Steel Authority of India Ltd

₹ 86.0 -3.43%
03 Feb - close price
About

Steel Authority of India Limited (SAIL) is one of the largest steel-making companies in India and one of the Maharatnas of the countrys Central Public Sector Enterprises. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. SAIL manufactures and sells a broad range of steel products.(Source : Company Web-Site)

Key Points

Modernisation and Expansion plan
The company is one of the largest steelmakers in India, with a total crude steel and saleable steel capacity of 19.63 million tonnes per annum and 18.54 million tonnes per annum, respectively, as on 31 March 2022. [1]
As on FY22, the utilisation was 88% and 92% for crude steel and saleable steel[2]

SAIL expects to incur a capex of INR60,000 million- INR80,000 million in FY23. The company’s future capex would be funded by debt and internal accruals in a 50:50 ratio. [1]

  • Market Cap 35,502 Cr.
  • Current Price 86.0
  • High / Low 112 / 63.6
  • Stock P/E 7.47
  • Book Value 131
  • Dividend Yield 10.2 %
  • ROCE 23.8 %
  • ROE 25.2 %
  • Face Value 10.0

Pros

  • Stock is trading at 0.66 times its book value
  • Stock is providing a good dividend yield of 10.2%.
  • Company has delivered good profit growth of 47.7% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 19.1%
  • Debtor days have improved from 37.4 to 16.8 days.

Cons

  • Contingent liabilities of Rs.42,323 Cr.
  • Company might be capitalizing the interest cost
  • Promoter holding has decreased over last 3 years: -10.0%

* The pros and cons are machine generated. Pros / cons are based on a checklist to highlight important points. Please exercise caution and do your own analysis.

Peer comparison

Sector: Steel Industry: Steel - Large

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Quarterly Results

Consolidated Figures in Rs. Crores / View Standalone

Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022
14,129 16,542 16,172 9,068 16,925 19,836 23,285 20,643 26,828 25,247 30,759 24,029 26,246
12,961 15,537 9,736 9,465 15,023 14,755 17,131 14,075 19,794 21,845 26,421 21,727 25,511
Operating Profit 1,167 1,006 6,436 -398 1,902 5,080 6,154 6,568 7,034 3,402 4,338 2,302 735
OPM % 8% 6% 40% -4% 11% 26% 26% 32% 26% 13% 14% 10% 3%
221 271 -369 327 468 386 205 173 256 -31 525 314 512
Interest 940 849 909 886 720 670 540 503 439 316 440 374 506
Depreciation 901 926 1,055 973 990 981 1,158 1,026 1,056 1,049 1,144 1,194 1,183
Profit before tax -453 -499 4,103 -1,930 660 3,815 4,661 5,212 5,795 2,006 3,279 1,047 -443
Tax % 37% 31% 35% 36% 34% 62% 26% 25% 25% 24% 24% 23% 26%
Net Profit -286 -344 2,648 -1,226 437 1,468 3,470 3,897 4,339 1,529 2,479 804 -329
EPS in Rs -0.69 -0.83 6.41 -2.97 1.06 3.55 8.40 9.44 10.50 3.70 6.00 1.95 -0.80
Raw PDF

Profit & Loss

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 TTM
43,347 46,601 44,891 46,804 46,032 38,793 44,210 57,496 66,973 61,664 69,114 103,477 106,281
35,649 40,432 39,982 42,646 41,217 41,628 44,094 52,788 57,167 51,400 56,337 82,114 95,505
Operating Profit 7,697 6,169 4,910 4,157 4,815 -2,834 115 4,708 9,807 10,264 12,776 21,363 10,776
OPM % 18% 13% 11% 9% 10% -7% 0% 8% 15% 17% 18% 21% 10%
1,862 1,884 923 2,071 892 425 378 654 283 280 1,349 902 1,320
Interest 572 1,085 846 1,047 1,555 2,300 2,528 2,823 3,155 3,487 2,817 1,698 1,636
Depreciation 1,603 1,686 1,527 1,836 1,907 2,404 2,682 3,066 3,385 3,756 4,103 4,275 4,571
Profit before tax 7,384 5,282 3,460 3,346 2,245 -7,114 -4,716 -527 3,549 3,302 7,206 16,292 5,889
Tax % 32% 32% 33% 21% 14% 41% 42% 47% 34% 36% 42% 25%
Net Profit 5,014 3,594 2,329 2,652 1,939 -4,176 -2,756 -281 2,349 2,121 4,148 12,243 4,483
EPS in Rs 8.70 5.64 6.42 4.93 -10.11 -6.67 -0.68 5.69 5.13 10.04 29.64 10.85
Dividend Payout % 20% 23% 35% 31% 41% 0% 0% 0% 9% 0% 28% 30%
Compounded Sales Growth
10 Years: 8%
5 Years: 19%
3 Years: 16%
TTM: 17%
Compounded Profit Growth
10 Years: 13%
5 Years: 48%
3 Years: 68%
TTM: -64%
Stock Price CAGR
10 Years: 0%
5 Years: 0%
3 Years: 21%
1 Year: -18%
Return on Equity
10 Years: 5%
5 Years: 10%
3 Years: 14%
Last Year: 25%

