The document discusses the steel sector in India, with a focus on Steel Authority of India Limited (SAIL). It provides an overview of SAIL's business model, government policies impacting the steel industry, key developments, expansion plans, and short and long-term earnings growth projections. Valuation of SAIL is performed using the free cash flow to firm and residual income methods, arriving at a per share value of Rs. 154-151.
InterfaceIndian Ferro Alloy Industry –An Outlook
Steel Industry Snap Shot
Ferro Alloy Industry
Demand Drivers
Industry Structure
Capacity, Production, Exports & Imports
Raw Materials and Inputs
Manganese
Chrome
Power
Demand of Steel
Ferro Alloy Capacity Utilisation
Capacity Addition
Infrastructure
India’s Competitiveness
Conclusions
The paper to be published as the lead article in the Metals & Minerals Review – Ferroalloy Special – January 2013 issue makes a case that while there are many positives for the ferroalloy industry in India, viz. scalability, location near high growth markets, cost advantages of labour, technical manpower domestically available ore and reducing price of reductant blend; the growth in ferroalloy production is stymied by inadequate infrastructure, rising cost & availability issues in thermal coal, fear of getting saddled with old technology, and lack of capital.
The global slowing of demand for ferroalloys, the re-emergence of China as a major exporter and the threat of imports are other factors that the Indian ferroalloy industry would need to tackle.
Therefore it is very difficult to predict if the ferroalloy industry in India can repeat the spectacular double digit growth of the last five years. The only certainty is of ferroalloy prices; which have been volatile and unpredictable in the past – they will remain volatile and unpredictable in the future: some things will never change!!
InterfaceIndian Ferro Alloy Industry –An Outlook
Steel Industry Snap Shot
Ferro Alloy Industry
Demand Drivers
Industry Structure
Capacity, Production, Exports & Imports
Raw Materials and Inputs
Manganese
Chrome
Power
Demand of Steel
Ferro Alloy Capacity Utilisation
Capacity Addition
Infrastructure
India’s Competitiveness
Conclusions
The paper to be published as the lead article in the Metals & Minerals Review – Ferroalloy Special – January 2013 issue makes a case that while there are many positives for the ferroalloy industry in India, viz. scalability, location near high growth markets, cost advantages of labour, technical manpower domestically available ore and reducing price of reductant blend; the growth in ferroalloy production is stymied by inadequate infrastructure, rising cost & availability issues in thermal coal, fear of getting saddled with old technology, and lack of capital.
The global slowing of demand for ferroalloys, the re-emergence of China as a major exporter and the threat of imports are other factors that the Indian ferroalloy industry would need to tackle.
Therefore it is very difficult to predict if the ferroalloy industry in India can repeat the spectacular double digit growth of the last five years. The only certainty is of ferroalloy prices; which have been volatile and unpredictable in the past – they will remain volatile and unpredictable in the future: some things will never change!!
Bhushan Steel - A report and complete analysis of stock priceManeesh Garg
This report is analysis of Bhushan Steel's stock price, and its comparison with Steel Industry and Competitor Tata Steel
To get a copy of this report, share your views about the document with your email id in Comments section... I keep on updating my presentations and documents. To ensure that you don't miss any update or new uploads don't forget to press the "FOLLOW" and "LIKE" button. You can also mail me at manigarg21@gmail.com
October 2014 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
INDUSTRY ANALYSIS : Metal
COMPANY ANALYSIS : Tata Steel
Events Report
Concept of the Month
Quiz
Did You Know?
354110-005-1Though TSGs performance in the first half.docxtamicawaysmith
354
110-005-1
Though TSG's performance in the first half of fiscal 2009-10 was disappointing: the company
believed that the demand for steel products was reviving. In the second quarter of financial year
2009-10, TSO reported higher deliveries of 6.22 million tonnes as compared to 5.34 million tonnes
in the first quarter 0[2009·10, a growth of 17%. The company expected to utilize 100% capacity
by the end of' March 2010. Murhurarnan said, "In October, the capacity utilization had touched
80%. It should be 85% by the end of November and 100 per cent by the end of this financial year,
Demand is coming back.,,26
The operations of Tala Steel had been good since mid-200S backed by growth in rural construction
and the auto and infrastructure sectors, Automobiles had been registering healthy sales since April
2008, helping in the revival of the steel sector to an extent. The Indian government's expenditure
on infrastructure and rural development also favored the domestic steel sector. Banks had
aggressively slashed lending rates to increase the credit off-take, which had helped the real estate
and the auto sectors in India in 2009. Analysts estimated that steel consumption in India would
grow by 5-6% in 2009 while production would grow by 4-5%. Tara Steel had expanded its
production capacities by 20% in the fiscal 2008~09. It planned to increase its market share with the
expanded capacities.
