Investor Presentation

STEEL AUTHORITY OF INDIA LIMITED RESULTS PRESENTATION Q2 and H1 FY’27 SNAPSHOT H1 FY’27 Mining Iron Ore: 19.547 MT Limestone: 0.534 MT Dolomite: 0.241 MT Production Hot Metal: 10.203 MT Crude Steel: 9.605 MT Saleable Steel: 8.390 MT Sales & Marketing Domestic Sales: 9.180 MT Exports: 0.146 MT Total Sales: 9.326 MT Financials Turnover: Rs. 57776 crore Revenue From Operations: Rs. 58243 crore Net Worth: Rs. 60329 crore Profitability EBITDA: Rs. 8917 crore PBT: Rs. 4515 crore PAT: Rs. 3410 crore Ratios EPS: 8.25 EBITDA Margin: 15.43% Debt Equity (IndAS): 0.52 Funds Debt (IndAS): Rs. 31464 crore DSCR: 2.64 Interest Coverage Ratio: 4.89 STEEL AUTHORITY OF INDIA LIMITED Economic Scenario WORLD ECONOMIC SCENARIO Growth Rates ( in %) World Advanced Economies Emerging & Developing Economies 4.4 4.3 4.5 4.4 3.5 3.3 3.3 3.5 3.1 3.4 2.0 2.1 1.7 1.8 1.8 Projections remain lower than Fighting Inflation, Slowdown in -2.0 2025 performance though there Advanced Economies and -3.1 Is improvement in projections Recovery Post 1st Russia-Ukraine War, recovery over earlier projections. Phase of COVID19 has been gradual thereafter. -4.5 2020 (E) 2021 (E) 2022 (E) 2023 (E) 2024 (E) 2025 (E) 2026 (P) 2027 (P) IMF, in the World Economic Outlook released during Oct’26, has increased the growth projections for 2026 over the projections released during Jul’26. The overall estimates for global economy in 2027 are significantly better than projections of 2026 due to significant improvement in the projections for the Emerging & Developing Economies and despite projections being lower for the Advanced Economies. The major factor impacting the projections for current year 2026 has been the prevailing scenario in the middle east causing the disruption in the energy sector and the on the other hand, investment boon in the AI induced impetus to global activity. SOURCE: IMF E= Estimates P= Projections INDIAN ECONOMIC SCENARIO GDP Growth % (2022-23 series) SOURCE: MOSPI, GOI Constant Prices Current Prices Quarterly GDP 11.0 7.3 7.2 7.8 10.5 11.3 11.1 11.3 10.4 9.7 10.3 9.0 8.5 8.1 8.4 8.7 9.2 6.6 7.5 7.7 7.4 7.5 7.3 7.4 6.6 6.9 8.1 7.7 7.8 2023-24 2024-25 (FRE*) 2025-26 (SAE^) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 *FRE: First Revised Estimates ^SAE: Second Advance Estimates FY24 FY24 FY24 FY24 FY25 FY25 FY25 FY25 FY26 FY26 FY26 FY26 FY27 Ministry of Statistics & Programme Implementation has updated the reporting of GDP from 2011-12 series to 2022-23 series. The Annual Estimates at constant prices for FY 2025-26 stand at 7.8% as against 7.2% for FY 2024-25 whereas on current prices, the estimates for FY 2025-26 stand at 8.9% down from 9.7% for FY 2024-25. The quarterly estimates for Q1 FY 2026-27 have been higher than the expectation leading to improvement in the forecast for annual data by almost major agencies detailed as follows: Source Growth Projection Remarks 7.0% (CY26) & The projections for CY26 and CY27 have been significantly improved from the 6.4% IMF (Oct’26) 7.0% (CY27) and 6.7% projected respectively in the WEO published in July’26. The projection for FY27 has been improved to 7.1% from the earlier level of 6.6% World Bank 7.1% (FY27) (April’26). The Global Economic Prospects published in June’26 projected growth in (Oct’26) FY’28 and FY’29 at 7.2% and 7.0% respectively. The projection has been improved from the earlier level of 6.7% (Aug’26). The RBI (Oct’26) 7.1% (FY27) quarterly projections for Q2, Q3 and Q4 FY27 and Q1FY28 stand at 7.2%, 6.9%, 6.8% and 7.1% respectively. INDIAN ECONOMIC SCENARIO IIP Growth % at Constant (2022-23) Prices 180.0 170.0 160.0 150.0 140.0 130.0 120.0 110.0 100.0 Primary Goods Capital Goods 90.0 Intermediate Goods Infrastructure Goods Consumer Durables Consumer Non-Durables 80.0 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 The IIP has shown improvement in in all six categories during first five months of FY2026-27 as against FY2025- 26. The growth has been driven