Wednesday, January 4, 2012

SAIL=STEEL AUTHORITY OF INDIA = RESULTS FOR = Q2 FY 2012 =Q/E SEP,2011 = NPT DOWN -41%QOQ; -54.62% YOY = Q3 NEEDS WATCH


Steel Authority of India Limited

Q2 FY 2012 RESULTS
ANALYSIS

The performance of SAIL in the 2nd quarter of FY 2012 has been dismal.

Net Sales stands at Rs.10836.68 cr in Q2 FY 12 – compared to Rs.10810.94 cr in Q1 FY 12 (Up by 0.24%) –and Rs.10602.88 cr in Q2 FY 11(Up by 2.21%).

Raw Materials consumption stands at Rs.7384.27 cr in Q2 FY 12 – compared to Rs.6863.76 cr(Up by 7.58%) in Q1 FY 12 and Rs.6363.68 Cr in Q2 FY 11 (Up by 16.04%)

Employees Cost stands at Rs.1980.80 cr in Q2 FY 12- compared to Rs.2251.18 Cr in Q1 FY 12 (Down by -12%) and Rs.1700.37 cr  in        Q2 FY 11 (Up by 16.49%).

Other Expenditure     stands at Rs.740.28 Cr in Q2 FY 12 – compared to Rs.778.67 cr in Q1 FY 12 (down by -4.93%) and Rs.759.67 cr in Q2 FY 11 (down by -2.55%).

Total Expenditure stands at Rs.10046.26 cr in Q2 FY 12 – compared to Rs.9988.75cr in Q1 FY 12 (Up by 0.58%) and Rs.9480.21 cr in Q2 FY 11 (Up by 5.97%).

Profit from Operations stands at Rs.933.36 Cr in Q2 FY 12-compared to Rs.937.25cr in Q1 FY 12 (down by -0.42%) and Rs.1325.96 cr in Q2 FY 11 (down by -29.61%).

Other Income stands at Rs.490.26 cr in Q2 FY 12 – compared to Rs.463.04 cr in Q1 FY 12 (Up by 5.88%) and Rs.375.38 cr in Q2 FY 11 (Up by 30.6%).

Interest expense stands at Rs.200.01 cr in Q2 FY 12 – compared to Rs.170.95 cr (Up by 17%) and Rs.109.04 cr in Q2 FY 11 (Up by 83.43%).

Exceptional Items expense stands at Rs.508.72 in Q2 FY 12.   

Profit before tax has come down to Rs.714.89 cr in Q2 FY 12 – compared to Rs.1229.34 cr in Q1 FY 12 (down by -41.9%) and Rs.1592.30 cr in Q2 FY 11 (down by -55.1%)

Tax expense      has come down to Rs.220.25 cr in Q2 FY 12 –compared to Rs.391.28 cr (down by -43.7%) and Rs.502.29 cr in Q2 FY 11 (down by -56.15%).

Net Profit has come down in Q2 FY 12 to Rs.494.64 cr – compared to Rs.838.06 cr in Q1 FY 12 (down by -41%) and Rs.1090.01 cr in Q2 FY 11 (down by -54.62%)

Basic EPS comes to Rs.1.2 in Q2 FY 12; Rs.2.03 in Q1 FY 12; and Rs.2.64 in Q2 FY 11. Based on this performance, the annual EPS comes to Rs.6 to 7.

In current Qtr - there has not been much improvement in Sales, while total expenditure–specially in raw material consumption - has seen more than proportionate rise compared to Sales. This plus the exceptional Item have brought down profits drastically in current Qtr.

CURRENT Market price is Rs.84.80 and the 52 week high price is Rs.189.70 while the 52 week low price is Rs.73. current price earning ratio comes to 14.13.

SAIL has raised steel prices from October,2011.

The next quarter results need to be watched before investment.

ANNUAL REPORT 2011 SYNOPSIS

SAIL is implementing a mega modernization and expansion plan currently.

Under phase-1, SAIL’as hot metal production capacity will get expanded from present 13.8mn tones to 23.46 mn tones by 2012-13.

Presently, country’s per capita consum,ption of steel is 52 kg compared to 427 kg for china and a global average of approx.293 kg.

2010-11 turnover was Rs.47,041 cr – against Rs.43,935 cr in previous year. (Up 7%).

Produced 12.89 MT of Saleable steel –(Up 2%).

Production of value added & special steels – 4.7 MT (Up 3%).