However, the global demand For steel, especially the demand from rbe developed nations,
remained under pressure. Even though developed nations had deployed high amounts as stimulus
packages, the scope for infrastructure development which required large volumes of steel, was low
as they already had good infrastructure. The focus of the governments there was to increase
consumption and employment. The auto sector in the US and the UK were ailing because of low
demand and union related issues. Moreover, the auto companies in developed nations were facing
challenges of high debts and had to cut down production significantly.
However, TSG was optimistic about the future. It stated that the global steel demand was reviving
as companies had started building inventories. However, it stated that it would take several years
lor the consumption to reach the peak levels of2007. Moreover, analysts had revised their estimate
of a decline in demand for steel in the calendar year 2009 to 8% in October 2009 from their
previous estimate of a decline of 15% in April 2009.
Going forward, industry analysts had mixed opinions about the future performance of TSG.
According to Abhijeet Naik and Alok Rawat, Analysts at CLSA27 Asia-Pacific markets, "Tata
Steel's aggressive cost-cutting measures in Europe will ensure that COTUS will emerge from the
current downturn with a far-improved cost structure. While the restructuring charges will keep
FY I0 profits under pressure, we see a sharp profit recovery in FY II and FY 12.,,28
26 ~I~~f10~~~elSees Full Capacity Utilization at Corus on ...
Presentation titled "Chrome Business India – China Yesterday, Today and Tomorrow" seeks to explore the changing relationship between two Asian giants in face of a over 25% growth in SS production in China which propelled it to the #1 producer of stainless steel in the world and pressures posed by India\'s own impressive double digit growth in SS Production.
Bhushan Steel - A report and complete analysis of stock priceManeesh Garg
This report is analysis of Bhushan Steel's stock price, and its comparison with Steel Industry and Competitor Tata Steel
To get a copy of this report, share your views about the document with your email id in Comments section... I keep on updating my presentations and documents. To ensure that you don't miss any update or new uploads don't forget to press the "FOLLOW" and "LIKE" button. You can also mail me at manigarg21@gmail.com
October 2014 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
INDUSTRY ANALYSIS : Metal
COMPANY ANALYSIS : Tata Steel
Events Report
Concept of the Month
Quiz
Did You Know?
354110-005-1Though TSGs performance in the first half.docxtamicawaysmith
354
110-005-1
Though TSG's performance in the first half of fiscal 2009-10 was disappointing: the company
believed that the demand for steel products was reviving. In the second quarter of financial year
2009-10, TSO reported higher deliveries of 6.22 million tonnes as compared to 5.34 million tonnes
in the first quarter 0[2009·10, a growth of 17%. The company expected to utilize 100% capacity
by the end of' March 2010. Murhurarnan said, "In October, the capacity utilization had touched
80%. It should be 85% by the end of November and 100 per cent by the end of this financial year,
Demand is coming back.,,26
The operations of Tala Steel had been good since mid-200S backed by growth in rural construction
and the auto and infrastructure sectors, Automobiles had been registering healthy sales since April
2008, helping in the revival of the steel sector to an extent. The Indian government's expenditure
on infrastructure and rural development also favored the domestic steel sector. Banks had
aggressively slashed lending rates to increase the credit off-take, which had helped the real estate
and the auto sectors in India in 2009. Analysts estimated that steel consumption in India would
grow by 5-6% in 2009 while production would grow by 4-5%. Tara Steel had expanded its
production capacities by 20% in the fiscal 2008~09. It planned to increase its market share with the
expanded capacities.
However, the global demand For steel, especially the demand from rbe developed nations,
remained under pressure. Even though developed nations had deployed high amounts as stimulus
packages, the scope for infrastructure development which required large volumes of steel, was low
as they already had good infrastructure. The focus of the governments there was to increase
consumption and employment. The auto sector in the US and the UK were ailing because of low
demand and union related issues. Moreover, the auto companies in developed nations were facing
challenges of high debts and had to cut down production significantly.
