Steel Authority of India Ltd

₹ 81.6 3.49%
12 Aug - 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
SAIL (Crude Steel) has a capacity of 21.4 MT and current utilization of 82% as of Dec 2020. [1]
SAIL is in the final stage of completion of its ongoing Rs 70,000-crore modernization and expansion programme. Under its Vision 2030 programme, the company plans to further add 29.6 mtpa in two phases by 2030 [2]

  • Market Cap 33,705 Cr.
  • Current Price 81.6
  • High / Low 136 / 63.6
  • Stock P/E 3.58
  • Book Value 131
  • Dividend Yield 10.7 %
  • ROCE 24.3 %
  • ROE 25.1 %
  • Face Value 10.0

Pros

  • Company has reduced debt.
  • Stock is trading at 0.62 times its book value
  • Stock is providing a good dividend yield of 10.7%.
  • Company is expected to give good quarter
  • Company has delivered good profit growth of 47.6% CAGR over last 5 years
  • Company has been maintaining a healthy dividend payout of 19.1%

Cons

  • Contingent liabilities of Rs.40,266 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

Jun 2019 Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022
14,821 14,129 16,542 16,172 9,068 16,925 19,836 23,285 20,643 26,828 25,247 30,759 24,029
13,232 12,961 15,537 9,736 9,465 15,023 14,755 17,131 14,075 19,794 21,845 26,421 21,727
Operating Profit 1,589 1,167 1,006 6,436 -398 1,902 5,080 6,154 6,568 7,034 3,402 4,338 2,302
OPM % 11% 8% 6% 40% -4% 11% 26% 26% 32% 26% 13% 14% 10%
223 221 271 -369 327 468 386 205 173 256 -31 525 314
Interest 788 940 849 909 886 720 670 540 503 439 316 440 374
Depreciation 873 901 926 1,055 973 990 981 1,158 1,026 1,056 1,049 1,144 1,194
Profit before tax 150 -453 -499 4,103 -1,930 660 3,815 4,661 5,212 5,795 2,006 3,279 1,047
Tax % 32% 37% 31% 35% 36% 34% 62% 26% 25% 25% 24% 24% 23%
Net Profit 103 -286 -344 2,648 -1,226 437 1,468 3,470 3,897 4,339 1,529 2,479 804
EPS in Rs 0.25 -0.69 -0.83 6.41 -2.97 1.06 3.55 8.40 9.44 10.50 3.70 6.00 1.95

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 69,114 103,477 106,862
35,649 40,432 39,982 42,646 41,217 41,628 44,094 52,788 57,167 51,400 56,337 82,135 89,788
Operating Profit 7,697 6,169 4,910 4,157 4,815 -2,834 115 4,708 9,807 10,264 12,776 21,342 17,075
OPM % 18% 13% 11% 9% 10% -7% 0% 8% 15% 17% 18% 21% 16%
1,862 1,884 923 2,071 892 425 378 654 283 280 1,349 923 1,064
Interest 572 1,085 846 1,047 1,555 2,300 2,528 2,823 3,155 3,487 2,817 1,698 1,569
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 4,443
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 12,127
Tax % 32% 32% 33% 21% 14% 41% 42% 47% 34% 36% 42% 25%
Net Profit 5,014 3,594 2,329 2,652 2,035 -4,176 -2,756 -281 2,349 2,121 4,148 12,243 9,151
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 22.15
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: 32%
Compounded Profit Growth
10 Years: 13%
5 Years: 48%
3 Years: 68%
TTM: 2%
Stock Price CAGR
10 Years: 0%
5 Years: 7%
3 Years: 30%
1 Year: -39%
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
4,130 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
20,475 17,405 22,539 26,020 32,146 35,141 41,396 45,409 45,170 54,127 37,677 13,678
20,189 20,989 22,509 24,770 26,963 26,234 29,405 33,339 33,385 31,560 36,434 52,220
Total Liabilities 78,265 78,669 86,689 94,072 102,849 101,527 107,843 115,694 118,201 127,198 119,517 120,109
16,609 18,796 18,384 28,175 39,011 45,942 50,300 58,625 61,374 69,034 67,618 73,677
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
Investments 61 69 73 91 61 2,280 2,475 2,629 2,975 3,240 3,442 3,757
39,174 31,477 32,071 31,847 34,450 28,377 31,792 36,044 37,838 46,170 39,576 38,658
Total Assets 78,265 78,669 86,689 94,072 102,849 101,527 107,843 115,694 118,201 127,198 119,517 120,109

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 -3,413 -3,976
1,721 -5,084 3,009 1,017 3,775 743 3,302 269 -3,549 5,003 -19,690 -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 38 17
Inventory Days 200 206 299 272 370 308 274 199 243 370 207 168
Days Payable 56 49 63 56 77 82 90 87 89 97 93 145
Cash Conversion Cycle 178 195 273 259 319 255 209 137 179 325 152 40
Working Capital Days 43 58 76 50 48 10 -8 -10 7 75 5 -20
ROCE % 14% 11% 7% 5% 5% -6% -2% 3% 9% 8% 11% 24%

Shareholding Pattern

Numbers in percentages

Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021 Mar 2022 Jun 2022
75.00 75.00 75.00 75.00 75.00 75.00 65.00 65.00 65.00 65.00 65.00 65.00
3.74 3.57 2.91 2.81 3.23 4.16 4.32 5.01 5.38 4.41 4.58 4.22
14.38 14.69 14.58 14.12 13.65 12.91 16.63 15.56 12.46 10.51 10.24 8.79
0.05 0.06 0.06 0.06 0.06 0.07 0.07 0.08 0.08 0.08 0.00 0.09
6.83 6.68 7.45 8.02 8.06 7.86 13.99 14.36 17.09 20.01 20.18 21.91

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