• All-time high Q4 turnover of Rs.15530 cr. – up 35%

  • 25% higher Q4 PBT of Rs. 3665 cr.

  • All-time high annual turnover of Rs.45555 cr. – up 16%

  • Highest-ever annual PBT Rs. 11469 cr., PAT Rs. 7537 cr.

  • 37% dividend to shareholders, incl.19% interim dividend


High production and productivity, market-driven product mix, substantially higher value-added/special steel production, several initiatives towards cost reduction, along with strong demand for steel enabled Steel Authority of India Limited (SAIL) to achieve new financial and physical performance landmarks during the year 2007-08. The company's audited financial results for FY '08 were taken on record by the SAIL Board of Directors here today.

With a growth of 35% over the corresponding period of the previous year (CPPY), the record turnover of Rs. 15,530 crore achieved in Q4 of FY '08 helped SAIL's annual turnover to reach an all-time high level of Rs. 45,555 crore – an increase of 16.2% over 2006-07. During Q4 of 2007-08, the company also achieved highest-ever quarterly profit before tax (PBT) of Rs. 3,665 crore – 25% higher than CPPY.

During 2007-08, SAIL's PBT at Rs. 11,469 crore as well as profit after tax (PAT) at Rs. 7,537 crore were all-time high – showing an increase of 21.7% and 21.5%, respectively.

The SAIL Board has recommended its highest-ever dividend at 37% on paid-up equity amounting to over Rs. 1,500 crore for the company's shareholders for the year 2007-08. This includes the 19% interim dividend paid in February 2008. Previous highest dividend payout was 33% for the year 2004-05.

SAIL recorded highest-ever saleable steel production of 3.5 million tonnes (6% growth) during January-March 2008, taking annual production to a new peak of 13 million tonnes during FY '08 with a capacity utilisation of 118%. The company continued with its strategy of utilising the available potential of existing units and optimising production of special quality/value-added products, production of which went up to 3.5 million tonnes – up by 30% over 2006-07. Over 30 new products were developed for special applications during the year, including high corrosion/earthquake resistant TMT rebars for construction, high tensile plates for hydel power projects and high yield strength (SAILMA 550 HI) plates, SUP-11A/9 grade spring steel for auto sector, environment-friendly C-5 coated CRNO sheets,

armour steel plates for the defence sector, boron-treated aluminium-killed low carbon steel, vanadium micro-alloyed rails for application in tracks for higher axle load at high speed, low carbon HR coils with titanium for extra deep drawing, etc.
In 2007-08, the SAIL plants achieved record production through the energy-efficient continuous casting route at 8.9 million tonnes, showing a growth of 7% and capacity utilisation of 128%. The special steels plants of SAIL also recorded highest-ever saleable steel production of 5.13 lakh tonnes, showing a growth of 13% over 2006-07. For the first time, production by SAIL's captive collieries crossed the million-tonne mark, a growth of 47% over the previous year.

Best-ever sales of 12.3 million tonnes during the year showed substantial growth in sales of value-added products like long rails of 130/260 metres (56%), plates (8%), HR coils (7%) and medium structurals (20%). For the first time, SAIL's marketing network covered all districts in the country during 2007-08, with addition of about 1,200 new dealers. SAIL thus became the first steel company in the country to have a distribution network covering each and every district.

The company achieved lowest-ever energy consumption at 6.95 giga calories per tonne of crude steel and coke rate at 533 kgs per tonne of hot metal in 2007-08 by fine-tuning operational efficiencies. In addition, thrust on cost reduction continued, resulting in a saving of over Rs. 300 crore. These factors enabled SAIL to partially offset the price increase of inputs such as coal, zinc, nickel, freight charges, etc.

There was a total reduction of 4,169 employees in the company's workforce during 2007-08, after accounting for fresh recruitment of 2,656 to improve skill and age mix, bringing down SAIL's manpower further to a level of 128,804 as on 31st March 2008.

During 2007-08, SAIL's modernisation & expansion programme was given a special thrust. Orders were placed for investments of over Rs. 20,000 crore for projects at IISCO Steel Plant and Salem Steel Plant, besides some key packages at Bokaro, Rourkela and Durgapur Steel Plants. The company implemented some strategic measures, including strengthening of its Project set-up with introduction of Integrated Project Management system, adoption of latest monitoring techniques and empowerment of employees at various levels, to ensure timely implementation of the expansion plans.

A number of other strategic initiatives were taken by the company during 2007-08, primarily to ensure security of raw material supplies and expand business. These included the decision to install Steel Processing Units in states where SAIL has no plants, equity participation in International Coal Ventures Ltd, a special purpose vehicle formed with four other PSUs for acquisition of coal assets in overseas territories, and MoUs with MOIL and Tata Steel. Strategic initiatives in other areas included setting up of two joint venture companies for production of slag cement at Bhilai and Bokaro with Jaiprakash Associates, an SEZ at Salem along with M/s IL&FS, decision to install a wind power plant of 50 MW capacity in Tamil Nadu, expansion of JV captive power plants by 1250 MW at Bhilai and Bokaro, alliance with POSCO, Korea for exchange of knowhow and establishment of SAIL Growth Works at Kulti for production of non-ferrous and ferrous castings.
Committed to bringing development and growth in every corner of the country, SAIL spent around Rs. 120 crore on corporate social responsibility (CSR) initiatives during 2007-08. The company adopted 79 villages across eight states as Model Steel Villages for exclusive development of medical facilities, education, roads, sanitation, community centres, etc. As an initiative towards achieving 100% literacy in steel townships during 2007-08, five free schools were set up for the first time for underprivileged children to provide free midday meals, school uniforms, text books, etc. Five free medical health centres were set up at Bhilai, Bokaro, Rourkela and Burnpur providing free medical consultation, medicines, etc., for needy persons. Besides, over 400 medical camps were held during the year by SAIL plants/units in 11 states, providing free health check-up and treatment to over 5 lakh persons.

Commenting on the company's performance, Mr. S.K. Roongta, Chairman, SAIL, said: "SAIL has proved its fundamental strengths once again, the most significant of which is its committed workforce – ever eager to attain new peaks in performance and to meet the growing demand for steel in the country."
SAIL signs MoU with BEML for crucial equipment supply
Steel Authority of India Limited (SAIL) today signed a memorandum of understanding with Bangalore-based Bharat Earth Movers Limited (BEML), for supply of crucial equipment required for the company's present operations as well as for its ongoing modernisation & expansion programme. Mr. V.K. Gulhati, Director (Technical), SAIL, and Mr. M. Poongavanam, Director (Mining & Construction), BEML, signed the MoU in the presence of Mr. V.S. Natrajan, Chairman-cum-Managing Director, BEML, at Bangalore.
SAIL's growth plan, which envisages its hot metal production capacity rising to over 26 million tonnes by the year 2010, will call for a quantum increase in raw material requirement. This is planned to be sourced not only from the company's existing mines but also from new mining blocks. As a result, the requirement for crucial equipment like dumpers, shovels, dozers, etc., will rise substantially, both in SAIL mines and plants.

Under the MoU, BEML, a Mini Ratna category-1 PSU under the Ministry of Defence, will supply the required equipment at a mutually agreed price for the next three years. The agreement will also enable SAIL to contain maintenance cost, as BEML will undertake maintenance of the equipment for their entire economic life with guaranteed equipment availability.