SAIL 4Q FY 2013

7/28/2019 SAIL 4Q FY 2013

1/12

Please refer to important disclosures at the end of this report 1

Quarterly performance-StandaloneParticulars (` cr) 4QFY13 4QFY12 % chg (yoy) 3QFY13 % chg (qoq)Net Sales 12,162 13,397 (9.2) 10,495 15.9EBITDA 914 1,871 (51.2) 1,138 (19.7)

% margin 7.5 14.0 (645)bp 10.8 (333)bp

Adjusted PAT 430 852 (49.5) 515 (16.5)Source: Company, Angel Research

Steel Authority of India (SAIL) reported disappointing 4QFY2013 profitability

performance due to lower realizations and higher costs. We recommend aReduce rating on the stock.Lower volumes and realizations drag top-line: During 4QFY2013, SAILs netsales declined by 9.2% yoy to `12,162cr (above our estimate of `11,640cr),

mainly due to lower realizations and volumes. The companys realizations stood

at `38,008/tonne, compared to `40,598/tonne in 4QFY2012. Its volumes also

declined 3.0% yoy to 3.2mn tonne.Higher staff costs and lower other operating income dent companys EBITDA:The staff costs for the company increased 35.9% yoy to `2,473cr and the other

operating income declined by 43.0% yoy to `168cr. The EBITDA, therefore, decreased

by 51.2% yoy to `914cr and EBITDA margin contracted by 645bp yoy to 7.5%.

Higher tax rate and interest expenses drag bottom-line further down: Thecompany reported a net interest expense of `14cr in 4QFY2013 compared to anet interest income of `86cr in 4QFY2012. The tax rate for the company also

increased to 39.7% in 4QFY2013 compared to 31.5% in 4QFY2012 and hence

the adjusted net profit declined by 49.5% yoy to `430cr (significantly lower than

our estimate of `725cr) for 4QFY2013.Outlook and valuation:We expect SAILs operational and financial performanceto be impacted by 1) its inability to maintain/raise sales volumes amidst slower

demand growth; 2) higher employee costs, and 3) delays/cost overruns in its

brownfield expansion projects. SAIL is on the verge of expanding its saleable

steel production capacity from 12.4mn tonne to 20.2mn tonne by FY2015.

However, the current rich valuation of 5.1x FY2015E EV/EBITDA discounts its

anticipated volume growth over FY2013-FY2016. Hence, valuing the stock at6.5x FY2015 EV/EBITDA, we derive a target price of `53 and recommend aReduce rating on the stock.Key financials - ConsolidatedY/E March (` cr) FY2012 FY2013E FY2014E FY2015ENet sales 45,665 44,060 54,786 64,505% chg 6.8 (3.5) 24.3 17.7

Net profit 3,545 2,181 2,155 2,958% chg (28.2) (38.5) (1.1) 37.2

EPS (`) 8.6 5.3 5.2 7.2EBITDA margin (%) 13.3 11.1 9.4 11.5

P/E (x) 6.2 9.8 10.9 8.0

P/BV (x) 0.6 0.6 0.6 0.5RoE (%) 9.2 5.4 5.2 6.8

RoCE (%) 7.8 5.8 5.2 7.7

EV/Sales (x) 0.7 0.8 0.7 0.6

EV/EBITDA (x) 5.3 7.0 7.1 5.1

Source: Company, Angel Research

REDUCECMP `57

Target Price `53

Investment Period 12 months

Stock Info

Sector

1,642

Bloomberg Code SAIL@IN

Shareholding Pattern (%)

Promoters 85.8

MF / Banks / Indian Fls 7.4

FII / NRIs / OCBs 3.9

Indian Public / Others 2.9

Abs. (%) 3m 1yr 3yr

Sensex 3.5 22.2 14.2

SAIL (16.7) (38.1) (71.7)

10

19,546

5,919

SAIL.BO

23,521

1.3

102/56

421,558

Steel

Avg. Daily Volume

Market Cap (` cr)

