RATING

RECOMMENDATION

Neutral

  • ROFR Required
  • Available in Depository:

  • NSDL

  • CDSL

  • Available for Investment:

  • Primary

  • Secondary

RATING

RECOMMENDATION

Neutral

Business Type

Emerging Leader

RATING

RECOMMENDATION

Neutral

Business Type

Emerging Leader

  • ESL Steel Growth

Get Updated information on ESL Steel Pre IPO before buying & Selling and investing in unlisted shares. In this research report, you will know about ESL Steel Key Ratios data. In addition, get the Complete details about the Net Profit Growth, Revenue Growth, Book Value Growth and ESL Steel Peer Comparison.

ESL Steel Revenue Growth

Growth in %

  • 9.33%

    1 Year

  • 9.38%

    3 Year

  • 11.02%

    5 Year

The company's total revenue has been improving and increasing year after year. The company's total export sales rose from Rs. 17 crore in FY20 to Rs. 452 crore in FY21, primarily from billet and wire rod sales outside India. It must be noted that the export composition of total revenue has also changed from 0.4% in FY20 to 9.7% in FY21. Although total domestic sales fell by 1.4% from the previous year, the rise in export sales has pushed up the total revenue of the company by 9.3%.

ESL Steel Net Profit Growth(PAT)

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

The total revenue of the company grew by 9.3%, while expenses grew by only 2.9%, which indicates that the company has been able to achieve operating efficiency. The EBIT of the company was negative, which was due to the huge compliance cost for environmental clearance, which was Rs. 276 Cr that they had to bear, generating a total loss of Rs. 21 Cr before taxes. Although the primary reason for the increase in the net profit was the deferred tax assets, which amounted to Rs. 3,253 Cr., which pushed the net profit of the company substantially positive. 

ESL Steel EPS Growth

Growth in %

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

The company has been able to realise a net profit of Rs. 2732 Cr., while in FY20, the company was facing a loss of Rs. 22 Cr. This means that the EPS grew along with the net profit of the company. Also in FY21, the company did not increase or decrease its total shares outstanding. 

  • ESL Steel Book Value Growth

Growth in %

  • 36.56%

    1 Year

  • NA

    3 Year

  • 37.35%

    5 Year

Book value showed a significant growth of 78%, primarily due to retained earnings of the company, which was a result of higher deferred tax assets of Rs. 2,753 Cr. in FY21. Most of the deferred tax assets are from accumulated unabsorbed depreciation, which increased from Rs. 439 Cr. in FY20 to Rs. 2,433 Cr. in FY21.

ESL Steel EBITDA Growth

Growth in %

  • 46.14%

    1 Year

  • 32.14%

    3 Year

  • 63.10%

    5 Year

EBITDA in FY21 grew by 46% from FY20's EBITDA, primarily as a result of a 3% year-on-year increase in average sales realisation from Rs. 35,109 per tonne in FY19 to Rs. 36,197 per tonne in FY21 and a 1.5% decrease in cost from Rs. 29,563 to Rs. 29,127 per tonne. EBIDTA increased through focused cost control owing to operational efficiencies and lower coking coal prices.

ESL Steel Operating Profit Growth

Growth in %

  • 74.17%

    1 Year

  • NA

    3 Year

  • NA

    5 Year

The EBIT of the company grew by 74%. This has been due to higher EBITDA in FY21, although the company had increased its assets, which increased the total assets of the company as well as the depreciation associated with them. The depreciation amount grew by 13% from Rs 306 Cr. in FY20 to Rs. 346 Cr in FY21. Nonetheless, the EBIT in absolute terms has increased by Rs 268 Cr.

ESL Steel Asset Growth

Growth in %

  • 34.87%

    1 Year

  • 12.44%

    3 Year

  • -3.35%

    5 Year

Total assets of the company have increased by 34.9%. Current assets accounted for 19% of the growth, and non-current assets grew by 42%. The company had increased its intangible assets, which increased by 3x, and the company also increased its deferred tax amount, which is Rs. 2752 Cr., becoming the major source of increase in the total assets of the company. In terms of fixed assets, net property, plant, and equipment fell by 8%, owing primarily to the steel plant at Bokaro, which has been the subject of litigation.

ESL Steel Cash Flow from Operations

Growth in %

  • -88.34%

    1 Year

  • -57.74%

    3 Year

  • -35.84%

    5 Year

Cash from operations showed a significant decline primarily because of increase in the amount of loans and advances in FY21. Cash flow from operation before adjustment of working capital has been higher when compared with previous year. All the fall had been brought after adjustment of changes in the working capital of the company.

  • ESL Steel Solvency Ratios

ESL Steel D/E Ratio

The total debt to equity ratio showed a marginal decline, primarily because of increased retained earnings in FY21 in comparison to FY20 because of higher profits in FY21 compared to FY20, which has resulted in higher equity for the company. Profits have increased majorly because of higher deferred tax assets in FY21 compared to FY20.

ESL Steel Current Ratio

Liquid ratios showed a marginal decline, primarily because of the increase in current liabilities of the company, which is mostly due to the current maturities of secured loans and short-term borrowings to meet its working capital limits and provisions for employees. 

ESL Steel Quick Ratio

ESL Steel Interest Coverage Ratio

Interest coverage ratio increased marginally, owing primarily to higher EBIT due to increased sales and lower material costs consumed in FY21 compared to FY20.Also, the company had decreased its total interest expense, which they owe as most of the funding had been done through unsecured borrowings from the holding company. 

  • ESL Steel Operating Efficiency

Due to the lower cost of materials consumed in FY21 compared to FY20, the company has been able to increase its profitability margins, i.e., EBIT, EBITDA, PAT, and PBT margins. The company has lowered its purchases of raw and other materials consumed from Rs. 2,745 Cr. in FY20 to Rs. 2,594 Cr. in FY21. Also, the company has been able to increase its exports from Rs. 16 Cr. in FY20 to Rs. 452 Cr. in FY21.

ESL Steel Operating Profit EBIT Margin(OPM)

ESL Steel Profit Before Tax Margin (PBT Margin)

ESL Steel Profit After Tax Margin (PAT Margin)

  • ESL Steel Profitablity Ratio

The company was profitable in FY21. That has been the reason for the increase in all of the profitability ratios. The total equity of the company grew by 78%. The company has increased its total equity and non-current liabilities by 36.5% to finance its expansionary motives and has been able to achieve higher returns in FY21 compared to FY20, along with a higher return on assets. 

ESL Steel Return on Equity(RoE)


ESL Steel Return on Capital Employed(RoCE)


ESL Steel Return to Assets (RoA)


  • ESL Steel Valuation Ratios

ESL Steel Earning Yield