Electrosteel Steels Unlisted Shares
About Electrosteel Steels Unlisted Shares
About Electrosteel Steels
Electrosteel Steels Limited (ESL) is a prominent steel manufacturer based in India, with its integrated steel plant situated near Siyaljori village, Bokaro district, Jharkhand. The company operates a 2.51 Million Ton Per Annum (MTPA) steel production facility, equipped with modern infrastructure including a Sinter Plant, Coke Oven, Blast Furnace, and more. ESL manufactures a wide range of products such as Pig Iron, Billets, TMT Bars, Wire Rods, and Ductile Iron Pipes. By leveraging cutting-edge technology and adhering to international best practices, Electrosteel Steels ensures top-tier quality while maintaining high environmental standards.
Business Divisions of Electrosteel Steels
Electrosteel Steels is divided into key operational segments that contribute to the company’s overall performance:
Steel Manufacturing: The core division of Electrosteel Steels, focused on producing various steel products like TMT bars, billets, and wire rods, which are crucial for infrastructure and construction projects.
Iron Production: Electrosteel also manufactures pig iron, which is a vital raw material used in steelmaking. This division has seen increased focus on backward integration, such as the acquisition of two iron ore mines in Odisha, ensuring steady access to raw materials.
Pipe Manufacturing: The company’s ductile iron pipe segment serves industries needing durable and high-quality piping solutions for water and sewage systems.
Power Generation: The power plant attached to the steel plant helps in meeting the internal energy requirements, enhancing cost-effectiveness and operational efficiency.
Financial Highlights of Electrosteel Steels
Below are the key financial highlights of Electrosteel Steels for the years 2022-2024:
Revenue Growth: Electrosteel Steels reported consistent growth in revenue, from ₹6,596 crore in 2022 to ₹8,508 crore in 2024. This increase indicates a recovery in demand for its products, despite challenges in the steel industry.
Improved Gross Margins: The gross margin improved significantly from 30.38% in 2022 to 48.45% in 2024, showcasing enhanced cost control measures and the positive impact of backward integration strategies.
EBITDA Performance: The company’s EBITDA, however, showed a decline from ₹563 crore in 2022 to ₹161 crore in 2024. This decrease is mainly due to rising material costs, particularly for iron ore and coking coal.
Profitability Struggles: Electrosteel Steels has been facing challenges in profitability, with a negative PAT (Profit After Tax) of ₹967 crore in 2024, a decline from ₹-558 crore in 2023. This highlights ongoing struggles with cost control and external market conditions.
Asset Management: The company’s total assets stood at ₹10,808 crore in 2024, with a slight reduction from ₹11,150 crore in 2022. This decrease is linked to strategic changes in capital reserves and asset valuations as part of the restructuring efforts.
Pros
Strategic Restructuring: Vedanta’s acquisition and debt-to-equity conversion have strengthened the financial foundation.
Backward Integration: Acquisition of iron ore mines in Odisha enhances cost control and operational efficiency.
Sustainability & Innovation: Commitment to green initiatives and advanced technologies drives long-term growth.
Cons
Debt Challenges: Significant debt issues led to NCLT intervention and have pressured financial health.
Commodity Price Volatility: Fluctuations in iron ore and coking coal prices have adversely affected profit margins.
Economic Uncertainty: Global events, such as the Russia-Ukraine conflict, impact steel pricing and performance.