However, TSG was optimistic about the future. It stated that the global steel demand was reviving
as companies had started building inventories. However, it stated that it would take several years
lor the consumption to reach the peak levels of2007. Moreover, analysts had revised their estimate
of a decline in demand for steel in the calendar year 2009 to 8% in October 2009 from their
previous estimate of a decline of 15% in April 2009.
Going forward, industry analysts had mixed opinions about the future performance of TSG.
According to Abhijeet Naik and Alok Rawat, Analysts at CLSA27 Asia-Pacific markets, "Tata
Steel's aggressive cost-cutting measures in Europe will ensure that COTUS will emerge from the
current downturn with a far-improved cost structure. While the restructuring charges will keep
FY I0 profits under pressure, we see a sharp profit recovery in FY II and FY 12.,,28
26 ~I~~f10~~~elSees Full Capacity Utilization at Corus on ...
Presentation titled "Chrome Business India – China Yesterday, Today and Tomorrow" seeks to explore the changing relationship between two Asian giants in face of a over 25% growth in SS production in China which propelled it to the #1 producer of stainless steel in the world and pressures posed by India\'s own impressive double digit growth in SS Production.
This is an Equity research report on JSW steel dated: 20/11/23, this report provides detailed information about Indian steel industry and its growth drivers.
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
Thinking of getting a dog? Be aware that breeds like Pit Bulls, Rottweilers, and German Shepherds can be loyal and dangerous. Proper training and socialization are crucial to preventing aggressive behaviors. Ensure safety by understanding their needs and always supervising interactions. Stay safe, and enjoy your furry friends!
This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
Executive Directors Chat Leveraging AI for Diversity, Equity, and InclusionTechSoup
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
1. STEEL AUTHORITY
OF INDIA LIMITED
METALS STEEL SECTOR - INDIA
Investment Theme :
With the recent stock price correction, we believe that the worst case
scenario is already priced in and valuations have become quite
reasonable. Any price increases in steel prices globally post July 2008
will provide further room for an upside. Thus, given that SAIL
business model is reasonably de-risked due to its captive iron ore
mines and 30% of its coking coal requirements being sourced from
CIL, the worst case scenario is already been factored in and valuations
are quite reasonable.
Government Policies
The government of India finally acted on steel in a bid to contain
rising steel prices. Import duty on pig iron and steel has been brought
COVERAGE - BUY down to zero while export duty of 5-15% has been imposed on various
steel products. To compensate, import duty on steel inputs like zinc
CMP – 135 INR and metallurgical coke has been lowered to 0%. We now expect focus
to start moving towards steel sector fundamentals.
US $ 13 BILLION
MARKET CAP INR 554 BILLION Key Developments
AVERAGE VOLUME NSE 13,329,239 Import duty on pig iron and mild steel reduced to 0% from 5%
previously
(Shares) BSE 4,250,450 TMT/structural bars are now exempt from 14% countervailing
52 WEEK: HIGH – 293 / LOW - 117.35 duty
Import duty on key inputs for steel like metallurgical coke, Ferro-
s
alloys and zinc brought down to 0% from 5% previously.
Export duty of 15% imposed on primary/semi finished steel & HR
coils/sheets, 10% on rolled products including CR coils/sheets,
pipes & tubes and 5% on galvanized coils and sheets.
ARANEGON
Telecom 470 CLP
Group – 6 I
Navin Bafna; Pratk Kumar; Punit Biyani; Mohd Ibrahim Said; Saurabh Bhalotia
SPJCM – January 2008 Finance Batch
Singapore – July 2008
2. METALS STEEL SECTOR - INDIA
SECTOR OUTLOOK
A US$ 200 per ton increase in the price of coking coal will erode the profits of the
non-integrated producers. Consequently, an increase in steel prices is imminent. In
the international market, steel billet and HR coil prices have risen by about US$
150/tonne to reach more than US$ 1000/tonne.
In India, steel producers will make zero profits as the rise in contract coking coal
prices will eliminate profits for the non-integrated producers. Only Tata Steel
(Indian operations) and SAIL have captive iron ore, and these two account for only
one third of total industry volume. Currently, based on the last three quarter’s
financials, on an average the industry makes blended PBT of USD 200/ ton. A price
increase in Jan-March 2008 will be neutralized by a sharp rise in iron ore cost for
non-integrated producers.
