The audited financial results of Steel Authority of India Limited (SAIL) for the year 2011-12, taken on record by its Board of Directors here today, showed the company's turnover for January-March (Q4) of FY '12 growing 13% over the corresponding period last year (CPLY) to Rs. 14,785 crore. SAIL's Q4 profit before tax (PBT) at Rs. 2,301 crore was 3.4% higher than CPLY, while profit after tax (PAT) at Rs. 1,577 crore showed improvement of 3% over CPLY. The company's profitability during Q4 showed substantial improvement over the previous quarter (Oct-Dec '11).
The robust performance in Q4 helped the company achieve gross sales turnover of over Rs. 50,000 crore during FY 2011-12, for the first time since inception, with a growth of 7% over the previous year. Massive cost push due to a variety of factors, however, chipped away the topline gains, resulting in SAIL's FY '12 PBT and PAT falling 28% y-o-y to Rs. 5,151 crore and Rs. 3,543 crore, respectively. The effect of input price increase, amounting to over Rs. 4,000 crore, mainly of imported coking coal with average prices rising to $288 in FY '12 from $213 the previous year, was compounded by the volatility in dollar-rupee valuations, carrying an adverse impact of around Rs. 900 crore.
Under SAIL's modernisation & expansion (M&E) plan, capital expenditure during FY '12 crossed Rs. 11,000 crore, taking cumulative expenditure on this count during the 11th Five Year Plan to Rs. 40,321 crore. M&E projects completed during 2011-12 included installation of a new turbo blower and rebuilding of Coke Oven Batteries (COBs) 1 & 2 at Bokaro Steel Plant, rebuilding of COB-6 at Bhilai Steel Plant, installation of new ladle furnace at Alloy Steels Plant, etc. SAIL has pegged outlay on M&E during the 12th Five Year Plan at Rs. 45,000 crore, including Rs. 14,500 crore during the current financial year.
During 2012-13, several new major production units will become operational at SAIL's IISCO Steel Plant at Burnpur, including Raw Material Handling System, Sinter Plant, COB-11, Blast Furnace, SMS and casters, Power Blowing Station and Wire Rod Mill, paving the way for full-fledged operations to start in this greenfield plant. Major facilities to be completed in other SAIL plants include:
700 tpd Oxygen Plant (operational since 3.5.12) and Ore Handling Plant at Bhilai Steel Plant
Medium Structural Mill and rebuilt COB-2 at Durgapur Steel Plant
New Raw Material Handling System, Sinter Plant-3, new COB-6, new Blast Furnace-5, new slab caster and converter at Rourkela Steel Plant
Hot Metal Desulphurisation Unit in SMS-2, Cold Rolling Mill-3 and Cast House Granulation System for BFs 1, 2 & 3 at Bokaro Steel Plant
With SAIL meeting capex requirements mainly through internal resources, the company's market borrowings were reduced by around Rs. 3,050 crore during FY '12, taking its debt-equity ratio to 0.41:1 as on 31.3.12. SAIL's net worth on 31.3.12 was Rs. 39,811 crore as against Rs. 37,069 crore a year ago.
During 2011-12, the company's subsidiary, Maharashtra Elektrosmelt Ltd (MEL), was amalgamated with SAIL and renamed as Chandrapur Ferro Alloy Plant. The Salem Refractory Unit of Burn Standard Company Limited (BSCL) was also transferred to SAIL Refractory Company Limited (SRCL), a wholly owned subsidiary of SAIL during the year.
SAIL continued to receive awards and accolades for its various achievements. For the 8th year in a row, SAIL received the MoU Excellence Award from the Prime Minister. The gold trophy of SCOPE Meritorius Award for Corporate Governance for 2010-11 also came to SAIL. Continuing to win honours for the company at various fora, SAIL employees won 103 of the 189 (54.5%) Prime Minister's Shram Awards for calendar years 2008, 2009 and 2010 presented in October '11. SAIL employees also bagged 50% i.e. 14 of the 28 Vishwakarma Rashtriya Puraskars for the year 2009 presented in Sept. '11. Bhilai Steel Plant of SAIL lifted the Prime Minister's Trophy for Best Integrated Steel Plant (2009-10) for the 10th time.
Reflecting on the achievements of the company during FY '12, SAIL Chairman Mr. C.S. Verma said: "It is a matter of great pride that SAIL's turnover crossed the Rs. 50,000-crore mark during a year in which the global economy faced many challenges. With 2012 having begun on a very positive note for us, and our strategic initiatives in several areas taking firm shape, our outlook is bright. The focus during the current year will be on completing the ongoing M&E plan to give SAIL the readiness to meet the projected growth in steel demand during the 12th Plan period and beyond."