Balance Sheet

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022 Sep 2022
4,130 4,131 4,131 4,131 4,131 4,131 4,131 4,131 4,131 4,131 4,131 4,131 4,131
Reserves 33,470 36,145 37,511 39,151 39,610 36,021 32,912 32,816 35,516 37,380 41,276 50,081 49,905
20,475 17,405 22,539 26,020 32,146 35,141 41,396 45,409 45,170 54,127 37,677 17,284 31,369
20,189 20,989 22,509 24,770 26,963 26,234 29,405 33,339 33,385 31,560 35,007 48,885 44,927
Total Liabilities 78,265 78,669 86,689 94,072 102,849 101,527 107,843 115,694 118,201 127,198 118,090 120,381 130,332
16,609 18,796 18,384 28,175 39,011 45,942 50,300 58,625 61,374 69,034 67,618 73,677 72,521
CWIP 22,422 28,328 36,161 33,958 29,328 24,927 23,275 18,395 16,014 8,753 8,881 4,017 4,155
Investments 61 69 73 91 61 2,280 2,475 2,629 2,975 3,240 3,442 3,757 8,676
39,174 31,477 32,071 31,847 34,450 28,377 31,792 36,044 37,838 46,170 38,149 38,930 44,980
Total Assets 78,265 78,669 86,689 94,072 102,849 101,527 107,843 115,694 118,201 127,198 118,090 120,381 130,332

Cash Flows

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
2,438 1,668 2,823 6,313 2,579 4,043 2,160 6,164 7,215 -618 23,430 30,987
-9,131 -7,670 -8,317 -7,488 -6,292 -4,805 -5,467 -6,480 -3,694 -4,261 -3,295 -3,976
1,721 -5,084 3,009 1,017 3,775 743 3,302 269 -3,549 5,003 -19,808 -27,398
Net Cash Flow -4,972 -11,087 -2,485 -158 63 -20 -5 -47 -28 125 328 -387

Ratios

Consolidated Figures in Rs. Crores / View Standalone

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Debtor Days 34 38 37 43 26 30 24 25 25 52 43 17
Inventory Days 200 206 299 272 370 308 274 199 243 370 207 170
Days Payable 56 49 63 56 77 82 90 87 89 97 107 145
Cash Conversion Cycle 178 195 273 259 319 255 209 137 179 325 144 42
Working Capital Days 43 58 76 50 48 10 -8 -10 7 75 16 -19
ROCE % 14% 11% 7% 5% 5% -6% -2% 3% 9% 8% 11% 24%

Shareholding Pattern

Numbers in percentages

Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022 Sep 2022 Dec 2022
75.00 75.00 75.00 75.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00
2.91 2.81 3.23 4.16 4.32 5.01 5.38 4.41 4.58 4.22 4.31 4.34
14.58 14.12 13.65 12.91 16.63 15.56 12.46 10.51 10.24 8.79 9.40 10.73
0.06 0.06 0.06 0.07 0.07 0.08 0.08 0.08 0.00 0.09 0.00 0.00
7.45 8.02 8.06 7.86 13.99 14.36 17.09 20.01 20.18 21.91 21.29 19.94

* The classifications might have changed from Sep'2022 onwards. The new XBRL format added more details from Sep'22 onwards.

Classifications such as banks and foreign portfolio investors were not available earlier. The sudden changes in FII or DII can be because of these changes.

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