Cash Reserves on31st March : Rs.17,000 Cr.

Total borrowings :Rs.20,165 cr.

D:E Ratio = 0.54 : 1

CAPEX : Rs.11,280 cr (Up 6%).

Profit after Tax : Rs.4904.74 cr (6,754.37 Cr)

EPS :Rs.11.9 (Rs.16.4)

ANNOUNCEMENTS BY SAIL

03-11-2011          standalone Results for the quarter ended on 30-SEP-2011 as follows: Net Sales of Rs. 1083668 lacs for quarter ending on 30-SEP-2011 against Rs. 1060288 lacs for the quarter ending on 30-SEP-2010. Net Profit / (Loss) of Rs. 49464 lacs for the quarter ending on 30-SEP-2011 against Rs. 109001 lacs for the quarter ending on 30-SEP-2010.

29-07-2011          standalone Results for the quarter ended on 30-JUN-2011 as follows: Net Sales of Rs. 1081094 lacs for quarter ending on 30-JUN-2011 against Rs. 902937 lacs for the quarter ending on 30-JUN-2010. Net Profit / (Loss) of Rs. 83806 lacs for the quarter ending on 30-JUN-2011 against Rs. 117665 lacs for the quarter ending on 30-JUN-2010.

29-07-2011          Ministry of Corporate Affairs has by its order dated June 10, 2011 sanctioned the scheme of amalgamation between Maharashtra Elektrosmelt Limited ('MEL') and Steel Authority of India Limited ('SAIL') under Sections 391 to 394 of the Companies Act, 1956 ('Scheme'). The Scheme has become effective from July 13, 2011. Pursuant to the Scheme, the equity shareholders of MEL will be entitled to receive shares of SAIL in the following exchange ratio: 1 fully paid-up equity share of Rs. 10 each of SAIL for every 1.7 fully paid-up equity share of face value of Rs. 10 each held by the equity shareholders of MEL. In terms of Clause 4.2.4 of the Scheme, the Board of Directors of SAIL in its meeting held on July 29, 2011 has fixed August 08, 2011 as the 'Record Date' for determining the names of the shareholders of MEL who will be entitled to be issued and allotted equity shares of SAIL as per the above exchange ratio.

24-06-2011          consolidated Results for the year ended on 31-MAR-2011 as follows: Net Sales of Rs. 4274962 lacs for year ending on 31-MAR-2011 against Rs. 4060015 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 493773 lacs for the year ending on 31-MAR-2011 against Rs. 679077 lacs for the year ending on 31-MAR-2010.

24-06-2011          standalone Results for the year ended on 31-MAR-2011 as follows: Net Sales of Rs. 4271871 lacs for year ending on 31-MAR-2011 against Rs. 4055138 lacs for the year ending on 31-MAR-2010. Net Profit / (Loss) of Rs. 490474 lacs for the year ending on 31-MAR-2011 against Rs. 675437 lacs for the year ending on 31-MAR-2010.

RESULTS TABLE
S A I L
30-Sep-11
30-Jun-11
% DIF
30-Sep-10
% DIF
Net Sales
1083668
1081094
0.24
1060288
2.21
Other Oprting Income
14294
11506
24.23
20329
-29.69
Increase in SIT/WIP
-45479
-27994
62.46
28652
-258.73
Raw Materials
738427
686376
7.58
636368
16.04
Traded Goods
192
92
108.7
115
66.96
Employees Cost
198080
225118
-12
170037
16.49
Depreciation
39378
37416
5.24
36882
6.77
Other Expenditure
74028
77867
-4.93
75967
-2.55
Total Expenditure
1004626
998875
0.58
948021
5.97
Profit from Operations
93336
93725
-0.42
132596
-29.61
Other Income
49026
46304
5.88
37538
30.6
Interest
20001
17095
17
10904
83.43
Exceptional Items
50872
-

-

Profit before tax
71489
122934
-41.9
159230
-55.1
Tax expense
22025
39128
-43.7
50229
-56.15
Net Profit
49464
83806
-41
109001
-54.62
Face Value (In Rs
10
10
0
10
0
Paid Up Equity
413053
413040
0
413040
0
Basic EPS after E.I
1.2
2.03
-40.9
2.64
-54.55
Diluted EPS after E.I
1.2
2.03
-40.9
2.64
-54.55
Public holding (%)
14.17
14.17
0
14.16
0.07






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