Beta

52 Week High / Low

Net debt (` cr)

Face Value (`)

BSE Sensex

Nifty

Reuters Code

Bhavesh ChauhanTel: 022- 39357800 Ext: 6821

[email protected]

Vinay RachhTel: 022- 39357600 Ext: 6841

[email protected]

Steel Authority of IndiaPerformance Highlights

4QFY2013 Result Update | Steel

June 4, 2013

7/28/2019 SAIL 4Q FY 2013

2/12

SAIL | 4QFY2013 Result Update

June 4, 2013 2

Exhibit 1:Quarterly performance - Standalone(` cr) 4QFY13 4QFY12 yoy (%) 3QFY13 qoq % FY13 FY12 yoy (%)Net sales 12,162 13,397 (9.2) 10,495 15.9 43,961 45,639 (3.7)Raw material 5,654 6,866 (17.7) 4,583 23.4 19,186 21,706 (11.6)% of net sales 46.5 51.2 43.7 43.6 47.6

Power & fuel 1,209 1,156 4.6 1,114 8.5 4,820 4,425 8.9

% of net sales 9.9 8.6 10.6 11.0 9.7

Staff cost 2,473 1,821 35.9 2,081 18.8 8,637 7,917 9.1

% of net sales 20.3 13.6 19.8 19.6 17.3

Other expenditure 2,081 1,979 5.2 1,753 18.7 7,278 (5,398) (234.8)

% of net sales 17.1 14.8 16.7 16.6 (11.8)

Total expenditure 11,417 11,821 (3.4) 9,532 19.8 28,505 40,235 (29.2)

Operating profit 746 1,576 (52.7) 963 (22.5) 4,040 5,404 (25.2)OPM% 6.1 11.8 9.2 9.2 11.8

Other operating income 168 295 (43.0) 175 (4.3) 637 (688) (192.7)

EBIDTA 914 1,871 (51.2) 1,138 (19.7) 4,677 6,092 (23.2)% of net sales 7.5 14.0 10.8 10.6 13.3

Interest income/(Expenses) (14) 86 - (14) (3.2) 79 7,838 (99.0)

Depreciation 184 389 (52.8) 405 (54.7) 1,393 1,566 (11.1)

Other income 8 8 - 13 (38.3) 107 (91) (217.4)

Exceptional items 16 725 (31) (229) 262

Profit before tax 741 2,301 (67.8) 702 5.6 3,241 5,139 (36.9)% of net sales 6.1 17.2 6.7 7.4 11.3

Current tax 294 724 (59.4) 217 35.5 1,070 1,608 (33.4)

% Tax rate 39.7 31.5 31.0 33.0 31.3

Profit after tax 447 1,577 (71.7) 484 (7.8) 2,170 3,543 (38.7)Adjusted PAT 430 852 (49.5) 515 (16.5) 2,400 3,793 (36.7)


Exhibit 2:4QFY2013 Actual vs Angel estimates(` cr) Actual Estimates Variation (%)Net sales 12,162 11,640 4.5

EBITDA 914 1,432 (36.2)

EBITDA margin (%) 7.5 12.3 (479)bp

Adjusted PAT 430 725 (40.7)


7/28/2019 SAIL 4Q FY 2013

3/12


June 4, 2013 3

Result highlightsLower volumes and realizations drag top-lineDuring 4QFY2013, SAILs net sales declined by 9.2% yoy to `12,162cr (above ourestimate of `11,640cr), mainly due to lower realizations and volumes. The

companys realizations stood at `38,008/tonne, compared to `40,598/tonne in

4QFY2012. Its volumes also declined 3.0% yoy to 3.2mn tonne.

Exhibit 3:Sales volume stood at 3.2mn tonne


Exhibit 4:Top-line declined by 9.2% yoy


Higher staff costs and lower other operating income dent companysEBITDAThe staff costs for the company increased 35.9% yoy to `2,473cr and the otheroperating income declined by 43.0% yoy to `168cr. The EBITDA therefore

decreased by 51.2% yoy to `914cr and EBITDA margin contracted by 645bp yoy

to 7.5%.

