sterlite updated

7/31/2019 Sterlite Updated

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Name PRN Industry

Aditya Aggarwal Metal,Metal Products & Mining

Naveen

TanviNitin Ganapule 11020841151

Shruti Mehta 11020841110

Group 3 - Assignment 1


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Company Assigned

Coal India Ltd.

Hindalco Industries Ltd

Jindal Steel & Powers Ltd.Sterlite Industries.

Tata Steel Limited.


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Balance Sheet

Mar '11 Mar '10

Total Share Capital 336.12 168.08

Equity Share Capital 336.12 168.08

Share Application Money 0 0

Preference Share Capital 0 0

Reserves 22,873.03 22,067.40

Revaluation Reserves 19.75 32.6

Networth 23,228.90 22,268.08

Secured Loans 1,569.44 100

Unsecured Loans 4,191.59 5,222.20

Total Debt 5,761.03 5,322.20

Total Liabilities 28,989.93 27,590.28

Gross Block 2,972.76 2,981.87

Less: Accum. Depreciation 1,505.55 1,421.05

Net Block 1,467.21 1,560.82

Capital Work in Progress 720.35 265.81

Investments 6,237.85 10,984.17

Inventories 3,189.87 1,994.04

Sundry Debtors 797.98 385.11

Cash and Bank Balance 72.02 89.9

Total Current Assets 4,059.87 2,469.05

Loans and Advances 18,984.45 12,258.68

Fixed Deposits 1,819.26 2,195.01

Total CA, Loans & Advances 24,863.58 16,922.74

Deffered Credit 0 0

Total Current Liabilities 3,665.83 1,477.24

Provisions 633.23 666.02

Total CL & Provisions 4,299.06 2,143.26

Net Current Assets 20,564.52 14,779.48

Miscellaneous Expenses 0 0

Total Assets 28,989.93 27,590.28

Contingent Liabilities 18,727.22 9,957.57

Book Value (Rs) 69.05 264.58

Cash Flow

Application Of Funds

------------------- in Rs

------------------- in Rs

Sources Of Funds


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Mar '11 Mar '10

Net Profit Before Tax 1874.28 947.8

Net Cash From Operating Activities 265.11 -128.05

Net Cash (used in)/from

Investing Activities

Net Cash (used in)/from Financing Activities 153.55 8780.08Net (decrease)/increase In Cash and Cash Equivalents -17.87 28.12

Opening Cash & Cash Equivalents 95.96 67.84

Closing Cash & Cash Equivalents 78.09 95.96

-436.53 -8623.91


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Hind Zinc Profit & Loss account

Mar '09 Mar '08 Mar '11

141.7 141.7 845.06 Sales Turnover

141.7 141.7 845.06 Excise Duty

0 0 0 Net Sales

0 0 0 Other Income

13,897.32 13,014.60 21,688.13 Stock Adjustments

0.82 8.72 0 Total Income

14,039.84 13,165.02 22,533.19

303.8 572.05 0 Raw Materials

3,526.24 2,685.76 0.39 Power & Fuel Cost

3,830.04 3,257.81 0.39 Employee Cost

17,869.88 16,422.83 22,533.58 Other Manufacturing ExpensesSelling and Admin Expenses

Miscellaneous Expenses

2,889.07 2,765.34 9,802.33 Preoperative Exp Capitalised

1,275.41 1,109.85 2,548.12 Total Expenses

1,613.66 1,655.49 7,254.21

32.16 52.49 875.23 Operating Profit

11,661.85 12,357.03 9,334.59 PBDIT

1,406.90 2,305.99 762.38 Interest

526.89 831.88 208.89 PBDT

61.5 45.67 77.91 Depreciation

1,995.29 3,183.54 1,049.18 Other Written Off

2,872.62 1,261.11 991.82 Profit Before Tax

1,676.34 31.31 5,555.00 Extra-ordinary items

6,544.25 4,475.96 7,596.00 PBT (Post Extra-ord Items)

0 0 0 Tax

1,306.62 1,149.72 1,959.37 Reported Net Profit

675.42 968.42 567.08 Total Value Addition

1,982.04 2,118.14 2,526.45 Preference Dividend

4,562.21 2,357.82 5,069.55 Equity Dividend

0 0 0 Corporate Dividend Tax

17,869.88 16,422.83 22,533.58

Shares in issue (lakhs)

6,696.82 2,825.95 1,736.37 Earning Per Share (Rs)

198.15 185.69 53.33 Equity Dividend (%)

Book Value (Rs)

MPS(rs)

