ESL Steel limited Unlisted Shares
Electrosteel Steels Ltd has set up 2.51 Million Ton Per Annum (MTPA) Greenfield Integrated Steel Plant near Siyaljori village, in the Bokaro district of Jharkhand. It primarily consist of a Sinter Plant, Coke Oven, Blast Furnace, Basic Oxygen Furnace, Billet Caster, Wire Rod Mill, Bar Mill and Power Plant. ESL has established excellence at every stage of production by bringing international expertise and solutions from reputed manufacturers. Along with the latest technology, the plant operates in synchronization with the highest ecological standards.
The Company’s product range includes Pig Iron, Billets, TMT Bars, Wire Rods and Ductile Iron Pipes.
FINANCIAL SUMMARY/HIGHLIGHTS AND BUSINESS PERFORMANCE
| Amount ( ₹ in Lakhs) (Except otherwise stated) |
||
| Particular | Year Ended | Year Ended |
| 31 Mar, 2019 | 31 Mar, 2020 | |
| Revenue from operation | 495,154.94 | 4,37,750.81 |
| Other Income | 5,542.73 | 10,364.45 |
| Finance Cost | 32,246.02 | 38,413.55 |
| Exceptional Item | 93,093.53 | – |
| Profit /(Loss) before exceptional items and tax | 25,586.76 | (2,180.92) |
| Profit/(Loss) after tax | 1,18,680.29 | (2,180.92) |
| EPS (Basic and diluted) | 5.37 | (0.11) |
*Figures for the year ended 31st March, 2019 have been re-stated pursuant to Scheme of Amalgamation of Vedanta Star Limited (VSL) with Electrosteel Steels Limited (ESL)
The Fiscal year 2019 has been transformational year for the Company, where significant progress has been made in various fronts such as enhanced capacity utilisation, restarting of Blast furnace #3, improvement in cost through commercial and operational excellence, enhanced production of value added product (VAP) etc. These accomplishments set up strong momentum to aspire for robust growth for Fiscal Year 2020.
In June 2018, Vedanta Limited acquired a 90% stake in Company, a primary producer of steel and downstream value added products. The Company was acquired under the Insolvency and Bankruptcy Code (IBC) 2016 in line with Resolution Plan approved by Hon’ble National Company Law Tribunal (NCLT), Kolkata Bench. Subsequent to the acquisition, Vedanta Limited, through its wholly owned subsidiary, Vedanta Star Limited, took over control and management of Electrosteel Steels Limited and acquired 90% shares of the Company.
FY2019 recorded annual steel production at 1.2 million tonnes up 17% on year to year basis. The Company achieved hot metal production run rate of c.1.5mtpa in FY2019. The production ramped up substantially and other operational efficiencies has resulted in record EBITDA margin. Under Vedanta’s management, the business has seen significant operational improvements leading to healthy financial position.
These achievements, underpinned by a strong emphasis on safety practices, position the Company well to become a serious player in the Indian steel sector.
- Annual Report for the year ended March 31, 2019
- Annual Report for the year ended March 31, 2019
- Annual Report for the year ended March 31, 2018
- Annual Report for the year ended March 31, 2017
- Annual Report for the year ended March 31, 2016
ESL Steel Limited Delisted Share- Company Overview
ESL Steel Limited Formerly known as Electrosteel Steels Limited is a fully integrated iron and steel manufacturing unit.
It is a public limited company in India having its registered office at, Siyaljori, P.O. Jogidih, O.P. Bangaria, P.S. Chandankyari, Bokaro, Jharkhand and is engaged in the manufacture and supply of Billets, TMT Bars, Wire Rods and Ductile Iron(DI) Pipes and also deals in Pig Iron and Iron and Steel Scrap products generated while manufacturing these products.
ESL Steel share are available on unlisted market . Electrosteel share price used to change regularly. ESL Steel share price keeps fluctuating on daily basis.
