SAIL
Background
Steel Authority of India Ltd (SAIL) is one of the leading producers of
steel in India
The government currently holds an 86 per cent equity stake and voting
control in the company. However, SAIL has significant operational and financial
autonomy due to its ‘Navratna' status.
|
Particulars
|
No of Shares
|
Percentage of total shares
|
|
Promoters
|
3,544,690,285
|
85.8
|
|
Indian
|
3,544,690,285
|
85.8
|
|
Non-promoters
|
584,934,610
|
14.2
|
|
Institutions
|
470,716,451
|
11.4
|
|
Non-institutions
|
114,300,009
|
2.8
|
|
Custodians
|
693,800
|
0.0
|
|
Total Shares
|
4,130,318,695
|
100.0
|
|
Source: Prowess
|
|
|
Product mix
SAIL has a diversified range of steel products, which include hot and
cold rolled sheets and coils, galvanised sheets, electrical sheets,
structurals, railway products, plates, bars and rods.
|
Products (‘000 tonnes)
|
2007-08
|
2006-07
|
|
Hot metal
|
14,981
|
14,368
|
|
Crude steel
|
13,649
|
13,194
|
|
Saleable steel
|
|
|
|
Semi finished
|
2,243
|
2,278
|
|
Finished
|
10,228
|
9,849
|
|
Total: Integrated steel plants
|
12,531
|
12,127
|
|
Alloy & special plants
|
513
|
454
|
|
Total saleable steel
|
13,044
|
12,581
|
|
Source: Annual report
|
||
Technology
SAIL produces steel through the blast furnace / basic oxygen furnace
(BOF) route.
Plant locations
The company has its main plants at Bokaro (Bihar), Rourkela (Orissa),
Bhilai (Madhya Pradesh) and Durgapur (West Bengal ). In 2007-08, the combined saleable steel
production of these plants was 13 MT.
|
Location
|
Capacity
|
|
Key products
manufactured
|
|
|
|
Products
|
('000 tonnes)
|
|
|
|
Bhilai (Durg, Chattisgarh)
|
Ingot / liquid steel
|
4,286
|
|
Long products
|
|
|
Pig iron
|
348
|
|
|
|
|
Saleable steel
|
3,627
|
|
|
|
Bokaro (Giridih, Jharkhand)
|
Ingot / liquid steel
|
4,416
|
|
Flat products
|
|
|
Pig iron
|
348
|
|
|
|
|
Saleable steel
|
3,737
|
|
|
|
|
Ingot / liquid steel
|
1,948
|
|
Long products, alloy steel
|
|
|
Liquid steel (alloy steel)
|
352
|
|
|
|
|
Pig iron
|
348
|
|
|
|
|
Pig iron (alloy steel)
|
58
|
|
|
|
|
Saleable steel
|
1,649
|
|
|
|
|
Saleable steel (alloy steel)
|
457
|
|
|
|
Burnpur (
|
n.a.
|
n.a.
|
|
Steel products, alloy steel
|
|
|
|
|
|
|
|
Bhadrawati (Karnataka)
|
n.a.
|
n.a
|
|
Steel products, alloy steel
|
|
|
|
|
|
|
|
|
Ingot / liquid steel
|
1,948
|
|
Flat products
|
|
|
Pig iron
|
348
|
|
|
|
|
Saleable steel
|
1,649
|
|
|
|
|
Ingot / liquid steel
|
390
|
|
Steel products, alloy steel
|
|
|
Pig iron
|
348
|
|
|
|
|
Saleable steel
|
330
|
|
|
|
n.a.: Not available
|
|
|
|
|
|
Source: CRISIL Research,
Prowess
|
|
|
|
|
Financials
Table 4: SAIL - Key financial indicators
|
|
Units
|
31-Mar-06
|
31-Mar-07
|
31-Mar-08
|
|
Operating income
|
Rs million
|
284,700
|
347,156
|
398,581
|
|
Operating margins
|
Per cent
|
24.3
|
29.2
|
29.3
|
|
Net profits
|
Rs million
|
40,714
|
62,518
|
75,969
|
|
Net margins
|
Per cent
|
14.3
|
18.0
|
19.1
|
|
RoCE (return on average capital employed)
|
Per cent
|
37.0
|
49.2
|
46.9
|
|
Gearing
|
Times
|
0.3
|
0.2
|
0.1
|
|
Net cash accruals to debt
|
Times
|
15.3
|
36.5
|
88.4
|
|
Interest coverage
|
Times
|
1.2
|
1.6
|
2.3
|
|
Current ratio
|
Times
|
1.3
|
1.6
|
1.8
|
|
Source: CRISIL Research
|
|
|
|
|
Future
plans
A Rs 250 billion, modernisation-cum-expansion plan is underway to expand
the company's production capacity from 13 MT to more than 25 MT over the next 2
years. Apart from the brownfield expansion, SAIL has also slated a greenfield
