All-time high Q4 turnover of Rs. 11534 crore , up 14%; 133% higher PBT at Rs. 2925 crore
- All-time high annual turnover of Rs. 39189 crore - up 21%
- Highest-ever annual PBT of Rs. 9423 crore- up 65%; annual PAT at Rs. 6202 crore - up 55%
- 31% dividend to shareholders, incl.16% interim dividend
0 Strong demand for steel, market-driven product-mix, higher value-added special steel production and improved techno-economic parameters helped Steel Authority of India Ltd (SAIL) to achieve a record turnover of Rs. 11,534 crore during the Q4 of FY '07, an increase of 14% over the corresponding period of the previous year (CPPY). During the quarter, the company achieved a PBT of Rs. 2,925 crore - 133% higher than CPPY. SAIL's Q4 PAT at Rs. 1,902 crore has also been 72% higher than CPPY.
With this the company achieved an all-time high annual turnover of Rs. 39,189 crore and highest-ever profit before tax (PBT) of Rs. 9,423 crore during 2006-07. The company's audited financial results for FY '07, which were taken on record by the SAIL Board of Directors here today, showed a net profit of Rs. 6,202 ,an increase of 55%. SAIL also achieved the distinction of becoming the first company in the metals sector to cross market capitalisation of Rs. 50,000 crore.
The SAIL Board has recommended a dividend of 31% on paid-up equity amounting to over Rs. 1,280 crore, including the 16% interim dividend paid in March 2007, for the company's shareholders.
The company recorded highest-ever saleable steel production of 3.25 million tonnes (MT) during January-March 2007, taking annual production to a new peak of 12.6 MT during FY '07. Total sales of 11.9 MT during the year - a growth of 5% over the previous year - was also a new record. The company continued with its strategy of utilising the available potential of existing units and optimising production of value-added products during the year.
During the year, about 5.25 lakh tonnes of additional finished steel were produced by enhancing overall capacity utilisation to 114% of rated capacity (saleable steel), as compared to 109% during 2005-06, and by improving operational efficiency. In Q4, saleable steel capacity utilisation was stepped up to 119%. Record continuous cast production of 8.3 MT showed a growth of 5% over the previous year. The special steels plants of SAIL also recorded highest-ever saleable steel production of 4.54 lakh tonnes, a growth of 6% over 2005-06.
This production performance was supported by the captive mines of SAIL meeting nearly 100% iron ore requirement of the company with production of more than 24 MT of iron ore in 2006-07 , an increase of 2.6% over the previous year. Generation by SAIL's captive power plants also increased by 5% during the year.
Besides recording substantially higher labour productivity of 200 tonnes per man per year, the company achieved lowest-ever coke rate and energy consumption at 541 kg per tonne of hot metal and 7.16 giga calories per tonne of crude steel, respectively, in 2006-07. Blast furnace productivity also rose to 1.5 tonnes per cubic metre per day. In addition, thrust on cost reduction continued, resulting in a saving of around Rs. 400 crore. These factors enabled SAIL to partially negate the price increase of inputs such as coal, zinc, nickel, freight charges, etc.
In Q4, SAIL sold significantly higher volume of valued-added products like rails (16%), TMT bars (51%), structurals (41%), ERW pipes (43%), and alloy steels (22%). Annual sales of value-added products also went up, viz. pipes (48%) and electrical steel sheets (16%), as well as special products like LPG sheets/coils (93%), boiler quality and high-tensile plates (61%), etc.
During the year, SAIL developed new grades of products for projects of national importance such as the Delhi Metro, the highest railway bridge in the world over the Chenab river in Jammu & Kashmir, Mumbai airport revamp, building of Indian Navy aircraft carriers, rocket (PSLV) C-7 and C-8, the power projects of NHPC and NTPC, Worli-Bandra Sea Link in Mumbai, etc. Thrust on R&D resulted in development of special quality products such as S-profile loco wheels for DLW, Cu-Cr rail for coastal areas, vanadium micro-alloyed rails for high-speed trains, spring steel billets (SUP 11A), EN series HR coils for LPG cylinder, MC-12 HR coils for chains, etc.
The company expanded its marketing network to cover 527 of the 603 districts in the country during 2006-07. So far SAIL has appointed 650 dealers in these districts. 16 new warehouses and 12 customer contact offices were also opened during the year to extend reach of SAIL's branded products for the benefit of small users.
A total of 6,588 employees were separated naturally/voluntarily from the company's service during 2006-07, bringing down SAIL's manpower further to a level of 132,973 as on 31 st March 2007. However, provision made for increase in salary outgo, increase in dearness allowance, leave encashment, LTC, etc., during the year impacted the company's bottomline by over Rs. 900 crore.
The year 2006-07 has been a landmark year for the company, with modernisation & expansion schemes totalling Rs. 23,500 crore having been approved by the SAIL Board in a single year, mainly for ISP, Bokaro and Salem Steel Plants. The total value of projects already taken up for ordering/implementation has gone up to Rs. 38,000 crore. In addition, the company also took the decision to expand capacity of the power plant at Bokaro Steel Plant by 500 MW as joint venture of SAIL and DVC. Another power project of similar capacity is currently under implementation by SAIL-NTPC JV company at Bhilai and will be commissioned this year. SAIL also signed a shareholder's agreement with Jaiprakash Industries for setting up a 2.2 MT cement plant at Bhilai and Satna using slag generated by at Bhilai.
Commenting on the company's financial performance, Mr. S.K. Roongta, Chairman, SAIL, said: "The results are a reflection of the inner strengths of SAIL and its workforce, and we are determined to make optimum use of our resources. Together, SAIL is fully geared up to implement its modernisation & expansion plans to meet the growing demand for steel in the country."