Exhibit 5:Quarterly performance- Standalone(`/tonne of saleable steel) 4QFY13 4QFY12 yoy (%) 3QFY13 qoq (%)Revenue 38,008 40,598 (6.4) 38,162 (0.4)Cost 34,200 37,095 (7.8) 34,111 0.3Raw-material cost 17,668 20,806 (15.1) 16,666 6.0

Power and fuel 2,300 4,777 (51.9) 3,502 (34.3)

Staff cost 7,729 5,517 40.1 7,569 2.1

Other expenditure 6,502 5,996 8.5 6,375 2.0

EBITDA 2,887 5,670 (49.1) 4,140 (30.3)EBITDA (US$/tonne) 53 112 (52.4) 77 (30.3)


2.92.6

3.3

2.5 2.62.8

3.2

-25.0

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

2QFY12 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13

(%)

(mn

tonnes)

Sales volume (LHS) YoY Growth

10,83710,594

13,397

10,641 10,663 10,495

12,162

(15)

(10)

(5)

0

5

10

15

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000


(%)

(`cr)

Net revenue (LHS) yoy chg (RHS)

7/28/2019 SAIL 4Q FY 2013

4/12


June 4, 2013 4

Higher tax rate and interest expenses drag bottom-line further downThe company reported a net interest expense of `14cr for 4QFY2013 compared to

a net interest income of `86cr in 4QFY2012. The tax rate for the company also

increased to 39.7% in 4QFY2013 compared to 31.5% in 4QFY2012and hence the

adjusted net profit declined by 49.5% yoy to `430cr (significantly lower than our

estimate of `725cr) in 4QFY2013.

Exhibit 6:EBITDA margin stood at 7.5%


Exhibit 7:Adj. PAT stood at `430cr


12.2

14.9

14.0

14.2

10.4

10.8

7.5

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2QFY123QFY12 4QFY121QFY13 2QFY13 3QFY13 4QFY13

(%)

(`cr)

EBITDA (LHS) EBITDA margin (RHS)

1,003

1,098

852953

501

515430

(60)

(50)

(40)

(30)

(20)

(10)

0

10

20

0

200

400

600

800

1,000

1,200


(%)

(`cr)

Adj. PAT (LHS) yoy chg (RHS)

7/28/2019 SAIL 4Q FY 2013

5/12


June 4, 2013 5

Investment rationale

Slow progress on capacity continuesSAIL is increasing its saleable steel production capacity from 12.4mn tonne to20.2mn tonne by FY2015 at a capex of `70,000cr. We expect strong profitability

from these plants, with captive iron ore backing the upcoming steel expansion.

Also, we expect SAIL's older loss-making plants to be modernized as part of its

modernization program. However, the company has reported delays in its

expansion projects over the last few quarters. Going forward, we do not rule out

further delays and cost over-runs in its expansion plans.

Sales volumes continue to disappointSAIL reported disappointing sales volumes for FY2013 in the midst of lower steel

demand. Lower-than-expected volumes reflect lower demand in India as well as

lack of focus on marketing by SAIL, in our view. Given the slowdown in steel

demand in India, and rising imports from FTA countries (which attract lower import

duty), we remain skeptical over SAILs sales volume growth during FY2014.

Outlook and valuation

We expect SAILs operational and financial performance to be impacted by 1) its

inability to maintain/raise sales volumes amidst slower demand growth; 2) higher

employee costs, and 3) delays/cost overruns in its brownfield expansion projects.

