ELECTROSTEEL STEELS LIMITED UNLISTED SHARE
ELECTROSTEEL STEELS LIMITED (Now ESL STEEL Limited) is engaged in the business of Iron and Steel. The company supplies TMT Bars, Billets, Wire Roads, and Ductile Iron Pipe. The company also involves in business of Pig Iron and Steel & Iron Scrap product. It also produces Sinter, Metallurgical Coke, and Power for captive consumption.
The products of the company are supplied to automobile, construction, industrial machinery & equipment, and water infrastructure development. The company ‘s plant has a capacity of producing 1.5 million tonnes of iron and steel products and is located in Siyaljori Block, Bokaro District, Jharkhand. The company planning its expansion and has plans to double its existing capacity.
The equity shares of the company were listed on National Stock Exchange and Bombay Stock Exchange till December 2018.
ELECTROSTEEL STEELS LIMITED has been acquired by the Vedanta Star Limited (a subsidiary of Vedanta Limited) with effect from October, 2018. Vedanta Star Limited acquired the Electrosteel Steels Limited under the Insolvency and Bankruptcy Code 2016, in line with resolution from NCLT, Kolkata. Vedanta Star Limited acquired 90% shares of the company for a consideration amount of Rs. 5,320 Crore.
In just 10 months after acquisition, Electrosteel steels limited has seen improvement in its financial position with improvements in its operational efficiencies. These achievements were backed by strong emphasis on safety practices, and positioned the company to become a big player in India Steel Sector.
INCORPORATION DETAILS
CIN | U27310JH2006PLC012663 |
Category/Sub-category of the Company | Company Limited by Shares |
Address of the Registered office and contact details | 801, Uma Shanti Apartments, Kanke Road, Ranchi - 834 008 Jharkhand Email: esl.shares@vedanta.co.in |
Name, Address and Contact Details of Registrar and Transfer Agent, if any | Karvy Fintech Private Limited, Selenium, Tower B, Plot No- 31 & 32, Financial District, Nanakramguda, Serilingampally Hyderabad, Telangana 500032 |
BOARD OF DIRECTORS
Mr. Prasun Kumar Mukherjee (Independent Director)
Mr. Mahendra Singh Mehta (Independent Director)
Ms. Poovannan Sumathi (Director)
Mr. Navnath Laxman Vhatte (Whole Time Director)
PARTICULARS OF SUBSIDIARY AND ASSOCIATE COMPANIES
ELECTROSTEEL STEELS LIMITED does not have any subsidiary or associate company.
SHAREHOLDING PATTERN
(As on 31-03-2020)
S. No. | Shareholders’ Name | Number of shares | % of total Shares of the company |
1 | Vedanta Limited (Promoter) | 1,76,55,53,040 | 95.49% |
2 | Public Shareholding | 8,34,77,184 | 4.51% |
| Total | 1,84,90,30,224 | 100.00% |
INDUSTRY OUTLOOK
In 2019, India ranked second as the world’s largest steel producer with production of 111.2 million tonnes. The sustainable growth of steel sector can be attributed to the domestic availability of raw materials including iron ore and cost effective labour. Steel sector is one of the major contributors to the Indian economy. Steel Industry of India has been divided into three categories, Major producers, main producers, and secondary producers.
Production of crude steel and finished steel in India increased to 108.5 Million Tonnes and 101.03 Million Tonnes in FY 2020 respectively. Consumption of finished steel in India grew at a CAGR of 5.2% from FY 2016 to FY 2020. In FY 2020, India exported 8.24 million tonnes of finished steel and imported 6.69 Million tonnes of it. From April 2020 to February 2021, export of finished steel stood at 9.49 Million tonnes and import stood at 4.25 Million tonnes.
India is also a leading producer of Sponge Iron with a host of coal-based units, located in the mineral-rich States of the country. Over the years, the coal-based route has emerged as a key contributor and accounted for 82% of total sponge iron production in the country in 2020. Capacity in sponge iron making has also increased over the years and stood at 48.01 million tonne in 2020. India has been the world’s largest sponge iron producer every year since 2003.
India is also an important producer of Pig Iron. With setting up of several units in the private sector during the period of post-liberalisation, the imports have drastically been reduced and India has turned out to be a net exporter of Pig Iron. The private sector accounted for 87% of total production of Pig Iron in the country in 2020.
