STEEL AUTHORITY OF INDIA LIMITED RESULTS PRESENTATION FOR Q4 & FY 2019-20 STEEL AUTHORITY OF INDIA LIMITED Economic & Steel Scenarios WORLD ECONOMIC SCENARIO Growth Rates 5.9 5.4 ( in %) 4.8 4.8 4.5 3.8 3.6 3.7 2.9 2.4 2.2 1.9 2017 (E) 2018 (E) 2019 (E) -3 2020 (P) -4.9 2021 (P) -8 World Advanced Economies Emerging & Developing Economies Global growth in 2020 & 2021 is projected at -4.9 and 5.4 percent SOURCE: IMF INDIAN ECONOMIC SCENARIO GDP Growth % at Constant Prices (2011-12 Prices) 8.0 8.2 7.4 7.0 6.4 6.1 4.2 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 Source Growth Projection WORLD BANK -3.2% (FY21) and 3.1% (FY22) IMF -4.5% (CY20) and 6.0% (CY21) RBI -6% - 1% (FY21) SOURCE: CSO, GoI & Economic Survey WORLD STEEL SCENARIO Crude Steel Production (mtpa) 1809 1870 1730 (Crude Steel Production) 1627 In 2019 : Asia : 1342 mtpa 996 World 920 889 808 819 871 859 874 • China : 996 mtpa China • India : 111 mtpa Rest of World • Japan: 99 mtpa USA : 88 mtpa 2016 2017 2018 2019 World Steel Association (WSA) forecast : Finished Steel Consumption (mtpa) • Global steel demand will decrease by 6.4% in 2020 and increase by 3.8% in 1708 1767 1717 1597 1654 2021. 1546 1551 1505 1521 • China’s growth is set to go down to 1% in 2020 and constant in 2021. • In the Emerging and Developing Economies excluding China, steel demand is forecast to fall by 11.6% in 2020 and rise by 9.2% in 2021. • Demand in India expected to fall by 2013 2014 2015 2016 2017 2018 2019 2020 2021 18% in 2020 and rise by 15% in 2021. (F) (F) INDIAN STEEL SCENARIO • India’s Crude steel Crude Steel Production (mtpa) production (2019) : 109.3 111.2 95.5 101.5 1.7% 111.2mtpa (growth 87.3 89.0 of 1.8 % over 2018) • India overtook USA as the second largest consumer of steel in 2019. 2014 2015 2016 2017 2018 2019 • As per WSA, Short Range Outlook, Finished Steel Consumption (mtpa) demand in India is set to fall by 18% in 2020 97 102 89 96 and grow by 15% in 76 80 84 83 2021. Source: WSA 2014 2015 2016 2017 2018 2019 2020(F)2021(F) INDIAN STEEL PERFORMANCE % +/- Over INDICATORS UNIT 19-20 18-19 CPLY Growth in Index of Industrial Production ^ % -0.8 3.8 -4.60 Production - Finished Steel * MT 102.06 101.29 0.8 Imports - Finished Steel * MT 6.77 7.84 -13.6 Exports - Finished Steel * MT 8.36 6.36 31.3 Consumption - Finished Steel * MT 100.47 102.76 -2.2 Real Consumption of Finished Steel * MT 100.07 98.71 1.4 ^ As per CSO *Source JPC Report 7 INTERNATIONAL PRICE (FOB) TREND USD/Tonne HRC- China CRC- China 568 545 556 550 539 522 527 519 525 537 517 504 489 501 495 531 529 445 451 513 515 507 486 493 482 493 459 470 462 435 444 440 401 413 567 HRC- CIS CRC- CIS 551 554 542 543 539 540 527 535 538 518 492 509 437 444 430 499 512 418 494 481 475 482 475 478 478 452 453 460 429 381 384 372 360 STEEL AUTHORITY OF INDIA LIMITED Performance Highlights PERFORMANCE HIGHLIGHTS : FY’20 Sales : Rs 61025 Crore FINANCIAL EBITDA : Rs 11199 Crore PERFORMANCE PBT : Rs 3171 Crore PAT : Rs 2022 Crore Hot Metal Production : 17.438 MT Crude Steel Production : 16.155 MT PRODUCTION & SALES Saleable Steel Production : 15.083 MT PERFORMANCE Semis component in production : 20.31 % of saleable steel Value Added Production : 6.394 MT Production through concast route : 14.607 MT Saleable