Thread by @FinterestC

#Didyouknow

Steel Authority of India (SAIL) is the largest steel-making company in India and one of the seven Maharatna’s of the country’s Central Public Sector Enterprises?

The co. has posted excellent Q2 FY22 figures, follow a thread on the same.
#sail #fundamentalanalysis

1)Global Steel Scenario
Global steel demand is expected to increase by 4.5% in 2021 and 2.2% in 2022. China is set to see a negative growth in 2021
at -1% and no growth/deceleration in 2022.
The global growth rate excluding China is expected to be 11.5% in 2021 and 4.7% in 2022.

2)In the Emerging and Developing Economies excluding China, steel demand is expected to grow by 11% in 2021 and 5% in 2022. The developed economies are expected to see
growth in steel consumption at 12.2% in 2021
and 4.3% in 2022.
(Short Range Outlook Oct'21)

3)As per the WSA Short Range Outlook of October’21, demand in India is projected to increase by 16.7% in
2021 and 6.8% in 2022.
Indian Steel Performance

4)Financial Performance
The Net Sales of the co. for Q2FY22 stands at Rs. 26,635 cr., showing a YoY growth of ~58%, as compared to Rs. 16,834 cr.
The EBITDA figures have reported a massive growth of 245.5% YoY.

5)SAIL's Expansion Plans - Expected Outcome
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.

6)Enhancement of Production volume by addition of 2 new 4060 m3 Blast Furnaces and one Blast Furnace of 4160 cu. meter.
Increased Market Share.
World class technology and products.
Improved Product Mix / proportion of value added products to increase.

7)Enhanced Pollution Control measures, with Environmental Conservation.

8)SAIL had a Capex of Rs.2134 crore during H1 FY22 which included Rs.1387 crore during Q2 FY22.
Current Product Mix v/s Product Mix post expansion

9)Much higher valuations of the co. are expected.

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