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Submitted to
Indian Institute of Management, Kozhikode
Submitted by
Anirban Tewary - ePGP-03-101.
N K Ashok - ePGP-03-105.
Sivakumar Lakshminarayanan - eMEP-10-063.
Soumen Sen -ePGP-03-174.
Objective : Objective of the Project is to do a Financial Statement Analysis between Tata Steel and JSW Steel
and try to conclude about both the Companies. Tata Steel is the Leader in the Steel industry and JSW Steel
is upcoming Steel company.
Balance Sheet
JSW Steel
Mar '09
Tata Steel
Mar '10
Mar '09
Mar '10
Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities
537.01
248.08
0
288.93
7,422.24
0
7,959.25
8,214.61
3,058.02
11,272.63
19,231.88
527.11
248.08
0
279.03
9,179.23
0
9,706.34
8,987.51
2,597.59
11,585.10
21,291.44
6,203.45
730.79
0
5,472.66
23,501.15
0
29,704.60
3,913.05
23,033.13
26,946.18
56,650.78
887.41
887.41
0
0
36,281.34
0
37,168.75
2,259.32
22,979.88
25,239.20
62,407.95
Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets
16,896.75
3,810.31
13,086.44
9,242.06
1,250.11
2,051.42
398.14
207.91
2,657.47
1,980.02
212.05
4,849.54
0
9,115.34
80.93
9,196.27
-4,346.73
0
19,231.88
21,795.58
4,929.44
16,866.14
6,684.27
1,768.35
2,585.77
563.25
117.4
3,266.42
2,216.05
169.71
5,652.18
0
9,415.28
264.22
9,679.50
-4,027.32
0
21,291.44
20,057.01
9,062.47
10,994.54
3,487.68
42,371.78
3,480.47
635.98
463.58
4,580.03
5,884.61
1,127.02
11,591.66
0
8,965.76
2,934.19
11,899.95
-308.29
105.07
56,650.78
22,306.07
10,143.63
12,162.44
3,843.59
44,979.67
3,077.75
434.83
500.3
4,012.88
6,678.55
2,733.84
13,425.27
0
8,699.34
3,303.68
12,003.02
1,422.25
0
62,407.95
12,188.55
331.68
13,184.61
418.94
Contingent Liabilities
Book Value (Rs)
8,170.64
410.07
6,990.48
504
JSW Steel
Mar '09
Mar '10
Tata Steel
Mar '09
Mar '10
Income
19,456.6
4
1,289.18
18,167.4
6
474.25
64.74
18,706.4
5
26,843.5
3
2,495.21
24,348.3
2
603.07
289.27
25,240.6
6
11,430.64
11,415.8
6
1,014.82
365.2
249.6
724.63
188.53
0
13,958.6
4
8,568.71
1,222.48
2,305.81
2,127.48
400.24
1,180.08
-343.65
15,461.1
5
15,900.09
2,861.17
2,252.70
836.82
1,415.88
827.66
0
588.22
176.8
765.02
306.52
458.5
2,044.17
28.99
18.71
8.11
4,273.56
4,747.81
900.26
3,847.55
1,123.41
0
2,724.14
96.03
2,820.17
797.43
2,022.74
2,542.78
28.92
177.7
34.31
9,176.44
9,779.51
1,489.50
8,290.01
973.4
0
7,316.61
0
7,316.61
2,114.87
5,201.74
6,892.44
109.45
1,168.95
214.1
8,905.59
10,146.67
1,848.19
8,298.48
1,083.18
0
7,215.30
0
7,215.30
2,168.50
5,046.80
7,543.64
45.88
709.77
122.8
1,870.49
22.96
10
410.07
1,870.49
106.59
95
504
7,305.92
69.7
160
331.68
8,872.14
56.37
80
418.94
Sales Turnover
Excise Duty
15,179.29
1,172.70
Net Sales
Other Income
Stock Adjustments
14,006.59
-608.47
285.22
Total Income
Expenditure
13,683.34
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Admin Expenses
Miscellaneous Expenses
Preoperative Exp Capitalised
Total Expenses
Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)
9,386.47
673.07
288.75
194.03
717.74
170.58
0
26,757.60
1,816.95
24,940.65
1,241.08
-134.97
26,046.76
8,356.45
1,383.44
2,361.48
2,419.89
417.9
1,287.04
-326.11
Horizontal Analysis
JSW Steel : The Operating profit has increased from 2861 Cr to 4273 Cr due to higher Sales
hence JSW has paid more Excise Duty
Tata Steel : The Operating Profit has reduced as the Sales has dropped from 26843 Cr to 26757 Cr
Not a good sign
JSW Steel
Mar '09 Mar '10
Cash Flow
Tata Steel
Mar '09 Mar '10
4056.12
12
mths
2819.6
5
3297.7
6
-5834.9
1848.53
-3147.8
-261.78
-9428.1
3156.42
69.79
-111.8
1125.56
306.82
376.61
465.04
376.61
264.81
1590.6
12 mths
Net Profit Before Tax
677.63
Profit Margins
JSW Steel
Mar '09
Sales Turnover
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Cost of Goods Sold
Gross Profit
15,179.29
9,386.47
673.07
288.75
194.03
10,542.32
4,636.97
30.55