majorly by Intermediate Good, Capital Goods and Consumer Non-durables. SOURCE: MOSPI, GOI STEEL AUTHORITY OF INDIA LIMITED Steel Scenario WORLD STEEL SCENARIO Crude Steel Production (MT) World China RoW 1963 1883 1889 1904 1887 1850 1234 1225 1065 1035 1018 1029 1005 927 961 871 875 882 889 673 652 2020 2021 2022 2023 2024 2025 Jan-Aug 2025 Jan-Aug 2026 Steel Production as been coming down every year barring 2023 where marginal increase was witnessed. The first 8 months of the current year have also seen the production falling by 0.7%% over CPLY with China registering degrowth of 3.1% as against increase of 2.2% in production in Rest of the World (RoW). • Despite reduction in its own production, China continues to dominate the global production numbers. In fact, the share of China in the global production has been consistently more than 50% of the global production. The production by China stood at ~53.2% of global production during Jan-Aug CY’26. The production in China during the period has, however, been at lower by 3.1% over CPLY. • Among the other major producers, Vietnam (29.1%), Turkey (6.8%), Germany (6.3%), India (6.0%), USA (5.5%) and South Korea (2.8%) have registered positive growth in production during Jan-Aug CY’26 over CPLY. On the other hand, countries like Russia (-5.1%), Brazil (-1.9%) and Japan (-0.2%) have registered negative growth during the period. SOURCE: World Steel Association (WSA) WORLD STEEL SCENARIO Apparent Steel Consumption (MT) 1839 1788 1783 1767 1751 1724 1722 1752 2020 2021 2022 2023 2024 2025 2026(F) 2027(F) As per the Short Range Outlook by WSA in Oct’26, the decline in the consumption continues with projection as the demand is expected to further contract through marginally in CY 2026 by 0.1%. However, the demand growth is expected at 1.7% during CY 2027. Short Range Outlook, Oct’26: • Global steel demand is expected to decrease by 0.1% in CY 2026 and increase by 1.7% in CY 2027. • Demand growth in China is expected to decline by 2% in CY 2026 and by 1% in CY 2027. • Global demand excluding China is expected to grow 1.5% in CY 2026 and 4.0% in CY 2027. • Amongst the major steel consuming nations, demand growth in CY 2026 is projected to be highest in Vietnam (12%) followed by India (7.9%) and Germany (3.8%). During CY 2027, demand growth will be led by India (8.0%), Germany (6.0%) and Vietnam (4.0%). SOURCE: World Steel Association (WSA) INTERNATIONAL PRICE TRENDS 280 Coal FOB Australia (USD/t) 125 Iron Ore CFR China (USD/t) 260 120 240 115 220 110 200 105 180 100 160 95 140 90 Lumps Fines Australia Origin Fines Brazil Origin 120 HCC PCI 85 100 80 560 Hot Rolled (USD/t) 640 Cold Rolled (USD/t) FOB Black Sea FOB China CFR Europe FOB Black Sea FOB China 400 500 SOURCE: Big Mint INDIAN STEEL SCENARIO Crude Steel Production (mtpa) 169.2 152.2 144.3 127.2 120.0 109.1 103.5 82.7 85.1 40.8 42.1 43.0 FY'20 FY'21 FY'22 FY'23 FY'24 FY'25 FY'26 FY'26 FY'27 Q2 FY'26 Q1 FY'27 Q2 FY'27 (H1) (H1) Finished Steel Consumption (mtpa) 164.2 152.1 136.3 119.9 105.8 100.2 94.9 84.9 79.0 40.6 41.6 43.4 FY'20 FY'21 FY'22 FY'23 FY'24 FY'25 FY'26 FY'26 FY'27 Q2 FY'26 Q1 FY'27 Q2 FY'27 (H1) (H1) The production of crude steel in India during H1 FY’27 has grown by 3% over CPLY and during Q2 FY’27, the same has grown by 5% over CPLY and 2% over previous quarter. At the same time, consumption has grown by ~8% during H1 over CPLY. During Q2 FY’27, the same has grown by 7% over CPLY and 4% over previous quarter. Source: JPC DOMESTIC PRICE TREND All figures in Rs. thousand/tonne s 14 Fines/Lumps/Pellets 50 Semis/Ingot d d 48 a 12 a 46 u u 44 o 10 o h h 42 T 8 T 6 38 Lumps 63% Fe, Odisha Index Fines 63% Fe, Odisha Index 2 Billets Ex-Raipur Ingot DAP-Mandi Pellets 63% Fe, Exw-Raipur 32 0 30 80 Flats 70 Longs n 75 d a HRC Ex-Delhi CRC Ex-Delhi n 65 s 70 a o 65 u 60 T 60 h T 55 Wire Rod Ex-Jharkhand Rebar Ex-Delhi SOURCE: Big Mint STEEL AUTHORITY OF INDI [Showing first 8,000 characters — download PDF for full document]