Dividend Per Share

Sterlite Industries (India)

Competitor

Income

Expenditure

. Cr. -------------------

. Cr. -------------------

Per share data (annualised)


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Mar '09 Mar '08

1339.15 1104.47

1976.24 855.42

-163.21 8387.04-9.14 -155.09

76.98 232.07

67.84 76.98

-1822.17 -9397.55


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Mar '11 Mar '10 Mar '09 Mar '08 Mar '11

16,253.88 13,676.47 12,277.74 13,451.59 10,489.82

961.31 561.59 729.36 778.01 581.89

15,292.57 13,114.88 11,548.38 12,673.58 9,907.93

1,611.93 821.99 799.32 546.46 964.65

296 339.79 -316.54 130.8 155.64

17,200.50 14,276.66 12,031.16 13,350.84 11,028.22

14,114.95 12,178.58 9,618.17 11,303.70 1,188.40

370.14 351.12 339.09 295.53 1,022.60

88.57 77.28 82.28 66.18 510.78

133.91 108.96 116.34 90.55 1,436.73131.54 150.11 116.97 153.54 274.73

61.92 59.72 53.9 48.42 158.48

0 0 0 0 -14.05

14,901.03 12,925.77 10,326.75 11,957.92 4,577.67

687.54 528.9 905.09 846.46 5,485.90

2,299.47 1,350.89 1,704.41 1,392.92 6,450.55

273.91 256.44 203.92 164.45 18.28

2,025.56 1,094.45 1,500.49 1,228.47 6,432.27

152.65 150.64 166.18 138.98 474.74

0 0 0 0 0

1,872.91 943.81 1,334.31 1,089.49 5,957.53

7.36 -32.27 50.84 14.98 -16.28

1,880.27 911.54 1,385.15 1,104.47 5,941.25

460.56 133.58 148.72 152.84 1,040.76

1,419.71 831.5 1,236.43 951.63 4,900.49

786.08 747.19 708.58 654.22 3,389.27

0 0 0 0 0

369.73 315.15 247.97 283.4 422.53

59.98 52.34 42.15 48.16 68.55

33,612.08 8,404.00 7,084.94 7,084.94 42,253.19

4.22 9.89 17.45 13.43 11.6

110 187.5 175 200 50

69.05 264.58 198.15 185.69 53.33

173.4 211.88 88.91 178.43

1.1 3.75 3.5 4

Competitor------------------- in Rs. Cr. ------------------- Hind Zinc


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Sterlite Industries is India's largest non-ferrous met


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Ratios Formula Mar '11 Mar '10

Net Profit Margin Net Profit/Net Sales 9.28% 6.34%

Asset Turnover Sales Turnover/TA - Inv - FD - Tot 1.12 1.85

ROA Net Profit/Total Assets - Inv - FD - 9.82% 11.22%

ROE Net Profit/Avg Net Worth 6.24% 4.58%

Current Ratio CA/CL 1.11 1.67

Quick Ratio CA-Inventory/CL 0.237 0.322

Debtor Turnover Ratio Net Credit Sales/ Avg Debtors 25.85 28.76

Inventory Turnover Sales/Inventory 5.10 6.86

Debt Equity Ratio Debt/Equity 0.25 0.24

Interest Cover PBIT/Interest Expense 7.838 4.680

P/E Ratio MPS/EPS 41.09 21.42

Dividend Yield DPS/MPS 0.63% 1.77%

Price to Book MPS/BV 2.511 0.801

ROCE EBIT/(TA-CL) 8.48% 4.60%Fixed assets Turnover Net Sales/Net Block 10.423 8.403

Peer Comparison

Company Market Cap Net Sales Net Profit

Sterlite Ind 34502.8 18091.58 1657.48

Hind Zinc 51929.17 11412.39 5526.04

March '11 March '10

Revenue %(Y-o-Y) 23.51 15.42

Operating Income %(Y-o-Y) 25.52 24.93

Net Income %(Y-o-Y) 24.54 21.83

Cap Spending -5,001 -6,187

Free Cash Flow 7,751 -4,762

Working Capital 25,637 27,621

Financial Leverage (Average) 1.82 1.66

Efficiency March '11 March '10

Days Sales Outstanding 22.99 10.18

Days Inventory 66.32 54.62

Payables Period 70.65 75.83

Cash Conversion Cycle 18.67 -11.03

Rs in Cr.


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Receivables Turnover 15.87 35.86

als and mining company and one of the fastest growing private sector companies.


