISL Visvesvaraya Iron & Steel
Plant • PBT Profit Before Tax
• ASP Alloy Steels Plant • RINL Rashtriya Ispat Nigam
Limited
• CPLY Corresponding Period
Last Year • CS Crude Steel
• G.Cal/tcs Giga Calories per tonne of • CDI Coal Dust Injection
Crude Steel • CC Continuous Casting
• ISP Integrated Steel Plant • BOO Build-Own-Operate
• HDGL Hot Dip Galvanizing Line • GoI Government of India
• CR Cold Rolled • MOEF Ministry of Environment
• HR Hot Rolled & Forests
 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, 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.