Key Details
| Metric | Value |
|---|---|
| Market Cap | ₹739.61 Cr |
| P/E Ratio | -0.76 (Negative EPS) |
| P/B Ratio | 0.16 (Undervalued) |
| Debt to Equity Ratio | 0.5 (Moderate debt) |
| Return on Equity (ROE) | -21.03% (Loss-making) |
| Book Value | ₹24.93 |
| Earnings Per Share | -₹5.23 |
| Face Value | ₹10 |
| Total Outstanding Shares | 1,84,90,30,224 |
| Particulars | Details |
|---|---|
| Share Price | ₹4.00 per equity share |
| Lot Size | 1000 Shares |
| 52 Week High | ₹54 |
| 52 Week Low | ₹32 |
| Depository | NSDL & CDSL |
| PAN Number | AABCE6875H |
| ISIN Number | INE481K01021 |
| CIN | U27310JH2006PLC012663 |
| RTA | KFin Technologies |
Financials
| Particulars | 2024 | 2023 | 2022 |
|---|---|---|---|
| Revenue | 8,508 | 7,977 | 6,596 |
| Cost of Material Consumed | 4,386 | 5,022 | 4,592 |
| Gross Margin (%) | 48.45 | 37.04 | 30.38 |
| Change in Inventory | 148 | -405 | -250 |
| Employee Benefit Expenses | 226 | 213 | 161 |
| Other Expenses | 3,587 | 2,873 | 1,530 |
| EBITDA | 161 | 274 | 563 |
| Operating Profit Margin (%) | 1.89 | 3.43 | 8.54 |
| Other Income | 85 | 75 | 204 |
| Finance Cost | 432 | 376 | 338 |
| Depreciation & Amortization | 463 | 444 | 345 |
| EBIT | -302 | -170 | 218 |
| EBIT Margin (%) | -3.55 | -2.13 | 3.31 |
| Profit Before Tax (PBT) | -649 | -471 | 24 |
| PBT Margin (%) | -7.63 | -5.90 | 0.36 |
| Tax | 318 | 87 | 118 |
| Profit After Tax (PAT) | -967 | -558 | -94 |
| Net Profit Margin (%) | -11.37 | -7.00 | -1.43 |
| Earnings Per Share (EPS) | -5.23 | -3.02 | -0.50 |
| Ratio | FY24 | FY23 | FY22 |
|---|---|---|---|
| Operating Margin | 0% | -2% | 5% |
| Net Profit Margin | -2% | -3% | 2% |
| Return on Equity (ROE) | -11% | -20% | 11% |
| Debt-to-Equity Ratio | 1.82 | 2.41 | 1.53 |
| Current Ratio | 1.71 | 1.54 | 1.23 |
| Dividend Payout | 0% | 0% | 0% |
| Metric | ESL Steel Ltd | Beekay Steel Industries Ltd | Rudra Global Infra Products Ltd |
|---|---|---|---|
| Market Cap (₹ Cr) | 9,060 | 1,154 | 270 |
| Profitability Margin (%) | -11% | 9% | 3% |
| Return on Capital Employed (ROCE) | -3% | 15% | 12% |
| Return on Equity (ROE) | -21% | 14% | 14% |
| Debt-to-Equity (D/E) Ratio | 0.50 | 0.30 | 1.24 |
| Price-to-Earnings (P/E) Ratio | -9.37 | 11.80 | 18.90 |
| Price-to-Book (P/B) Ratio | 1.97 | 1.42 | 2.91 |
| Book Value per Share (₹) | 24.87 | 425.00 | 37.00 |
| Particulars | FY24 | FY23 | FY22 |
|---|---|---|---|
| Share Capital | 1,849.03 | 1,849 | 1,849 |
| Face Value (₹) | 10 | 10 | 10 |
| Reserves | 2,750 | 3,718 | 4,278 |
| Borrowings | 2,293 | 2,406 | 2,862 |
| Trade Payables | 652 | 674 | 469 |
| Other Liabilities | 3,263.97 | 10,572 | 1,692 |
| 🔸 Total Liabilities | 10,808 | 19,219 | 11,150 |
| Particulars | FY24 | FY23 | FY22 |
|---|---|---|---|
| Fixed Assets | 4,859 | 4,954 | 4,567 |
| CWIP | 1,700 | 1,299 | 806 |
| Investments | 20 | 20 | 180 |
| Trade Receivables | 111 | 249 | 80 |
| Inventory | 1,063 | 1,394 | 1,179 |
| Other Assets | 3,055 | 3,330 | 4,338 |
| 🔹 Total Assets | 10,808 | 11,246 | 11,150 |