PROFIT & LOSS STATEMENT OF ELECTROSTEEL STEELS LIMITED (In Rs. Crores)
PARTICULARS | 2021 | 2020 | 2019 | 2018 |
Revenue from Operations | 4,771.43 | 4,377.51 | 4,951.55 | 3,532.83 |
EBITDA | 849.68 | 437.2 | 827.53 | 435.19 |
EBITDA margin | 17.81% | 9.99% | 16.71% | 12.32% |
Finance Cost | 376.53 | 384.14 | 322.46 | 789.96 |
Depreciation | 346.43 | 306.52 | 304.63 | 534.15 |
Other Income | 127.81 | 103.64 | 55.43 | 88.43 |
Exceptional items | 276.34 | 0 | 930.94 | -5,238.36 |
Profit Before Tax | -21.81 | -21.81 | 1,186.80 | -6,138.85 |
Total Tax | -2,753.83 | 0 | 0 | 0 |
Profit After Tax (PAT) | 2,732.01 | -21.81 | 1,186.80 | -6,138.85 |
EPS | 14.78 | -0.11 | 5.37 | -25.48 |
BALANCE SHEET OF ELECTROSTEEL STEELS LIMITED (In Rs. Crores)
PARTICULARS | 31st March 2021 | 31st March 2020 | 31st March 2019 |
ASSETS | |||
NON CURRENT ASSETS | |||
Tangible assets | 5,597.71 | 5,891.81 | 6,052.52 |
Intangible assets | 4.26 | 1.39 | 0.7 |
Financial assets | 0.54 | 0.52 | 0.7 |
Other financial assets | 10.58 | 5.06 | 1.46 |
Tax assets | 2,765.15 | 22.06 | 15.71 |
Other non-current assets | 2.33 | 0.28 | 55.66 |
TOTAL NON CURRENT ASSETS | 8,380.57 | 5,921.12 | 6,126.75 |
CURRENT ASSETS | |||
Inventories | 635.52 | 870.75 | 842.57 |
Financial assets | 1,664.16 | 1,226.62 | 858.85 |
Trade receivables | 102.90 | 171.73 | 233.13 |
Cash and Cash equivalents | 393.38 | 170.78 | 356.91 |
other current assets | 154.01 | 38.7 | 41.65 |
TOTAL CURRENT ASSETS | 2,949.97 | 2,478.57 | 2,333.10 |
TOTAL ASSETS | 11,330.55 | 8,399.69 | 8,459.85 |
EQUITY AND LIABILITIES | |||
EQUITY | |||
Equity share capital | 1,849.03 | 1,849.03 | 1,961.66 |
Other equity | 4,375.30 | 1,643.80 | 1,660.94 |
TOTAL EQUITY | 6,224.33 | 3,492.83 | 3,622.60 |
LIABILITIES | |||
NON CURRENT LIABILITIES | |||
Borrowings | 2,862.48 | 3,315.82 | 3,571.93 |
Provisions | 218.69 | 6.72 | 8.2 |
Lease liabilities | 4.78 | 4.52 | 0 |
TOTAL NON CURRENT LIABILITIES | 3,085.95 | 3,327.05 | 3,580.13 |
CURRENT LIABILITIES | |||
Financial liabilities | 780.08 | 563.51 | 299.97 |
Trade payables | 920.37 | 887.37 | 857.99 |
Provisions | 7.16 | 3.88 | 1.96 |
Other current liabilities | 312.65 | 125.04 | 97.21 |
TOTAL CURRENT LIABILITIES | 2,020.26 | 1,579.80 | 1,257.12 |
TOTAL LIABILITIES | 5,106.21 | 4,906.86 | 4,837.25 |
TOTAL EQUITY AND LIABILITIES | 11,330.55 | 8,399.69 | 8,459.85 |
DIVIDEND HISTORY
PARTICULARS | 2021 | 2020 | 2019 | 2018 |
Dividend (final + interim) (In Rs.) | Nil | Nil | Nil | Nil |
Retained Earnings (Consolidated) (In Rs. Crores) | -5,268.21 | -7,999.71 | -7,977.38 | -9,156.79 |
PERFORMANCE OF THE COMPANY
Revenue from Operations of the company increased by 9% from Rs. 4,377.51 Crore in FY 2020 to Rs. 4,77143 Crore in FY 2021.
EBITDA of the company increased significantly by 94.35% from Rs. 437.2 Crore in FY 2020 to Rs. 849.68 Crore in FY 2021. EBITDA margins of the company increased from 9.99% in FY 2020 to 17.81% in FY 2020.
The company incurred a loss of Rs. 21.81 Crore in FY 2020. However, the company has turned profitable in FY 2021 and has earned a profit of Rs. 2,732.01 Crore.
The current ratio of the company as of 31st March 2021 was 1.46.
Debt to Equity ratio of the company as of 31st March 2021 was 0.45.
The book value of the company as of 31st March 2021 was Rs. 33.66.
The company has not given any dividend from the past three years.
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