Steel Sales : 14.231 MT PERFORMANCE HIGHLIGHTS : Q4 FY’20 Net Sales : Rs 16024 Crore FINANCIAL EBITDA : Rs 6924 Crore PERFORMANCE PBT : Rs 4181 Crore PAT : Rs 2725 Crore Hot Metal Production : 4.599 MT Crude Steel Production : 4.313 MT PRODUCTION & SALES Saleable Steel Production : 3.975 MT PERFORMANCE Semis component in production : 19.06% of saleable steel Value Added Production : 1.711 MT Production through concast route : 3.981 MT Saleable Steel Sales : 3.744 MT SAIL STOCK PRICE MOVEMENT SAIL's Share Price (Rs.) Sensex Points 38673 39714 40129 41254 38645 36257 38297 3622734442 37333 34916 39395 40794 40723 33718 39032 37481 38667 36194 36068 35867 36594 32424 29468 80 64 55 56 47 54 56 50 51 68 48 43 47 43 33 37 39 36 31 32 30 37 30 23 Closing Share Price and Sensex as Dividend Interim Final Total Dividend Tax on the last day of the month (%) (%) (%) (Rs. crore) (Rs. crore) * As on Jul 10, 2020 FY 19 - 5 5 206 FY 18 - - - - - DIVIDEND FY 17 - - - - - PAYOUT FY16 - - - - - FY15 17.5 2.5 20 826 165 FY14 20.2 - 20.2 834 142 FY13 16 4 20 826 134 STEEL AUTHORITY OF INDIA LIMITED Operational Performance PRODUCTION PERFORMANCE All figures In Million Tonne 4.1 15.1 15.1 4.0 13.9 14.1 SALEABLE 12.8 12.4 STEEL PRODUCTION (incl. SSPs) Q4 FY19 Q4 FY20 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Annual Quarterly 14.7 14.7 13.4 13.8 12.4 4.0 3.9 SALEABLE 11.9 STEEL PRODUCION (5 ISPs) Q4 FY19 Q4 FY20 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 PRODUCTION PERFORMANCE : FY 20 1.3%6.1% 9.6% CRUDE STEEL BOF Ingot PRODUCTION EAF Route BY PROCESS THF CC Route 90.4% 92.6% SALEABLE STEEL 42.4% Commodity PRODUCTION Value Added BY PROCESS 57.6% PRODUCTION PERFORMANCE : FY 20 SAIL 20.3% PRODUCT MIX : 49.6% 5 ISPs 30.1% BSP 21.9% 62.8% 15.3% DSP 34.8% 65.2% Flats RSP 95.2% 4.8% Longs Semis BSL 100.0% ISP 58.1% 41.9% SALES PERFORMANCE All figures In Million Tonne 14.1 14.1 14.2 13.1 4.1 3.7 11.7 12.1 TOTAL SALES (incl. SSPs) Q4 FY 19 Q4 FY 20 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Annual Quarterly 4.0 13.8 13.8 13.9 3.7 12.7 SALES 11.2 11.7 OF 5 ISPs Q4 FY 19 Q4 FY 20 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 STEEL AUTHORITY OF INDIA LIMITED Efficiency & Sustainance Performance RECENTLY DEVELOPED PRODUCTS NARRROW PARALLEL FLANGE BEAM 750: USAGE IN CONSTRUCTION INDUSTRY LINKE HOFMANN BUSCH (LHB) WHEELS: USAGE FOR RAILWAYS PRODUCT CUSTOMISATION FOR END USERS HYVA TIPLERS Main Frame Track Frame HSMP AND PMP GRADE: IS 2062E450, E600 Boom Front Frame Arm PRODUCT CUSTOMISATION FOR END USERS ASHOK LEYLAND U TRUCK U 2518T CAPTAIN 2518 HRC PMP GRADE: IS5986, ISH500, LAHFQ450 PRODUCT CUSTOMISATION FOR END USERS Rear Axle Beam developed using HRC SAILFORMING 410 / 450 grades Live Axle Beam Dummy Axle Beam TECHNO-ECONOMIC PARAMETERS Coke Rate: kg/thm CDI Rate: kg/thm 76 76 70 60 513 504 49 489 40 473 34 456 453 457 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Reduction of 11% over FY14 Increase of 123% over FY14 3 Specific Energy Consumption: GCal/tcs BF Productivity: T/m3/Day 1.80 6.59 6.52 6.51 6.60 6.49 6.50 6.47 1.70 1.67 1.65 1.58 1.58 1.56 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 14 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Reduction of 2% over FY14 Improvement