It also produces Metallurgical Coke, Sinter and Power for captive consumption. The Company caters to the needs of construction, automobile, industrial machinery and equipments and water Infrastructure development. The company planning its expansion and has plans to double its existing capacity.
The Holding Company of ESL Steel Ltd is Vedanta Limited (VEDL).
ESL Steel Price Delisted Share Details as of March 31, 2022
| ESL Steel Outstanding Shares: | 1,849,030,224 |
| Face Value of ESL Steel Unlisted Share: | Rs. 10 Per Equity Share |
| ISIN of ESL Steel Unlisted Share: | INE481K01021 |
| Lot Size of ESL Steel Unlisted Share: | 100 Shares |
| Electrosteel share price: | Best in Industry |
| PAN Number of ESL Steel: | AABCE6875H |
| Date of Delisting of ESL Steel: | 20-Dec-18 |
| Rate of Delisting of ESL Steel: | Rs. 31.11 |
| Reason of Delisting of ESL Steel: | Under section 31 of the Insolvency and Bankruptcy Code 2016 read with sub-regulation (3)(a) of regulation 3 of SEBI delisting Reg 2009 |
Incorporation Details of ESL Steel Limited
ESL Steel CIN Number |
U27310JH2006PLC012663 | |
ESL Steel Registration Date |
20-Dec-2006 | |
Category / Sub-Category of ESL Steel |
Company Limited by Shares | |
ESL Steel Registered Office Address |
ESL Steel Limited,
Vill. Siyaljori, Post – Jogidih, O.P. – Bangaria, P.S. – Chandankyari, Bokaro – 828303, Jharkhand |
|
ESL Steel Registrar & Transfer Agent Address and Contact Details |
Kfin Technologies Limited,
Selenium, Tower B, Plot No- 31 & 32, Financial District, Nanakramguda, Serilingampally Hyderabad Tel. :+ 91-40-67162222 |
|
ESL Steel Limited Board of Directors
Mr. Mahendra Singh Mehta, Non-Executive Independent Director
Mr. Prasun Kumar Mukherjee, Non-Executive Independent Director
Mr. Navnath Laxman Vhatte, Chief Executive Officer & Whole Time Director
Ms. Poovannan Sumathi, Non-Executive Director
ESL Steel Particulars of Subsidiary, Associate and Holding Companies
| Name of the Company | Holding/Subsidiary /Associate | % of Shares Held |
| Vedanta Limited (VEDL) | Holding | 95.49% |
ESL Steel Limited Shareholding Pattern (As on 31-03-2022)
| 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% |
ESL Steel Industry Outlook
In the past 10–12 years, India’s steel sector has expanded significantly. Production has increased by 75% since 2008, while domestic steel demand has increased by almost 80%.
In FY22, the production of crude steel and finished steel stood at 133.596 MT and 120.01 MT, respectively. The consumption of finished steel stood at 105.751 MT in FY22. In April 2022, India’s finished steel consumption stood at 9.072 MT. In April-July 2022, the production of crude steel and finished steel stood at 40.95 MT and 38.55 MT respectively.
In FY22, exports and imports of finished steel stood at 13.49 MT and 4.67 MT, respectively. In FY22, India’s export rose by 25.1% YoY, compared with 2021. In FY21, India exported 9.49 MT of finished steel. In July 2022 exports of finished steel stood at 3.80 lakh MT.
The annual production of steel is anticipated to exceed 300 million tonnes by 2030–2031. By 2030–31, crude steel production is projected to reach 255 million tonnes at 85% capacity utilisation achieving 230 million tonnes of finished steel production, assuming a 10% yield loss or a 90% conversion ratio for the conversion of raw steel to finished steel. With net exports of 24 million tonnes, consumption is expected to reach 206 million tonnes by the years 2030–1931. As a result, it is anticipated that per-person steel consumption will grow to 160 kg.