The Indian government has urged the steel industry not to raise prices and further
given inflationary concerns. We believe the industry has a strong case to raise
prices in order to restore profitability and invest in the long-term interests of the
industry. We believe controlling steel prices would be the worst possible outcome
since the industry would make no profits and government revenues would fall as a
result. Allowing steel price to increase based on free market factors is the ideal case.
However, given inflationary concerns, we believe that fiscal measures would
probably be in the best interest of everyone concerned.
Top Steel Producing Companies 2006
Rank Capacity Company
1 117.2 ArcelorMittal
2 32.7 Nippon Steel
3 32.0 JFE
4 30.1 Posco
5 22.5 Bao Steel
SAIL
TATA STEEL
JSW INDIA
Group – 6 II
Navin Bafna; Pratk Kumar; Punit Biyani; Mohd Ibrahim Said; Saurabh Bhalotia
SPJCM – January 2008 Finance Batch
Singapore – July 2008
3. METALS STEEL SECTOR - INDIA
IMPACT ON OTHER Focus on Fundamentals
With the near-term uncertainty of government action now out of
STEEL PLAYERS the way, we expect attention to once again start moving towards
steel sector fundamentals.
With domestic steel prices 10% lower If inflation continues to rise, drastic steps could happen going
than landed price of imports, we see forward; but the fact that the government has not taken these steps
little chance of steel companies now after a lot of internal deliberation indicates its reluctance and
cutting prices due to cut in import thought process on the same.
duty to 0% from 5% Steel pricing environment has improved in most regions with HRC
. steel prices now approaching US$1,100/ton. Moreover, with China
JSW Steel: JSW gets impacted most by likely to implement a quota system on steel exports, steel price
the imposition of 5-15% export duty strength could extend into 2HFY09 & FY10 too.
on steel but benefits to some extent The most benefited stock still remains Tata Steel, which will benefit
from the cut in import duty on zinc from a robust pricing environment in Europe and is relatively less
and coke. impacted by government action.
VALUATIONS
Other stocks: The import duty cut on
2008 EPS P/E RATIO P/BV
zinc to 0% hits Hindustan Zinc and
consequently Sterlite. Gujarat NRE SAIL 18 7.4 3.32
Coke gets impacted due to cut in TATA STEEL 200 3.1 2.61
import duty on coke to 0%. JSW 83 9.40 1.92
Tata Steel: Exports from India
constitute just 2-3% of total volumes. SAIL EPS P/E RATIO P/BV EV/EBITDA
2007 18.00 7.44 3.32 4.40
Sail: Exports from India constitute just 2008E 18.60 7.20 2.61 5.60
1-2% of total volumes. 2009E 23.70 5.65 1.92 4.10
2010E 25.50 5.25 1.86 3.70
Group – 6 III
Navin Bafna; Pratk Kumar; Punit Biyani; Mohd Ibrahim Said; Saurabh Bhalotia
SPJCM – January 2008 Finance Batch
Singapore – July 2008
4. METALS STEEL SECTOR - INDIA
EXPANSION PLANS
SAIL plans to increase its saleable steel capacity from the current
13mn tonnes to 23mn tonnes by FY12. It has also embarked on a
modernization plan to drive internal margin expansion. The
company plans to achieve entire production through BOF steel
making (currently at 78% of production) and continuous casting
route (currently at 64% of production).
Further, it plans to enable full application of coal dust injection fuel
and de-sulphurisation of hot metal; this will enable it to lower the
coke rate in its blast furnaces and produce low content sulphur steel
respectively.
SHORT TERM EARNINGS GROWTH
To improve realizations, over a period of 4-5 years, SAIL plans to
increase the proportion of value-added steel and completely
eliminate semi-finished steel from its product portfolio. The
company also plans to increase the production of auto grade CR
products, galvanized coils/sheets, plates, pipes, universal
beams/heavy beams, rails and wheels, and achieve a significant
jump in rounds and structural production to consume the entire
semi-finished steel.
This expansion and modernization plan, expected to now cost above
Rs540bn due to high business inflation, is likely to be funded in a
manner that the company’s debt-equity ratio remains within 1:1. At
the current steel prices, the company is self sufficient in meeting the
equity contribution for the expansion through internal accruals.