SAIL is on the verge of expanding its saleable steel production capacity from

12.4mn tonne to 20.2mn tonne by FY2015. However, the current rich valuation of

5.1x FY2015E EV/EBITDA discounts its anticipated volume growth over FY2013-FY2016. Hence, valuing the stock at 6.5x FY2015 EV/EBITDA, we derive a targetprice of `53 and recommend a Reduce rating on the stock.Exhibit 8:EPS Angel forecast vs ConsensusYear (%) Angel forecast Bloomberg consensus Variation (%)FY14E 5.2 6.9 (24.4)

FY15E 7.2 7.8 (8.2)

Source: Bloomberg, Angel Research

7/28/2019 SAIL 4Q FY 2013

6/12


June 4, 2013 6

Exhibit 9:EV/EBITDA


Exhibit 10:P/E band


Exhibit 11:P/BV band


0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

Jan-0

5

May-0

5

Sep-0

5

Jan-0

6

May-0

6

Sep-0

6

Jan-0

7

May-0

7

Sep-0

7

Jan-0

8

May-0

8

Sep-0

8

Jan-0

9

May-0

9

Sep-0

9

Jan-1

0

May-1

0

Sep-1

0

Jan-1

1

May-1

1

Sep-1

1

Jan-1

2

May-1

2

Sep-1

2

Jan-1

3

May-1

3

(`

cr)

2x 5x 8x 11x 14x

0

50

100

150

200

250

300

350

400

Jan-0

5

May-0

5

Sep-0

5

Jan-0

6

May-0

6

Sep-0

6

Jan-0

7

May-0

7

Sep-0

7

Jan-0

8

May-0

8

Sep-0

8

Jan-0

9

May-0

9

Sep-0

9

Jan-1

0

May-1

0

Sep-1

0

Jan-1

1

May-1

1

Sep-1

1

Jan-1

2

May-1

2

Sep-1

2

Jan-1

3

May-1

3

(`)

5x 10x 15x 20x

0

50

100

150

200

250

300

350

400

450

Jan-0

5

May-0

5

Sep-0

5

Jan-0

6

May-0

6

Sep-0

6

Jan-0

7

May-0

7

Sep-0

7

Jan-0

8

May-0

8

Sep-0

8

Jan-0

9

May-0

9

Sep-0

9

Jan-1

0

May-1

0

Sep-1

0

Jan-1

1

May-1

1

Sep-1

1

Jan-1

2

May-1

2

Sep-1

2

Jan-1

3

May-1

3

(`)

1x 2x 3x 4x

7/28/2019 SAIL 4Q FY 2013

7/12


June 4, 2013 7

Exhibit 12:Recommendation summaryCompany CMP Target Price Reco. Mcap Upside P/E (x) P/BV (x) EV/EBITDA (x) RoE (%) RoCE (%)

(`) (`) (` cr) (%) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15ESAIL 57 53 Reduce 23,521 (7) 10.9 8.0 0.6 0.5 7.1 5.1 5.2 6.8 5.2 7.7Tata Steel 298 378 Buy 28,971 27 9.6 6.3 0.9 0.8 6.0 4.9 9.6 13.4 9.1 11.2

JSW Steel 710 - Neutral 15,885 - 9.9 8.6 0.9 0.8 4.3 3.8 9.0 9.6 10.1 10.4


Company background

Incorporated in 1973, SAIL is one of the leading steel-making companies in India

with an annual saleable steel production capacity of 12.4mn tonne. Major plants

owned by SAIL are located at Bhilai, Bokaro, Durgapur, Rourkela, Burnpur and

Salem. The companys steel plants are fully backed by captive iron ore mines. SAIL

has a Navratna status; thus, it enjoys significant operational and financialautonomy. During February 2011, SAIL received clearances for Chiria iron ore

mines, which have proven reserves of 1.8bn tonne.
http://en.wikipedia.org/wiki/Bhilaihttp://en.wikipedia.org/wiki/Bokaro_Steel_Cityhttp://en.wikipedia.org/wiki/Durgapur,_West_Bengalhttp://en.wikipedia.org/wiki/Rourkelahttp://en.wikipedia.org/wiki/Burnpurhttp://en.wikipedia.org/wiki/Salem,_Tamil_Naduhttp://en.wikipedia.org/wiki/Salem,_Tamil_Naduhttp://en.wikipedia.org/wiki/Burnpurhttp://en.wikipedia.org/wiki/Rourkelahttp://en.wikipedia.org/wiki/Durgapur,_West_Bengalhttp://en.wikipedia.org/wiki/Bokaro_Steel_Cityhttp://en.wikipedia.org/wiki/Bhilai

