tatasteel financial analysis

“The nation which gains control of iron, soon acquire control

of gold”

- Thomas Carlyle

04/10/2023 TATA STEEL 3

AN OVERVIEW• Number of years the company’s presence104• Number of countries the company is present

in, with manufacturing operations in 26 of them50

• mtpa for the year 2010-116.42• Gross deliveries ( in MnT) for all the steel

producing entities23.54

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OVERVIEW CONTINUED..

• Sales Turnover for 2010-11 in Rs. Crores

• An increase of 16% over the previous year

1,18,753

• EBIDTA in Rs. Crores for 2010-11

• Amounts to a 25% rise over the last FY

17,103

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GLOBAL PRESENCE

26%

13%

27%

29%

5%

Geographical Distribution of Revenue

IndiaAsia excluding IndiaUKEU excluding UKRoW

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KEY MARKET SECTORS

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SHAREHOLDING PATTERN

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PERFORMANCE OF TATA STEEL SHARE PRICE COMPARISON WITH BSE SENSEX

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BALANCE SHEET AS AT 31ST MARCH 2010

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PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH 2010

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Trend Analysis

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NET WORTH

Mar '06 Mar '07 Mar '08 Mar '09 Mar '100.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

35,000.00

40,000.00

9,755.30

14,096.15

27,300.73

29,704.60

37,168.75

Networth (In crores)

Networth

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NET SALES


5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

15,132.09

17,452.66

19,654.41

24,348.3224,940.65

Net Sales (In crores)

Net Sales

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TOTAL INCOME


2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

6,136.80

7,275.87

8,830.95

9,779.5110,146.67

EBIDTA (In crores)

EBIDTA

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PROFIT AFTER TAX


1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

3,506.38

4,222.15

4,687.03

5,201.745,046.80

PAT (In crores)

PAT

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EARNINGS PER SHARE

Mar '06 Mar '07 Mar '08 Mar '09 Mar '1054

56

58

60

62

64

66

68

70

72

63.35

65.28

66.8

69.45

60.26

Earnings Per Share

Earnings Per Share

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Ratio Analysis

LIQUIDITY RATIOSParticulars Mar 2010 Mar 2009 Mar 2008

Current Ratio(x) 1.84 1.78 9.59

Quick Ratio(x) 1.38 1.2 8.91

Total Debt/Equity(x) 0.81 0.93 0.66

Interest coverage(x) 4.9 5.91 8.61

LIQUIDITY RATIOS

Mar 2010 Mar 2009 Mar 20080

2

4

6

8

10

12

1.84 1.78

9.59

1.38 1.2

8.91

0.81 0.93 0.66

4.9

5.91

8.61

Current Ratio(x) Quick Ratio(x) Total Debt/Equity(x) Interest coverage(x)

CAPITAL STRUCTURE RATIOS Particulars Formula Mar 2010 Mar 2009 Mar 2008

Debtors turnover ratio

(x) net credit sales/ average debtors 8Days 9Days 11Days

Inventory turnover ratio

(x) COGS/ avg. inventory 46Days 43Days 42Days

CAPITAL STRUCTURE RATIOS

Mar 2010 Mar 2009 Mar 20080

5

10

15

20

25

30

35

40

45

50

8 911

4643 42

Debtors turnover ratio (x) net credit sales/ average debtors Inventory turnover ra-tio (x) COGS/ avg. in-ventory

PROFITABILITY AND MARGIN RATIOS

Particulars Formula Mar 2010 Mar 2009 Mar 2008Operating profit Margin (%)

EBIT/Net Sales 38.88 39.61 41.94

Net Profit Margin (%)

NP/Net Sales 22.78 23.53 23.43

PROFITABILITY AND MARGIN RATIOS

1 2 30

5

10

15

20

25

30

35

40

45

38.88 39.6141.94

22.78 23.53 23.43Series1Operating profit Margin (%) EBIT/Net Sales Net Profit Margin (%) NP/Net Sales

PROFITABILITY RATIOS

Particulars Formula Mar 2010 Mar 2009 Mar 2008

ROA(%)Net Income/Total Assets 8.31 10.5 13.57

ROCE(%)EBIT/ Average Total Capital 14.25 16.12 20.53

Asset Turnover(x) Revenue/Asset 0.44 0.52 0.64

VALUATION PARAMETERSParticulars

Mar 2010 Mar 2009 Mar 2008Earnings Per Share (Rs)

60.26 69.45 66.80Dividend per share (DPS)

8 16 16

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Comparative Analysis

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Tata Steel SAIL Jindal Steel

Current ratio 1.84 3.57 2.03

Quick ratio 1.38 2.75 1.57

Collection period 8 26.63 21.53

Inventory in hand 44.73 78.36 53.9

Payment days 91.96 56.94 132.18

Total debt/equity 0.81 0.93 0.66

LEVERAGE WARNINGS

ACTIVITY

FINANCING

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TATA STEEL SAIL JINDAL STEEL

EBIDTA margin % 33.1 22.01 29.52

Net profit margin % 18.86 15.11 17.21

Asset turnover 0.44 1.04 0.67

ROA 8.31 15.79 11.6

ROE 16.4 21.98 24.45

EPS 56.37 16.35 15.89

P/E ratio 11.22 15.4 44.19

DPS 8 3.3 1.25

Book NAV/Share 416.6 80.66 72.17

Yield % 1.26 1.31 0.18

PERFORMANCE

EARNINGS

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LEVERAGE WARNINGS

Current ratio Quick ratio0

0.5

1

1.5

2

2.5

3

3.5

4

Tata SteelSAILJindal Steel

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ACTIVITY

Tata Steel SAIL Jindal Steel0

20

40

60

80

100

120

140

Collection periodInventory in handPayment days

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FINANCING

Tata Steel SAIL Jindal Steel0

0.10.20.30.40.50.60.70.80.9

1

Total debt/equity

Total debt/equity

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PERFORMANCE

EBIDTA margin %

Net profit margin %

Asset turnover

ROA ROE0

5

10

15

20

25

30

35 33.1

18.86

0.44

8.31

16.4

22.01

15.11

1.04

15.79

21.98

29.52

17.21

0.67

11.6

24.45


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EARNINGS

EPS P/E ratio DPS Book NAV/Share

Yield %0

50

100

150

200

250

300

350

400

450

56.37

11.22 8

416.6

1.2616.35 15.43.3

80.66

1.31

15.89 44.19

1.25

72.17

0.18


04/10/2023 TATA STEEL 34

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tatasteel financial analysis

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