NSE Symbol: SAIL | BSE Code: 500113
In January 2018, SAIL share price opened at around Rs.92 and reached Rs.100 by the middle of the month, but had a steep drop of Rs.6 in a single day in January. It fluctuated between Rs.90 and Rs.97 for the rest of the month. However, it dropped below Rs.90 on the last day of January.
In February, the stock fluctuated a lot, reaching a peak of Rs.95 as well as touching down a low of Rs.83.
It declined rapidly in March, toppling into a freefall to a low of about Rs.69. It slightly gained after and went up to about Rs.72 and closed for March 2018 at about Rs.70.
In April 2018, SAIL share price saw some gain. It touched Rs.80 but did not sustain it for the rest of the month. It closed at around Rs.77.
May was an unfortunate month in which the stock prices even touched a low of around Rs.68. A slight rise in price in the last few days of May ensured the close at Rs.75.
The stock gained steadily in June and rose up to Rs.89. However, it was not sustained. The stock declined again over the course of the remainder of the month and closed the quarter at about Rs.83.
Steel Authority of India Limited (SAIL) is a government-owned steel producing 'Maharatna' company in India. It is one of the largest public sector undertakings in the country. It is considered to be the world's 24th largest steel producer in the world. SAIL has multiple joint ventures with various companies around the world. The Indian government owns about 75% of the company's equity and thus retains voting control of SAIL.
Hindustan Steel Limited (HSL) was founded in 1954. Bokaro Steel Limited was established a decade later in 1964. These two companies, in collaboration with a few more companies, had been running all the steel production in the country, managed by the Ministry of Steel and Mines. According to the suggestion of the Ministry, a single company was created as a holding company to manage the inputs and outputs of each of these steel plants under one umbrella. Steel Authority of India Limited was thus incorporated in 1973 with an authorized capital of Rs.2000 crore, which was to manage 5 integrated steel plants across India. As reported in March 2018, this company has a market capitalization of over Rs.30,000 crore.
SAIL share price were as low as Rs.6.50 in October 2002, which reached a historic height in December 2007, when it reached Rs.280 per share.
A year later, in November 2008, amidst the infamous economic recession, SAIL share price came down to around Rs.66.50.
SAIL quickly recovered from this huge hit and closed the financial year 2009-2010 at Rs.252 per share.
Since then, the share prices of SAIL has fluctuated but has mostly been on a downward slope.
In January 2016, the share prices opened at around Rs.48, which shot up above Rs.50 mark by the fifth day of the month and went below Rs.50 again by the end of the first week. It did not recover and continued the trend of a steady decline, which touched a low of around Rs.41 by the third week of January. The stock prices, which opened at around Rs.42 in February of that year, dropped again to Rs.34 in the same month. The onset of March witnessed a strong rise in the SAIL share price as it crossed the Rs.40 mark to rise to Rs.45 but falling to 43 by the end of the quarter.
In the 1st quarter of FY 2016-17, the stock prices of SAIL fluctuated between Rs.39 and Rs.45.
July 2016 marked an upward trend of the share prices, which reached Rs.50 by mid-July and fluctuated between Rs.46 and Rs.53 in throughout the quarter.
The 3rd quarter of that FY opened at about Rs.48 and remained steadily below Rs.50 for the most part and closed at Rs.49 in December 2017.
January 2017 reflected well for SAIL as the stock prices opened at Rs.50 and reached a high of Rs.64. It remained around Rs.60 for the most of February. SAIL share price in March 2017 moved between Rs.63 and Rs.59 and closed the FY at Rs.61.
The 1st quarter of FY 2017-18 culminated in a high of around Rs.67. The stock prices fluctuated in April, but never went below Rs.59. In May, the prices fluctuated between Rs.59 and Rs.62 and went down to Rs.56 during the end of the month. It remained between Rs.55 and Rs.58 in June 2017 and closed at Rs.58.