7/28/2019 SAIL 4Q FY 2013

8/12


June 4, 2013 8

Profit & loss statement- Consolidated

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015EGross sales 44,002 47,103 50,361 49,457 60,420 71,138

Less: Excise duty 3,425 4,353 4,696 5,307 5,634 6,633Net sales 40,551 42,750 45,665 44,060 54,786 64,505Other operating income 0 590 688 837 368 386

Total operating income 40,551 43,339 46,353 44,898 55,154 64,891% chg (7.2) 6.9 7.0 (3.1) 22.8 17.7

Total expenditure 31,157 35,742 40,267 39,997 49,980 57,469Net raw materials 18,601 18,686 21,662 18,997 26,314 30,869

Other mfg costs 6,305 3,720 4,470 4,830 9,149 10,772

Personnel 5,527 7,678 7,936 8,848 9,202 9,570

Other 3,619 5,657 6,199 7,322 5,314 6,257

EBITDA 9,395 7,598 6,086 4,901 5,174 7,423% chg 10.1 (19.1) (19.9) (19.5) 5.6 43.5

(% of net sales) 23.2 17.8 13.3 11.1 9.4 11.5

Depreciation 1,430 1,488 1,567 1,405 1,756 2,283

EBIT 7,965 6,109 4,518 3,496 3,418 5,140% chg 9.9 (23.3) (26.0) (22.6) (2.2) 50.4

(% of net sales) 19.6 14.3 9.9 7.9 6.2 8.0

Interest charges 474 475 678 748 935 1,309

Other income 2,782 1,481 1,576 937 735 585

(% of PBT) 27.1 20.8 29.1 25.4 22.8 13.3

Share in profit of asso. - - - - - -

Recurring PBT 10,273 7,115 5,416 3,685 3,218 4,416% chg 9.3 (30.7) (23.9) (32.0) (12.7) 37.2

Extra. Inc/(Expense) - 125 (262) (229.3) - -

PBT (reported) 10,299 7,240 5,154 3,255 3,218 4,416Tax 3,448 2,302 1,609 1,075 1,063 1,458

(% of PBT) 33.5 31.8 31.2 33.0 33.0 33.0

PAT (reported) 6,851 4,938 3,545 2,181 2,155 2,958Add: Earnings of asso. - - - - - -

Less: Minority interest - - - - - -

Extra. Expense/(Inc.) - - - - - -

Net income (reported) 6,851 4,938 3,545 2,181 2,155 2,958Adj. net income 6,851 4,812 3,807 2,410 2,155 2,958% chg 10.9 (29.8) (20.9) (36.7) (10.6) 37.2

(% of net sales) 16.9 11.3 8.3 5.5 3.9 4.6

Basic EPS (`) 16.6 12.0 8.6 5.3 5.2 7.2Fully diluted EPS (`) 16.6 12.0 8.6 5.3 5.2 7.2% chg 10.9 (27.9) (28.2) (38.5) (1.1) 37.2

7/28/2019 SAIL 4Q FY 2013

9/12


June 4, 2013 9

Balance sheet Consolidated

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E FY2015ESOURCES OF FUNDSEquity Share Capital 4,130 4,130 4,130 4,130 4,130 4,130Reserves & Surplus 29,613 32,939 35,681 37,125 38,315 40,308

Shareholders Funds 33,743 37,069 39,811 41,256 42,446 44,438Minority Interest 1 - - - - -

Total Loans 17,638 19,056 16,097 21,097 23,597 20,597Deferred Tax Liability 1,430 1,491 1,644 1,644 1,644 1,644

Other Long term liabilities - 1,097 1,090 1,090 1,090 1,090

Long Term Provisions - 3,192 3,513 3,513 3,513 3,513

Total Liabilities 52,812 61,905 62,156 68,601 72,291 71,283APPLICATION OF FUNDSGross Block 37,419 38,077 41,728 53,728 66,728 80,228