ESL Steel Limited Balance Sheet (Rs in Lakhs)
|
Particulars |
31-03-2024 |
31-03-2023 |
|
ASSETS |
|
|
|
Non-current assets |
|
|
|
Property, Plant and Equipment |
4,43,749.07 |
4,48,552.06 |
|
Capital work-in-progress |
1,70,018.23 |
1,29,895.94 |
|
Other Intangible Assets |
42,128.38 |
46,816.63 |
|
Other Financial Assets |
9,542.42 |
9,323.62 |
|
Non-Current Tax Assets (net) |
2,179.45 |
2,461.57 |
|
Deferred Tax Assets (net) |
2,23,096.73 |
2,54,892.24 |
|
Other Non-Current Assets |
7,225.19 |
2,909.06 |
|
Current assets |
|
|
|
Inventories |
1,06,339.14 |
1,39,439.34 |
|
Investments |
2,001.50 |
2,003.39 |
|
Trade Receivables |
11,070.28 |
24,862.95 |
|
Cash and Cash Equivalents |
15,950.80 |
3,503.65 |
|
Bank Balances other than (iii) above |
11,397.04 |
15,841.10 |
|
Other Financial Assets |
2,637.11 |
1,491.20 |
|
Other Current Assets |
33,459.67 |
42,589.13 |
|
TOTAL ASSETS |
10,80,795.01 |
11,24,581.88 |
|
EQUITY AND LIABILITIES |
|
|
|
Equity Share Capital |
1,84,903.02 |
1,84,903.02 |
|
Other Equity |
2,74,965.34 |
3,71,803.41 |
|
Non-current liabilities |
|
|
|
Borrowings |
1,48,895.66 |
1,94,548.75 |
|
Lease Liabilities |
2,503.15 |
1,468.21 |
|
Provisions |
22,333.99 |
21,937.59 |
|
Current liabilities |
|
|
|
Borrowings |
80,432.66 |
46,041.60 |
|
Lease Liabilities |
21,637.57 |
17,534.16 |
|
Operational Buyers’ Credit / Suppliers’ Credit |
86,364.88 |
1,27,774.84 |
|
Trade Payables |
|
|
|
Total Outstanding dues of micro and small enterprises |
7,883.23 |
6,508.12 |
|
Total Outstanding dues of creditors other than micro and small enterprises |
57,335.35 |
60,892.72 |
|
Other Financial Liabilities |
24,652.49 |
13,072.41 |
|
Other Current Liabilities |
1,68,721.39 |
77,907.41 |
|
Provisions |
166.28 |
189.64 |
|
TOTAL EQUITY AND LIABILITIES |
10,80,795.01 |
11,24,581.88 |
ESL Steel Limited Profit & Loss Statement (Rs in Lakhs)
| Particulars | 31-03-2024 | 31-03-2023 |
| Sale of Products | 8,30,046.22 | 7,85,181.04 |
| Other Operating Income | 20,765.56 | 12,576.88 |
| Other Income | 11,052.14 | 7,470.22 |
| Total Income | 8,61,863.92 | 8,05,228.14 |
| Cost of Materials Consumed | 4,38,598.59 | 5,02,292.24 |
| Changes in Inventories of Finished/ Semi-Finished Goods and Stock-in-Trade | 14,808.97 | -40,542.28 |
| Employee Benefits Expense | 22,589.61 | 21,326.21 |
| Finance Costs | 43,161.44 | 37,605.47 |
| Depreciation and Amortisation Expense | 46,300.78 | 44,375.30 |
| Other Expenses | 3,58,742.98 | 2,87,248.45 |
| Total Expenses | 9,24,202.37 | 8,52,305.39 |
| Profit/ (Loss) before exceptional items and tax | -62,338.45 | -47,077.25 |
| Exceptional Items | -2,579.22 | – |
| Profit/ (loss) before tax | -64,917.67 | -47,077.25 |
| Deferred Tax | 31,839.15 | 8,713.34 |
| Profit/ (loss) for the year | -96,756.82 | -55,790.59 |
| Other Comprehensive Income: | ||
| Items that will not be reclassified to profit or loss | -124.89 | -423.96 |
| Income tax relating to items that will not be reclassified to profit or loss | 43.64 | 148.15 |
| Other Comprehensive Income (net of taxes) | -81.25 | -275.81 |
| Total Comprehensive Income for the year (comprising of Profit/(Loss) and Other Comprehensive Income for the year) | -96,838.07 | -56,066.40 |
| Earning per Equity Share [Face value of Rs. 10 each]: | ||
| Basic and Diluted | -5.23 | -3.02 |
