InCred Equities - Steel Authority of India

	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Revenue (Rsm)	1,044,474	1,099,372	1,157,044	1,214,209
Operating EBITDA (Rsm)	80,241	91,805	96,866	100,780
Net Profit (Rsm)	19,031	22,819	23,185	25,062
Core EPS (Rs)	4.2	5.5	5.6	6.1
Core EPS Growth	(86.0%)	32.9%	1.6%	8.1%
FD Core P/E (x)	24.19	20.17	19.86	18.37
DPS (Rs)	4.1	6.5
Dividend Yield
EV/EBITDA (x)	9.52	8.69	7.98	7.40
P/FCFE (x)	13.66	5.71	9.62	8.99
Net Gearing	58.3%	61.9%	55.1%	48.2%
P/BV (x)	0.88	0.85	0.81	0.78
ROE	3.3%	4.3%	4.2%	4.3%
% Change In Core EPS Estimates
InCred Research/Consensus EPS (x)

(Rs mn)	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Total Net Revenues	1,044,474	1,099,372	1,157,044	1,214,209
Gross Profit	475,164	496,372	520,544	544,209
Operating EBITDA	80,241	91,805	96,866	100,780
Depreciation And Amortisation	(49,625)	(47,462)	(49,794)	(51,202)
Operating EBIT	30,616	44,343	47,071	49,578
Financial Income/(Expense)	(20,375)	(21,904)	(24,144)	(24,144)
Pretax Income/(Loss) from Assoc.
Non-Operating Income/(Expense)	13,548	8,022	8,022	8,022
Profit Before Tax (pre-EI)	23,789	30,461	30,949	33,455
Exceptional Items	2,580
Pre-tax Profit	26,369	30,461	30,949	33,455
Taxation	(7,338)	(7,642)	(7,764)	(8,393)
Exceptional Income - post-tax
Profit After Tax	19,031	22,819	23,185	25,062
Minority Interests
Preferred Dividends
FX Gain/(Loss) - post tax
Other Adjustments - post-tax
Net Profit	19,031	22,819	23,185	25,062
Recurring Net Profit	17,169	22,819	23,185	25,062
Fully Diluted Recurring Net Profit	17,169	22,819	23,185	25,062

(Rs mn)	Mar-23A	Mar-24F	Mar-25F	Mar-26F
EBITDA	80,241	91,805	96,866	100,780
Cash Flow from Invt. & Assoc.
Change In Working Capital	(138,224)	10,803	(9,264)	(9,183)
(Incr)/Decr in Total Provisions
Other Non-Cash (Income)/Expense	(7,923)
Other Operating Cashflow	28,020	14,643	16,638	15,380
Net Interest (Paid)/Received	(20,375)	(21,904)	(24,144)	(24,144)
Tax Paid	4,196	7,642	7,764	8,393
Cashflow From Operations	(54,065)	102,988	87,859	91,226
Capex	(39,150)	(92,444)	(40,000)	(40,000)
Disposals Of FAs/subsidiaries
Acq. Of Subsidiaries/investments
Other Investing Cashflow	6,814
Cash Flow From Investing	(32,335)	(92,444)	(40,000)	(40,000)
Debt Raised/(repaid)	120,091	70,107
Proceeds From Issue Of Shares
Shares Repurchased
Dividends Paid	(13,424)
Preferred Dividends
Other Financing Cashflow	(20,800)	(21,904)	(24,144)	(24,144)
Cash Flow From Financing	85,867	48,203	(24,144)	(24,144)
Total Cash Generated	(533)	58,748	23,715	27,082
Free Cashflow To Equity	33,691	80,652	47,859	51,226
Free Cashflow To Firm	(66,026)	32,449	72,003	75,370

(Rs mn)	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Total Cash And Equivalents	3,980	40,814	64,988	92,562
Total Debtors	53,625	56,443	59,404	62,339
Inventories	277,163	271,078	285,299	299,394
Total Other Current Assets	42,866	42,866	42,866	42,866
Total Current Assets	377,633	411,200	452,557	497,161
Fixed Assets	784,141	829,123	819,328	808,126
Total Investments	16,727	15,950	15,950	15,950
Intangible Assets
Total Other Non-Current Assets	98,650	98,650	98,650	98,650
Total Non-current Assets	899,517	943,722	933,928	922,726
Short-term Debt	199,237	155,419	155,419	155,419
Current Portion of Long-Term Debt
Total Creditors	143,389	150,925	158,843	166,690
Other Current Liabilities	150,429	150,429	150,429	150,429
Total Current Liabilities	493,055	456,773	464,691	472,538
Total Long-term Debt	108,497	222,422	222,422	222,422
Hybrid Debt - Debt Component
Total Other Non-Current Liabilities	40,699	18,008	18,468	18,960
Total Non-current Liabilities	149,196	240,431	240,891	241,383
Total Provisions	113,508	113,508	113,508	113,508
Total Liabilities	755,758	810,712	819,089	827,429
Shareholders Equity	521,392	544,211	567,396	592,458
Minority Interests
Total Equity	521,392	544,211	567,396	592,458

	Mar-23A	Mar-24F	Mar-25F	Mar-26F
Revenue Growth	0.9%	5.3%	5.2%	4.9%
Operating EBITDA Growth	(62.4%)	14.4%	5.5%	4.0%
Operating EBITDA Margin	7.7%	8.4%	8.4%	8.3%
Net Cash Per Share (Rs)	(73.54)	(81.60)	(75.74)	(69.07)
BVPS (Rs)	126.23	131.76	137.37	143.44
Gross Interest Cover	1.50	2.02	1.95	2.05
Effective Tax Rate	27.8%	25.1%	25.1%	25.1%
Net Dividend Payout Ratio
Accounts Receivables Days	17.65	18.27	18.27	18.30
Inventory Days	151.58	165.93	159.53	159.26
Accounts Payables Days	(100.20)	(89.08)	(88.82)	(88.67)
ROIC (%)	3.2%	4.4%	4.7%	5.0%
ROCE (%)	3.8%	4.8%	4.7%	4.9%
Return On Average Assets	3.0%	3.4%	3.5%	3.5%

(91) 22 4161 1562 satish.kumar@incredresearch.com

(91) 22 4161 1598 abbas.punjani@incredresearch.com

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Market Data

Source: Bloomberg