July 2017 was a flourishing period and the stock prices remained above Rs.60. August witnessed a steep fall from Rs.63 to Rs.56 and closed at Rs.60. September mostly had the share prices over Rs.60 but it dropped by the end of the month, closing the quarter at about Rs.53.
Although the share prices in October 2017 remained between Rs.50 to Rs.60 on an average, it hit a high of about Rs.79 by the end of the month. It went up to Rs.82 in November. The stock closed for November at around Rs.76. SAIL share price closed at Rs.92 in the 3rd quarter.
In the first quarter of 2018-19, the trends show that the revenue from operations of SAIL dropped to Rs.15907.19 cr in the current quarter as compared to Rs.17037.83 cr in the previous quarter.
The other incomes of SAIL also dropped from Rs.227.03 cr in the previous quarter to Rs.97.76 cr in the current quarter.
SAIL's total income decreased to Rs.16004.95 cr in the current quarter from Rs.17264.86 cr in the previous one.
The company's total expenses decreased from Rs.16455.94 cr in the previous quarter to Rs.14899.74 cr in the current quarter.
The profit before tax was Rs.1105.21 cr in the current quarter while it was Rs.808.92 cr in the previous one.
The total comprehensive income for the current quarter decreased to Rs.540.81 crore in the current quarter from Rs.992.41 crore in the previous quarter.
The annual report released by the company states that:
The gross sales of SAIL grew from Rs.49180 cr in the previous financial year to Rs.58297 cr in the current one.
Net sales of SAIL also grew to Rs.56893 cr from Rs.43866 in the previous financial year.
The earnings before depreciation, tax and interest for the previous FY was Rs.672 cr whereas it was Rs.5184 cr in the current one, indicating a great improvement in performance.
SAIL reported a loss of Rs.2833 cr in FY17 and a loss of Rs.482 cr in FY18, which indicates that SAIL found ways to minimize their loss.
The net worth of SAIL reduced to Rs.35714 cr in FY18 from Rs.36009 cr in FY17.
The net fixed assets of SAIL grew from Rs.50285 cr in FY17 to Rs.58612 cr in FY18.
The SAIL share price increased from Rs.61.20 at the end of FY17 to Rs.70.20 at the end of FY18.
The quarter ending 31 March 2018 indicated the following:
SAIL's revenue from operations increased to Rs.17037.83 cr from Rs.15323.65 cr in the previous quarter.
All other incomes of SAIL increased from Rs.119.48 cr in the previous quarter to Rs.227.03 cr.
The total income of SAIL increased from Rs.15443.13 cr in the previous quarter to Rs.17264.86 cr.
The total expenses of SAIL rose to Rs.16455 cr from Rs.15317.61 cr in the previous quarter.
The total comprehensive income of SAIL in the quarter ending in March 2018 was Rs.992.41 cr as compared to Rs.47.48 cr in the previous one.
The quarter ending December 2017 indicated the following:
By the end of December 2017, SAIL's total income in the third quarter of FY 2017–2018 was Rs.15443.13 cr, which exceeded Rs.13666.05 cr, the total income in the previous quarter. The same quarter of the previous financial year had reported a total income of Rs.12688.47 cr. Thus, SAIL's total income grew by Rs.2754.66.
Total expenses of SAIL also increased from Rs.14108.84 cr in the second quarter of FY 2017–2018 to Rs.15317.51 cr in the third quarter. The previous FY had reported total expenses of Rs.13943.18 in the third quarter.
The profit before tax for the third quarter of FY 2017–2018 was Rs.82.27 cr and SAIL had reported a loss of Rs.740.33 cr in the previous quarter. The third quarter of the previous FY also had a loss of Rs.1253.57 cr.
The net profit of SAIL in the third quarter of FY 2017–2018 was Rs.43.16 cr as compared to a gigantic loss of Rs.539.06 cr in the previous quarter and a net loss of Rs.794.84 in the same quarter of the previous FY. Moreover, SAIL had been making huge losses for nearly ten quarters before showing a slight profit in the third quarter of FY 2017–2018.