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Mar '09 % change in '11 % change in '10

10.71% 46.43% -40.78% Net profit margin is LOW compared to ind

5.50 -39.07% -66.43% Asset Turnover is decreasing constantly, h

55.37% -12.46% -79.73% ROA has been lesser than industry in last t

9.09% 36.26% -49.61%

1.53 -33.74% 9.45% CR is approx constant and above 1, so firm

0.450 -26.19% -28.59% QR has been decreasing which means high

17.00 -10.11% 69.20% DTR is high compared to industry, it's ben

8.73 -25.71% -21.41% Inv Turnover is above industry which mea

0.27 3.77% -12.39% DE is constant & very less. Firm is not aggr

7.543 67.46% -37.95% Interest cover is in line with industry & it i

5.10 91.80% 320.47% Higher PE, investors expect higher earning

3.94% -64.16% -55.04% Dividend ield has been constantly decreasi

0.449 213.58% 78.47% PB ratio has been increasing & it can also

9.29% 84.44% -50.51% ROCE has been lower than the interest rat7.157 24.04% 17.41% HIGH FA Turnover means that co. has bee

Total Assets

30056.37

26881.26

March '09

-14.79

-43.14

-24.35

-4,110

3,709

16,225

1.79

March '09

19.72

64.39

110.41

-26.3

Horizontal Analysis

Cash conversion cycle for the firm is good compared to the sector & the

efficiency parameters are in line with sector. The shortfall in cash is cove

Analysis

Despite Strelite being clear market leader in terms of revenues, total ass

compared to peers. This is due to high operating costs, export costs since

Rupee depreciation also has reduced the over

Analysis

Analysis

The firm needs large amount of working capital for its daily operations. This

is financed by short term loans & some long term loans. Firm has free cas

used for financing the WC. The financial leverage is constant througho

Revenues from copper business rose by 8% to Rs. 12,658 crore in 2007- 08.

the cost of production, the combined effect of a 50% fall in TC/RCs, over 11

US dollar and increasing fuel prices led to a 30% reduction in operatin


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18.51

capital.


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ustry standards & it's been decreasing

ence firm's efficiency at using assets in generating profits has been reducing.

wo years, hence the earnings generated were less compared to invested capital

has less liquidity risk

er risk

ficial for the firm since its been operating from cash basis.

s that firm is having higher sales but overall to the firm less sales compared to prev ears

essive to finance its growth from debt.

also HIGH so firm is not burdened by debt expense.

s growth compared to other companies.

ing so the cash flows per rupee invested has been decreasing

ean that stock has been overpriced.

es hence the shareholder's earnings have been reducing.more effective to use FA to generate revenues.

peers. All other

red by working

Analysis

ts & Net sales, the net profit is less

it does have operations in overseas.

l profits.

is working capital

flows which are

t the period.

However, despite major reductions in

appreciation in the rupee against the

g profits (EBIT) to Rs. 998 crore.

Profit

Margin

Asset

TurnoverROA ROE

Curr

Rati

1 2 3 4 5

% change in '11 46.43% -39.07% -12.46% 36.26% -33.7

% change in '10 -40.78% -66.43% -79.73% -49.61% 9.45

-100.00%

-50.00%

0.00%

50.00%

100.00%

150.00%

200.00%

250.00%

300.00%

350.00%

AxisTitle


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Sl Ratios % change i % change in '10

1 Profit Mar 46.43% -40.78%

2 Asset Turn -39.07% -66.43%

3 ROA -12.46% -79.73%

4 ROE 36.26% -49.61%

5 Current Ra -33.74% 9.45%

6 Quick Rati -26.19% -28.59%

7 DTR -10.11% 69.20%

8 Inv Turnov -25.71% -21.41%

9 DE Ratio 3.77% -12.39%

10 Interest Co 67.46% -37.95%

11 P/E Ratio 91.80% 320.47%

12 Dividend Yi -64.16% -55.04%

13 Price to Bo 213.58% 78.47%

14 ROCE 84.44% -50.51%

15 FA Turnov 24.04% 17.41%

nt

o

Quick

RatioDTR

Inv

TurnoverDE Ratio

Interest

CoverP/E Ratio

Dividend

Yield

Price to

BookROCE

FA

Turnover

6 7 8 9 10 11 12 13 14 15

% -26.19% -10.11% -25.71% 3.77% 67.46% 91.80% -64.16% 213.58% 84.44% 24.04%

% -28.59% 69.20% -21.41% -12.39% -37.95% 320.47% -55.04% 78.47% -50.51% 17.41%

% Changes in Ratios

sterlite updated

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