Steel Authority of India Limited
Steel Authority of India Limited (SAIL) is one of the largest steel-making companies in India and one of the Maharatnas of the countrys Central Public Sector Enterprises. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. SAIL manufactures and sells a broad range of steel products.
Product Mix FY24
- HR Plates/Coils/ Sheets: 27%
- Bars & Rods: 22%
- PM Plates: 14%
- Structurals: 9%
- Semis: 8%
- Rly Products: 8%
- Others: 12%
Shareholding Pattern
-PUBLIC GROUP
-PROMOTER GROUP
Financial Summary
| Particulars | March 2022 | March 2023 | March 2024 |
| Sales | 1,03,477 | 1,04,448 | 1,05,378 |
| Sales Growth % | 49.72% | 0.94% | 0.89% |
| Expenses | 82,114 | 96,410 | 94,229 |
| Operating Profit | 21,363 | 8,038 | 11,149 |
| OPM % | 21% | 8% | 11% |
| Net Profit | 12,243 | 2,177 | 3,067 |
| EPS in Rs | 29.64 | 5.27 | 7.42 |
Synopsis of Financials
- Crude steel production at 9.457 million tons, similar to last year; saleable steel sales volume at 8.108 million tons, down 6.3%.
- Domestic sales down by 4.5%, with turnover falling nearly 10% to INR 48,262 crores.
- Profitability: EBITDA at INR 5,593 crores, PBT at INR 1,127 crores, PAT at INR 844 crores.
- Borrowings stable at INR 35,596 crores, with a recent reduction from a peak of INR 39,163 crores.
Final Outlook
Sells-SAIL’s stock faces challenges due to high debt of ₹42,060 crore and declining performance in FY 2023-24 compared to the previous year. With lower financial performance and debt concerns, it may not be an ideal investment at this time.
SAIL’s future stock performance depends on global steel prices, domestic demand, and government infrastructure policies. In FY2023, it reported ₹77,904 crore in revenue and ₹3,979 crore in profit. SAIL’s revenue for FY 2023-24 was ₹1,05,375 crore, with a profit of ₹3,066 crore. Positive outlook for steel demand driven by government infrastructure spending. Management expects improved margins in upcoming quarters due to pricing stabilization and cost control measures. Despite a decline in quarterly performance. With a production capacity of 21 million tonnes, SAIL aims to expand and modernize. Steel prices, currently around ₹55,000–₹60,000 per tonne, positively impact profitability. However, its ₹42,060 crore debt remains a challenge. his represents a decline of approximately 23% in profit.
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