LONG TERM EARNINGS GROWTH
Group – 6 IV
Navin Bafna; Pratk Kumar; Punit Biyani; Mohd Ibrahim Said; Saurabh Bhalotia
SPJCM – January 2008 Finance Batch
Singapore – July 2008
5. METALS STEEL SECTOR - INDIA
2007-08 2008-09 2009-10 2010-11 2011-12 2012 onwards
Terminal
values
NOPAT 1538.06 1941.94 2744.55 3736.51 5923.44 9690.31
Return on NOA (RNOA) 6.21% 7.17% 9.15% 11.06% 14.98% 19.75%
Growth Rate 5.50% 5.50% 5.50% 5.50% 5.50% 4.00%
Reinvestment Ratio (RR) 88.55% 76.74% 60.09% 49.73% 36.71% 20.25%
Risk Free Rate (Rf) 7.00% 7.00% 7.00% 7.00% 7.00% 5.50%
Market Return (Rm) 12.00% 12.00% 12.00% 12.00% 12.00% 11.50%
Cost of Equity (Ke) 14.40% 14.40% 14.40% 14.40% 14.40% 14.38%
WaCC ( same as Ke, no debt) 14.40% 14.40% 14.40% 14.40% 14.40% 14.38%
Return on Equity (ROE) 10.19% 10.62% 12.49% 14.21% 18.63% 24.43%
Published Beta 1.48 1.48 1.48 1.48 1.48 1.48
FCFF 4640.23 4698.23 4756.96 4816.42 4876.63 4937.59
VALUATIONS
FCFF Method 2007-08 2008-09 2009-10 2010-11 2011-12 2012 onwards
Terminal
values
FCFF 4640 4698 4757 4816 4877 4938
Discounting Factor 1 1 1 1 1 10
Present Value of FCFF 4056 3590 3177 2812 2489 47568
TOTAL VALUE OF EQUITY (In
Cr) 63692
No of Shares (crore) 413
Value of Equity Per Share 154
Group – 6 V
Navin Bafna; Pratk Kumar; Punit Biyani; Mohd Ibrahim Said; Saurabh Bhalotia
SPJCM – January 2008 Finance Batch
Singapore – July 2008
6. METALS STEEL SECTOR - INDIA
Residual Income Method 2007-08 2008-09 2009-10 2010-11 2011-12 2012 onwards
Terminal
values
Book values (BV) 17606.95 21113.48 25151.33 30027.10 36910.06 47428.42
Residual Earnings (RE)= (ROE-
KE)*BV -740.87 -799.00 -479.92 -57.45 1560.03 4768.30
Discounting Factor 0.8741 0.7641 0.6679 0.5838 0.5104 9.6339
Present Value of RE -647.62 -610.51 -320.55 -33.54 796.17 45937.38
Book Value (Base Year-2006-07) = 17467.02
TOTAL VALUE OF EQUITY (In Cr) 62588.35
No of Shares (in crores) 413.04
Value of Equity Per Share 151.53
Group – 6 VI
Navin Bafna; Pratk Kumar; Punit Biyani; Mohd Ibrahim Said; Saurabh Bhalotia
SPJCM – January 2008 Finance Batch
Singapore – July 2008
7. METALS STEEL SECTOR - INDIA
Consolidated Profit & Loss Account
Projections (All Years)
2007-08 2008-09 2009-10 2010-11 2011-12 2012 onwards
INCOME Terminal values
Sales 46227 54086 64903 77883 97354 102222
Less : Excise Duty 8321 9735 11682 14019 17524 17378
37906 44350 53220 63864 79830 84844
Finished products internally consumed 493 577 692 830 1038 1103
Interest earned 4 4 5 5 6 7
Other revenues 831 856 881 908 935 963
Provisions no longer required written back 54 49 44 39 34 29
39288 45836 54843 65647 81844 86946
EXPENDITURE
Depletion to stocks 223 227 230 233 237 241
Raw materials consumed 22189 25961 31153 37384 46730 42933
Purchase of semi/finished products and others 231 270 325 389 487 307
Employees’ Remuneration & Benefits 5917 6804 7825 8999 10349 11694
Stores & Spares consumed 3455 3973 4569 5254 6042 6707
Power & Fuel 3477 4380 5519 6954 8762 10340
Repairs & Maintenance 440 462 485 509 535 561
Freight outward 717 742 768 794 822 851
Other expenses 1823 2005 2206 2427 2669 2883
Interest & finance charges 371 349 328 308 290 272
Depreciation 1077 1070 1146 1227 1315 783
Total 39919 46244 54553 64480 78238 77572
Less : Transferred to Inter Account 2595 3006 3546 4191 5085 5042
37325 43238 51007 60288 73152 72529
Adjustments
Loss for the year 1963 2598 3836 5359 8691 14417
Net Loss for the year 1963 2598 3836 5359 8691 14417
Provision for current tax -668 -883 -1304 -1822 -2955 -4902