ESL Steel Limited Cash Flow Statement (Rs in Lakhs)
| Particulars | 31-03-2024 | 31-03-2023 |
| Cash flow from Operating Activities | ||
| Profit/(Loss) before tax | -64,917.67 | -47,077.25 |
| Adjustments | ||
| Depreciation and amortization expenses | 46,300.78 | 44,375.30 |
| Loss/(profit) on sale/discard of fixed assets | 307.88 | 571.1 |
| Sundry Credit balances/Provision no longer required written back | -7,019.29 | -2,506.72 |
| Sundry Balances written-off | 1,085.72 | 782.97 |
| Unrealised (gain)/ Loss on foreign currency translation and transaction | -457.47 | 62.6 |
| Net gain/(loss) on Derivative Instruments on fair valuation through profit and loss | -15.24 | -849.67 |
| Interest Income | -2,196.54 | -2,217.47 |
| Net Gain/(loss) on Current Investments on Fair Valuation through profit and loss | -137.37 | -341.78 |
| Impairment Allowance for doubtful debts, Advances and deposits | 117.86 | 3.35 |
| Finance Cost | 43,161.44 | 37,605.47 |
| Operating profit/(loss) before Working Capital Changes | 16,230.10 | 30,407.90 |
| Movements in working capital : | ||
| Decrease/(Increase) in Inventories | 33,100.17 | -21,513.77 |
| (Decrease)/Increase in Trade Payables, Other financial/Non-Financial liabilities and Provisions | -12,534.62 | 1,03,755.98 |
| Decrease/(Increase) in Trade Receivables (net of advances received) | 94,621.00 | -7,919.62 |
| Decrease/(increase) in loans and advances, Other financial/non-financial asets and other assets | -5,282.35 | -8,574.59 |
| Cash generated from / (used in) operations | 1,26,134.30 | 96,155.90 |
| Direct taxes paid (net of refunds) | 282.12 | -831.51 |
| Net Cash flow generated / (used in) Operating Activities | 1,26,416.42 | 95,324.39 |
| Cash flow from Investing Activities | ||
| Purchase of Property, Plant and Equipments (other than ROU Assets) including intangible assets and movement in Capital Work in Progress | -47,423.75 | -59,230.11 |
| Proceeds from disposal of Property, Plant and Equipments | 30.05 | 22.73 |
| Movement in Fixed Deposits (having original maturity of more than three months) | 4,382.62 | 37,101.76 |
| Investment in mutual funds | -1,31,693.43 | -2,38,176.15 |
| Sale Proceeds on disposal of mutual funds | 1,31,832.69 | 2,53,846.88 |
| Interest received | 2,159.62 | 2,573.81 |
| Net Cash flow generated / (used in) Investing Activities | -40,712.20 | -3,861.08 |
| Cash flow from Financing Activities | ||
| Repayment of long-term borrowings | -46,041.60 | -46,041.60 |
| Proceeds/(Repayment) from short-term borrowings (net) | 34,391.06 | – |
| Payment against Lease Liabilities (including cost of land for afforestation) | -21,666.36 | -10,240.47 |
| Interest and other borrowing cost paid | -39,940.17 | -38,088.62 |
| Net Cash flow generated / (used in) Financing Activities | -73,257.07 | -94,370.69 |
| Net Increase/(Decrease) in cash and cash equivalents | 12,447.15 | -2,907.38 |
| Cash and cash equivalents at the beginning of the year | 3,503.65 | 6,411.03 |
| Cash and cash equivalents at the end of the year | 15,950.80 | 3,503.65 |
Here is a summary of the Cash Flow Statement for the years 2024 and 2023:
Cash Flow from Operating Activities:
Profit/(Loss) before tax:
31-03-2024: ₹ -64,917.67
31-03-2023: ₹ -47,077.25
This represents the company’s profit or loss before accounting for tax expenses.