of 14% over FY14 SUSTAINANCE PARAMETERS PM Emission Load: kg/tcs Specific CO2 Emission: m3/tcs 2.65 0.83 0.81 0.77 0.74 2.61 0.70 0.69 2.60 2.57 2.56 2.54 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 Reduction of 17% over FY15 Reduction of 4% over FY15 3 Solid Waste Utilisation (%) Specific Water Consumption: m3/tcs 89 85 84 83 83 85 3.83 3.75 3.66 3.62 3.50 3.44 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 15 FY 16 FY17 FY18 FY 19 FY 20 Increase of 4% over FY15 Reduction of 4% over FY15 MANPOWER PERFORMANCE LABOUR PRODUCTIVITY TREND (tcs/man/year) 389 400 344 320 302 315 Improvement 278 of 44% over FY14 FY 14 FY 15 FY 16 FY17 FY18 FY19 FY20 3 LABOUR PRODUCTIVITY Q4 FY 20 VIS-À-VIS CPLY (tcs/man/year) MANPOWER 426 438 396 Total manpower as on 01.04.2020: 69379 Reduction in 2019-20: 2960 Q4 FY 19 Q4 FY 20 Q3 FY 20 POWER CONSUMPTION – FY 20 11.25% Own CPP Drawl from Grid 52.76% Purchase through 32.94% Power Exchange JV CPP 3.04% STEEL AUTHORITY OF INDIA LIMITED Financial Performance FINANCIAL PERFORMANCE Rs. Crore FY20 FY19 Q3 FY 20 Q4 FY 20 Q4 FY 19 (INDAS Compliant figures) Sales 61025 66267 16405 16024 18323 EBITDA 11184 10267 1184 6917 2461 Depreciation 3755 3385 926 1055 890 Finance Cost 3487 3155 849 909 803 PBT Before Exceptional Items 3942 3727 -591 4953 767 Exceptional/Abnormal Items (VRS/Suspended Operations) 772 389 - 772 55 PBT After Exceptional Items 3171 3338 -591 4181 712 Tax 1149 1159 -162 1456 244 Profit After Tax 2022 2179 -430 2725 468 FINANCIAL PERFORMANCE All figures in Rs crore Annual Profit Trend 11184 10267 EBITDA Cash Profit 6548 5590 5564 PBT 5102 3866 PAT 3338 3171 2345 2583 2079 2179 2022 672 -153 -759- 482 -1619 -2203 -2833 -4021 -4851 -7007 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FINANCIAL PERFORMANCE All figures in Rs crore EBITDA Movement FY 20 vs FY 19 2557 886 5407 5072 41 11184 10267 312 772 EBITDA Volume Cost Raw Price COVID 19 Valuation Others EBITDA FY19 /Mix Material Impact Impact FY20 Usage FINANCIAL PERFORMANCE Quarterly Performance All figures in Rs crore Q4 FY 19 vs Q4 FY 20 vs Q3 FY 20 6932 EBITDA Cash Profit 4552 PBT 4181 PAT 2725 2461 1359 1184 712 468 497 -430 -591 Q4 FY 19 Q4 FY 20 Q3 FY 20 FINANCIAL PERFORMANCE 4592 772 35 6917 EBITDA 701 324 415 Movement 2461 191 Q4 FY 20 vs Q4 FY 19 EBITDA Volume Cost Raw Price Valuation COVID19 Others EBITDA Q4 FY19 /Mix Material Impact Changes Q4 FY20 Usage All figures in Rs crore 4113 772 37 6917 EBITDA Movement 2362 164 207 Q4 FY 20 vs 1184 378 Q3 FY 20 EBITDA Q3 Volume/Mix Raw Cost Price Impact Valuation COVID19 Others EBITDA Q4 FY 20 Material Impact FY 20 Usage FINANCIAL PERFORMANCE Annual Net Worth Annual Borrowings & Interest cost 54127 5000 50000 45409 45170 39196 39777 38152 41396 40000 35141 4000 36009 35714 Annual 30000 3487 3000Borrowings 20000 3155 2823 2528 Interest 10000 2000 2300 Cost 0 1000 FY 16 FY 17 FY 18 FY 19 FY 20 FY 16 FY 17 FY 18 FY 19 FY 20 Quarterly Net Worth Quarterly Borrowings & Interest cost 51589 51871 54127 48456 2000 50000 45170 38152 38191 37605 37182 39777 40000 1500 Quarterly 30000 1000Borrowings 20000 940 909 803 788 849 10000 500Interest Cost Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY 0 0 19 20 20 20 20 Q4 FY Q1 FY Q2 FY Q3 FY Q4 FY All figures in Rs.