Profit / Loss (-) after tax 1296 1715 2531 3537 5736 9515
Minority Interest 0 0 0 0 0 0
1296 1715 2531 3537 5736 9515
Balance brought forward from previous year (Net) 10955 9409 8546 8510 9253 11507
Amount available for Appropriation 12250 11123 11077 12046 14989 21022
Group – 6 VII
Navin Bafna; Pratk Kumar; Punit Biyani; Mohd Ibrahim Said; Saurabh Bhalotia
SPJCM – January 2008 Finance Batch
Singapore – July 2008
8. METALS STEEL SECTOR - INDIA
APPROPRIATIONS
Provision towards long term service awrds -15 -15 -15 -15 -15 -15
Amount transferred from Bonds Redemption Reserve(Net) 38 38 38 38 38 38
Transferred to General reserve -1225 -1112 -1108 -1205 -1499 -2102
Interim Dividend -1225 -1112 -1108 -1205 -1499 -2102
Proposed dividend -368 -334 -332 -361 -450 -631
Tax on Dividend -48 -43 -43 -47 -58 -82
Loss carried over to Balance Sheet 9409 8546 8510 9253 11507 16128
Re-Formative Profit & Loss Statement
2007-08 2008-09 2009-10 2010-11 2011-12 2012 onwards
Terminal
values
Operating Revenue 39284 45832 54838 65642 81837 86939
Operating Expense 36954 42889 50679 59980 72863 72257
Operating Income (Before tax) 2330 2942 4158 5661 8975 14682
Taxes -668 -883 -1304 -1822 -2955 -4902
Add: Tax on financial items -125 -117 -110 -103 -96 -90
Operating Income (After tax) 1538 1942 2745 3736 5923 9690
Financial Income 4 4 5 5 6 7
Financial Expense 371 349 328 308 290 272
Less: Tax on financial items -125 -117 -110 -103 -96 -90
Net Financial Expense 242 227 213 200 187 175
Net Earnings 1780 2169 2958 3936 6111 9866
Group – 6 VIII
Navin Bafna; Pratk Kumar; Punit Biyani; Mohd Ibrahim Said; Saurabh Bhalotia
SPJCM – January 2008 Finance Batch
Singapore – July 2008
11. METALS STEEL SECTOR - INDIA
Certification of Research Analyst
We hereby certify that the views expressed in the attached research report accurately reflect our
personal views about SAIL and its securities, related to the specific views or recommendations
expressed in the research report.
Disclaimer Clause
The information and opinions contained herein have been compiled or arrived at based upon
information obtained in good faith from sources believed to be reliable. Such information has not been
independently verified and no guarantee, representation or warranty, express or implied is made as to
its accuracy, completeness or correctness. All such information and opinions are subject to change
without notice. This report has been produced independently of any company or companies
mentioned herein, and forward looking statements, opinions and expectations contained herein are
entirely those of researchers and given as part of its normal research activity.
This document is for information purposes only and is provided on an “as is” basis. Descriptions of any
company or companies or their securities mentioned herein are not intended to be complete and this
document is not, and should not be construed as an offer, or solicitation of an offer, to buy or sell any
securities or other financial instruments. We are not soliciting any action based on this research report.
Sources
• www.wikipedia.com
• www.equitymaster.com
• www.bseindia.com
• www.nseindia.com
• www.worldsteel.org
• http://indiabudget.nic.in/
http://indiabudget.nic.in/
• http://finmin.nic.in/
• http://www.worldsteel.org/
• http://www.worldsteeldynamics.com/
Group – 6 XI
Navin Bafna; Pratk Kumar; Punit Biyani; Mohd Ibrahim Said; Saurabh Bhalotia
SPJCM – January 2008 Finance Batch
Singapore – July 2008