Adjustments to Profit/(Loss) before tax:
Depreciation and amortization expenses: These are non-cash expenses that reflect the wear and tear or the allocation of intangible assets over time.
Loss/(profit) on sale/discard of fixed assets: Indicates the gain or loss incurred from selling or disposing of fixed assets.
Sundry Credit balances/Provision no longer required written back: Adjustments made for credits or provisions that are no longer necessary.
Sundry Balances written-off: Amounts written off from the books due to irrecoverable balances.
Unrealized (gain)/ Loss on foreign currency translation and transaction: Reflects gains or losses due to exchange rate changes.
Net gain/(loss) on Derivative Instruments on fair valuation through profit and loss: Gains or losses from derivative contracts valued at fair market prices.
Interest Income: Income earned from interest on investments.
Net Gain/(loss) on Current Investments on Fair Valuation through profit and loss: Gains or losses from current investments adjusted to fair market value.
Impairment Allowance for doubtful debts, Advances and deposits: Provision made for potential losses on debts or advances deemed doubtful.
Operating profit/(loss) before Working Capital Changes:
Represents the profit or loss generated from the core operations of the business before considering changes in working capital.
Movements in working capital:
Decrease/(Increase) in Inventories: Change in the value of inventory held by the company.
(Decrease)/Increase in Trade Payables, Other financial/non-financial liabilities and Provisions: Change in the amounts owed to suppliers and other liabilities.
Decrease/(Increase) in Trade Receivables (net of advances received): Change in amounts owed to the company by customers after adjusting for advances received.
Decrease/(increase) in loans and advances, Other financial/non-financial assets and other assets: Changes in loans given, advances made, and other assets held.
Direct taxes paid (net of refunds):
Taxes paid or refunded directly related to operating activities.
Net Cash flow generated / (used in) Operating Activities:
Overall cash flow generated or used in operating activities after adjusting for non-cash items and changes in working capital.
Cash Flow from Investing Activities:
Purchase of Property, Plant and Equipment (other than ROU Assets) including intangible assets and movement in Capital Work in Progress:
Cash used for acquiring or improving property, plant, equipment, and intangible assets.
Proceeds from disposal of Property, Plant and Equipment:
Cash received from selling or disposing of assets.
Movement in Fixed Deposits (having original maturity of more than three months):
Changes in fixed deposits with a maturity of more than three months.
Investment in mutual funds:
Cash used for purchasing mutual fund investments.
Sale Proceeds on disposal of mutual funds:
Cash received from selling mutual fund investments.
Interest received:
Income earned from interest on investments.
Net Cash flow generated / (used in) Investing Activities:
Overall cash flow generated or used in investing activities, reflecting the net impact of all transactions.
Cash Flow from Financing Activities:
Repayment of long-term borrowings:
Cash used to repay long-term borrowings.
Proceeds/(Repayment) from short-term borrowings (net):
Cash received from or used for short-term borrowing activities.
Payment against Lease Liabilities (including cost of land for afforestation):
Cash used for paying lease liabilities, including specific costs.
Interest and other borrowing cost paid:
Cash used for paying interest and other borrowing costs.
Net Cash flow generated / (used in) Financing Activities:
Overall cash flow generated or used in financing activities, after accounting for all borrowing and repayment activities.