Less: Acc. Depreciation 22,310 23,018 24,601 26,006 27,762 30,044

Net Block 15,109 15,059 17,127 27,723 38,967 50,184Capital Work-in-Progress 15,309 22,075 28,049 24,549 17,049 6,549

Goodwill - - - - - -

Investments 45 684 685 685 685 685

Long Term loans and ad. - 1,692 2,003 2,003 2,003 2,003

Other non- current assets - 30 41 270 270 270

Current Assets 40,035 36,544 28,431 31,450 32,995 32,194Cash 22,719 17,480 6,416 9,419 9,811 5,582

Loans & Advances 3,736 1,246 1,386 1,386 1,386 1,386

Other 13,580 17,817 20,630 20,645 21,798 25,226

Current liabilities 17,686 14,178 14,181 18,079 19,679 20,602Net Current Assets 22,350 22,365 14,250 13,370 13,316 11,592Mis. Exp. not written off - - - - - -

Total Assets 52,812 61,905 62,156 68,601 72,291 71,283

7/28/2019 SAIL 4Q FY 2013

10/12


June 4, 2013 10

Cash flow statement Consolidated

Y/E March (` cr) FY2010 FY2011 FY2012 FY2013E FY2014E FY2015EProfit before tax 10,299 7,194 5,151 3,255 3,218 4,416

Depreciation 1,426 1,483 1,574 1,405 1,756 2,283Change in working capital 1,427 (3,263) (3,086) 3,883 446 (2,505)

Less: Other income (4,435) (1,043) (656) - - -

Direct taxes paid 3,619 2,215 1,456 1,075 1,063 1,458

Cash flow from operations 5,097 2,157 1,170 7,469 4,358 2,736(Inc.)/ Dec. in net fixed assets (10,371) (10,621) (9,487) (8,500) (5,500) (3,000)

(Inc.)/ Dec. in investments 1.5 (9) 5 - - -

(Inc.)/ Dec. in loans and adv. - - - - - -

Other income (2,112.9) (1,697) (1,948) - - -

Cash flow from investing (8,257) 8,933 (7,535) (8,500) (5,500) (3,000)Issue of equity 45 - 159 - - -

Inc./(Dec.) in loans 8,886 3,641 (3,086) 5,000 2,500 (3,000)

Dividend paid 1,402 1,395 1,152 965 965 965

Others 169.4 429 620 - - -

Cash flow from financing 7,359 1,818 4,699 4,035 1,535 (3,965)Inc./(Dec.) in cash 4,199 12,908 (11,064) 3,003 392 (4,229)

Opening cash bal. 18,522 22,439 17,480 6,416 9,419 9,812Closing cash bal. 22,721 17,480 6,416 9,419 9,812 5,583

7/28/2019 SAIL 4Q FY 2013

11/12


June 4, 2013 11

Key ratios

Y/E March FY2010 FY2011 FY2012 FY2013E FY2014E FY2015EValuation ratio (x)P/E (on FDEPS) 3.4 4.9 6.2 9.8 10.9 8.0P/CEPS 2.8 3.7 4.6 6.6 6.0 4.5