2,861.17
Operating Profit %
Profit before Interest
Profit before Interest %
18.85
2,252.70
14.84
12 mths
7315.61
7397.22
Tata Steel
Mar '10
Mar '09
Mar '10
19,456.64 26,843.53
11,415.86
8,568.71
1,014.82
1,222.48
365.20
2,305.81
249.60
2,127.48
13,045.48 14,224.48
6,411.16 12,619.05
26,757.60
8,356.45
1,383.44
2,361.48
2,419.89
14,521.26
12,236.34
32.95
4,273.56
47.01
9,176.44
45.73
8,905.59
21.96
4,747.81
24.40
34.18
9,779.51
36.43
33.28
10,146.67
37.92
12
mths
7214.3
8369.2
2
-5254.8
-1473.1
1641.2
5
1592.8
9
3234.1
4
JSW Steel
Tata Steel
Mar '10
Mar '09
Mar '10
Mar '09
2,657.47
3,266.42
4,580.03
4,012.88
16,896.75 21,795.58 20,057.01 22,306.07
19,554.22 25,062.00 24,637.04 26,318.95
2,861.17
14.63
4,273.56
17.05
22,308.11
19.16
9,176.44
37.25
8,905.59
33.84
25,478.00
34.95
JSW Steel
Tata Steel
Mar-09
Mar-10
Mar-09
Mar-10
19,231.88 21,291.44 56,650.78 62,407.95
2,022.74
5,201.74
5,046.80
458.50
2.38
9.50
9.18
8.09
20,261.66
59,529.37
9.98
8.48
Return on Equity
Total Equity
Profit After Tax
Return on Equity( %)
Average of Total Equity
ROE based on Average of Total Equity
JSW Steel
Mar-09
Mar-10
248.08
248.08
458.50
2,022.74
184.82
815.36
248.08
815.36
Tata Steel
Mar-09
Mar-10
730.79
887.41
5,201.74
5,046.80
711.80
568.71
809.10
623.75
The ROE of JSW has increased comparing Mar 2009 because it has earned better profits in Mar2010
But both have better ROE and JSW has performed better comparing Tata Steel
JSW Steel
Mar '09
Mar '10
458.5
2,022.74
28.99
28.92
42951
199382
1,870.49
1,870.49
22.96
106.59
1245
234
10.19
11.68
Tata Steel
Mar '09
Mar '10
5,201.74
5,046.80
109.45
45.88
509229
500092
7,305.92
8,872.14
69.70
56.37
207
636
2.97
11.28
Both JSW and Tata Steel are having more or less same PE ratio for Mar2010 , investors can choose
either one of them based on the PE Ratio
JSW Steel
Mar '10
Mar '09
18.71
177.7
1871
17770
1
10
Tata Steel
Mar '09
Mar '10
1,168.95
709.77
116895
70977
16
8
Tata Steel is paying a better dividend comparing JSW at Share value of 636
Considering PE ratio and Dividend Tata Steel is a prefered option for Investment
JSW Steel
Mar '10
Mar '09
19231.88 21291.44
458.50
2022.74
15179.29 19456.64
3.02
10.40
0.79
0.91
2.38
9.50
Tata Steel
Mar '09
Mar '10
56650.78 62407.95
5201.74
5046.80
26843.53 26757.60
19.38
18.86
0.47
0.43
9.18
8.09
JSW has shown good ROTA for the year Mar 2010 and Tata Steel has dropped due to Drop in Profit
Sales Turnover
Operating Profit
Operating Profit Margin %
Fixed Assets
Total Operating Assets
Operating Asset Turnover
Fixed Asset Turnover
Return on Operating Asstes ( %)
Average of Operating Assets
Avg Operating Asset Turnover
ROA on Avg of Operating Assets
JSW Steel
Mar '09
Mar '10
Tata Steel
Mar '09
Mar '10
JSW Steel
Mar '10
Mar '09
15179.29 19456.64
-4346.73
-4027.32
-3.49
-4.83
-4187.03
-4.65
Tata Steel
Mar '09
Mar '10
26843.53 26757.60
-308.29
1422.25
-87.07
18.81
556.98
48.04
Tata steel Working Capital has imporved in Mar2010 but JSW is probabling financing with Long Term funds
JSW Steel
Mar '09
Mar '10
15179.29 19456.64
537.01
527.11
28.27
36.91
532.06
36.57
Tata Steel
Mar '09
Mar '10
26843.53 26757.60
6203.45
887.41
4.33
30.15
3545.43
7.55
ShareHolder's Equity has improved for Tata after Paying the Preferntial Shares
JSW Steel
Tata Steel
Mar '10
Mar '09
Mar '10
Mar '09
4,849.54
5,652.18 11,591.66 13,425.27
9,196.27
9,679.50 11,899.95 12,003.02
-4,346.73
-4,027.32
-308.29
1,422.25
0.53
0.58
0.97
1.12
2,585.77
3,066.41
0.32
3,480.47
8,111.19
0.68
3,077.75
10,347.52
0.86
JSW Steel
Tata Steel
Mar '09
Mar '10
Mar '09
Mar '10
15,179.29 19,456.64 26,843.53 26,757.60
41.59
53.31
73.54
73.31
398.14
563.25
635.98
434.83
38.13
34.54
42.21
61.54
9.57
10.57
8.65
5.93
480.70
535.41
40.48
49.98
9.02
7.30
Tata Steel has slightly better Avg Collection Period comparing JSW Steel.