Financial Ratios of ESL Steel Limited
Particulars |
2024 |
2023 |
|
Current Ratio |
0.41 |
0.66 |
|
Debt-Equity ratio |
0.55 |
0.47 |
|
Debt service coverage ratio |
0.23 |
0.37 |
|
Return on Equity Ratio |
-20.48% |
104.35% |
|
Inventory turnover ratio |
6.70 |
13.08% |
|
Trade Receivable turnover |
47.36 |
-2.29% |
|
Trade payables turnover ratio |
2.62 |
-20.03% |
|
|
-3.22 |
-51.51% |
|
Net profit ratio |
-11.07% |
58.28% |
|
Return on capital employed |
-2.74% |
128.79% |
|
Return on Investments |
7.37% |
-49.44% |
Here is a summary of the financial and operational metrics for ESL Steel Limited for the year 2024 & 2023:
Current Ratio:
2024: 0.41
2023: 0.66
Insight: The current ratio measures the company’s ability to cover its short-term liabilities with its short-term assets. A current ratio below 1 indicates that the company may have difficulty meeting its short-term obligations. The decrease from 2023 to 2024 suggests a worsening liquidity position.
Debt-Equity Ratio:
2024: 0.55
2023: 0.47
Insight: The debt-equity ratio indicates the proportion of debt and equity used to finance the company’s assets. An increase in this ratio typically means higher financial leverage. In this case, the increase suggests a higher reliance on debt financing compared to equity in 2024.
Debt Service Coverage Ratio:
2024: 0.23
2023: 0.37
Insight: This ratio measures the company’s ability to cover its debt obligations from its operating income. A decrease indicates that the company’s operating income is less sufficient to cover its debt service requirements, posing a potential risk to creditors.
Return on Equity Ratio:
2024: -20.48%
2023: 104.35%
Insight: The return on equity (ROE) reflects how effectively the company is utilizing shareholders’ equity to generate profit. A negative ROE in 2024 indicates a loss on equity investment, which is unfavorable. The significant drop from 2023 suggests a substantial decline in profitability relative to shareholders’ equity.
Inventory Turnover Ratio:
2024: 6.70
2023: 13.08
Insight: This ratio indicates how efficiently the company manages its inventory by measuring how many times inventory is sold and replaced in a period. A decrease in the turnover ratio from 2023 to 2024 suggests a slower movement of inventory, which could tie up capital and affect liquidity.
Trade Receivable Turnover Ratio:
2024: 47.36
2023: -2.29
Insight: A high turnover ratio indicates that the company is collecting its receivables more frequently. The negative ratio in 2023 might indicate issues with accounts receivable management, possibly including write-offs or adjustments.
Trade Payables Turnover Ratio:
2024: 2.62
2023: -20.03
Insight: The turnover ratio for trade payables measures how quickly the company pays its suppliers. A positive ratio in 2024 indicates an improvement in payment turnover compared to the negative ratio in 2023, which suggests delayed payments.
Net Capital Turnover Ratio:
2024: -3.22
2023: -51.51
Insight: This ratio assesses how effectively the company utilizes its net capital (total assets minus current liabilities) to generate sales. Both years show negative ratios, indicating inefficiency in capital utilization.
Net Profit Ratio:
2024: -11.07%
2023: 58.28%
Insight: The net profit ratio (net income as a percentage of sales) shows profitability after all expenses. The negative ratio in 2024 indicates a loss, whereas the positive ratio in 2023 reflects profit. This suggests a significant decline in profitability.
Return on Capital Employed (ROCE):
2024: -2.74%
2023: 128.79%
Insight: ROCE measures the efficiency with which capital is employed to generate profit. A negative ROCE in 2024 indicates that the company’s capital employed did not generate sufficient returns to cover costs, contrasting sharply with the high positive ROCE in 2023.
Return on Investments:
2024: 7.37%
2023: -49.44%
Insight: This ratio assesses the return on investments made by the company. The positive ratio in 2024 indicates a return on investments, whereas the negative ratio in 2023 suggests losses on investments.