P/BV 0.7 0.6 0.6 0.6 0.6 0.5

Dividend yield (%) 5.8 4.6 1.8 3.5 3.5 3.5

EV/Sales 0.5 0.6 0.7 0.8 0.7 0.6

EV/EBITDA 2.0 3.2 5.3 7.0 7.1 5.1

EV/Total assets 0.3 0.4 0.5 0.5 0.5 0.5

Per share data (`)EPS (Basic) 16.6 11.7 9.2 5.8 5.2 7.2

EPS (fully diluted) 16.6 11.7 9.2 5.8 5.2 7.2

Cash EPS 20.0 15.6 12.4 8.7 9.5 12.7

DPS 3.3 2.6 1.0 2.0 2.0 2.0

Book value 81.7 89.7 96.4 99.9 102.8 107.6

DuPont analysisEBIT margin 19.6 14.3 9.9 7.9 6.2 8.0

Tax retention ratio (%) 66.5 68.2 68.8 67.0 67.0 67.0

Asset turnover (x) 1.7 1.2 1.0 0.9 1.0 1.1

RoIC (Post-tax) 22.1 12.2 7.0 4.6 4.1 5.9

Cost of debt (post tax) - 1.7 2.9 2.4 2.7 4.3

Leverage (x) - 0.0 0.2 0.3 0.3 0.3

Operating RoE 22.1 12.4 7.9 5.2 4.6 6.4

Returns (%)RoCE (Pre-tax) 17.8 11.1 7.8 5.8 5.2 7.7

Angel RoIC (pre-tax) 60.9 38.0 22.7 13.5 9.8 10.9

RoE 22.2 13.9 9.2 5.4 5.2 6.8

Turnover ratios (x)Asset turnover (gross block) 1.2 1.1 1.2 0.9 0.9 0.9

Inventory (days) 180 225 194 270 200 200

Receivables (days) 33 36 33 37 35 35

Payables (days) 122 119 103 98 93 90

WC cycle (days) 70 69 77 95 88 81

Solvency ratios (x)Net debt to equity (0.2) 0.0 0.2 0.3 0.3 0.3

Net debt to EBITDA (0.5) 0.1 1.5 2.2 2.5 1.9

Interest coverage 16.8 12.9 6.7 4.7 3.7 3.9

7/28/2019 SAIL 4Q FY 2013

12/12


June 4 2013 12

Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com

DISCLAIMERThis document is solely for the personal information of the recipient, and must not be singularly used as the basis of any investmentdecision. Nothing in this document should be construed as investment or financial advice. Each recipient of this document should make

such investigations as they deem necessary to arrive at an independent evaluation of an investment in the securities of the companies

referred to in this document (including the merits and risks involved), and should consult their own advisors to determine the merits and

risks of such an investment.

Angel Broking Pvt. Limited, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make

investment decisions that are inconsistent with or contradictory to the recommendations expressed herein. The views contained in this

document are those of the analyst, and the company may or may not subscribe to all the views expressed within.

Reports based on technical and derivative analysis center on studying charts of a stock's price movement, outstanding positions and

trading volume, as opposed to focusing on a company's fundamentals and, as such, may not match with a report on a company's

fundamentals.

The information in this document has been printed on the basis of publicly available information, internal data and other reliablesources believed to be true, but we do not represent that it is accurate or complete and it should not be relied on as such, as thisdocument is for general guidance only. Angel Broking Pvt. Limited or any of its affiliates/ group companies shall not be in any wayresponsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report .Angel Broking Pvt. Limited has not independently verified all the information contained within this document. Accordingly, we cannottestify, nor make any representation or warranty, express or implied, to the accuracy, contents or data contained within this document.While Angel Broking Pvt. Limited endeavours to update on a reasonable basis the information discussed in this material, there may beregulatory, compliance, or other reasons that prevent us from doing so.

This document is being supplied to you solely for your information, and its contents, information or data may not be reproduced,

redistributed or passed on, directly or indirectly.

Angel Broking Pvt. Limited and its affiliates may seek to provide or have engaged in providing corporate finance, investment banking

or other advisory services in a merger or specific transaction to the companies referred to in this report, as on the date of this report or

in the past.

Neither Angel Broking Pvt. Limited, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from

or in connection with the use of this information.

Note: Please refer to the important `Stock Holding Disclosure' report on the Angel website (Research Section). Also, please refer to thelatest update on respective stocks for the disclosure status in respect of those stocks. Angel Broking Pvt. Limited and its affiliates mayhave investment positions in the stocks recommended in this report.

Disclosure of Interest Statement SAIL

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to -15%) Sell (< -15%)

Note: We have not considered any Exposure below`

1 lakh for Angel, its Group companies and Directors

Documents

SAIL 4Q FY 2013