Inventory Turnover
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Cost of Goods Sold
Cost of Goods Sold per Day
Inventories
nventory Turnover
Inventory Holding Period
Average Inventory Turnover
Inventory Holding based on Avg Inventory
JSW Steel
Mar '10
Mar '09
9,386.47 11,415.86
673.07
1,014.82
288.75
365.2
194.03
249.6
10,542.32 13,045.48
28.88
35.74
2,051.42
2,585.77
5.14
5.05
71.03
72.35
5.09
71.68
Tata Steel
Mar '09
Mar '10
8,568.71
8,356.45
1,222.48
1,383.44
2,305.81
2,361.48
2,127.48
2,419.89
14,224.48 14,521.26
38.97
39.78
3,480.47
3,077.75
4.09
4.72
89.31
77.36
4.40
82.91
Debt-Equity Ratio
Debt-Equity Ratio
Total Debt
Sharholders Equity
Debt-Equity Ratio
JSW Steel
Mar '09
Mar '10
11,272.63
248.08
45.44
11,585.10
248.08
46.70
Tata Steel
Mar '09
Mar '10
26,946.18 25,239.20
730.79
887.41
36.87
28.44
Both have higher Debt comparing Shareholder's Equity. Both have higher Commitment
in terms of interest from the earnings.
JSW Steel
Mar '10
Mar '09
11,272.63 11,585.10
248.08
248.08
45.44
46.70
Tata Steel
Mar '09
Mar '10
26,946.18 25,239.20
730.79
887.41
36.87
28.44
JSW Steel
Mar '09
Mar '10
11,272.63 11,585.10
13,086.44 16,866.14
86.14
68.69
Tata Steel
Mar '09
Mar '10
26,946.18 25,239.20
10,994.54 12,162.44
245.09
207.52
JSW steel has better Asset Value which can cover the Long Term Debt but Tata Steel
has higher debt with regards to Asset Value.
JSW Steel
Mar '09
Mar '10
2,861.17
836.82
3.42
4,273.56
900.26
4.75
Tata Steel
Mar '09
Mar '10
9,176.44
1,489.50
6.16
8,905.59
1,848.19
4.82
Both Companies have good Interest Cover and Interest can be comfortably covered
Conclusion
Conclusion
Parameter
Investments in Cr
Points Value
Points Value
JSW
Tata Steel
Remark
0
1 44,979.67 Tata Steel has better Investments than JSW Steel
1,768.35
Inventory in Cr
2,585.77
Sundry Debtors in Cr
Total Assets in Cr
Sales Turnover in Cr
0
0
1
563.25
21,291.44
19,456.64
1
1
0
Operating Profit in Cr
4,273.56
2,022.74
Cash Flow in Cr
Operating Profit %
Return on Operating Asset %
Return on Equity %
EPS
Price Earnings Ratio
0
0
0
1
1
1
264.81
21.96
19.16
815.36
106.59
11.68
1
1
1
0
0
1
0
1
0
0
1
0
0
9.50
9.50
208.67
-4.65
36.57
0.58
0.32
1
0
1
1
0
1
1
9.02
1
0
1
1
11
71.68
46.70
68.69
4.75
0
1
0
1
16
Conclusion: From the above it is observed that although the turnover & profitability of Tata Steels have reduced as compared to previous year,
the financial disciple is better than JSW Steels