tata steel india assignment v harish trivedi dm-08-042

8/13/2019 TATA STEEL INDIA Assignment v Harish Trivedi Dm-08-042

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TATA STEELAnalysis after Corus Merger

Presentation by:Harish Trivedi

Roll No: DM-08-

042


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Contents

Company profile

Industry profile

Tata steel and its crisis

Forecasting and graphs

Suggestions and comments


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COMPANY PROFILE

Tata Steel Limited(formerly Tata Iron and Steel Company

Limited(TISCO)) is an Indian multinational steel-making

company

It is the 12th-largest steel producing company in the world, with an

annual crude steel capacity of 23.8 million tones, and the largest

private-sector steel company in India measured by domestic

production

Tata Steel has manufacturing operations in 26 countries, includingAustralia, China, India, the Netherlands, Singapore, Thailand and

the United Kingdom, and employs around 81,600 people.


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COMPANY PROFILE

Its largest plant is located in Jamshedpur, Jharkhand. In

2007 Tata Steel acquired the UK-based steel maker Corus

in what was the largest international acquisition by an

Indian company to date

It is ranked 401st in the 2012 Fortune Global 500 ranking

of the world's biggest corporations.

It is the eighth most-valuable Indian brand according to an

annual survey conducted by Brand Finance and The

Economic Timesin 2010


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STEEL INDUSTRY

The growth in steel demand was driven by increased

demand from key end user industries including

infrastructure, construction and auto mobile.

In the year 2011 the global steel demand estimated to have

increase by 6% a new high of 1373 million tonnes. Growth

led by Chain ( 6% up) India ( 4% up) where demand sets in.


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STEEL INDUSTRY

Where Europe and North America saw a raise of 5% and

9% respectively in 2011, Where Japan saw a fall of 3% due

to earthquake and T tsunami

Second half of 2011 led to the downfall in consumption due

to moderate growth in China, USA and Europe

Still the demand was kept positive by the emerging markets


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LEADING PRODUCERS


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Industry structure (India)


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There has been a diversification in the product mix of steel

and demand from the automobile industry, heavy

machinery and physical infrastructure

Due to various industrial decisions, bank rates, economic

policies the growth of industry was 7.5% and 4.5.%

respectively during FY 11-12

Industry structure ( India)


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TATA STEEL INDIA

The deliveries of Tata steel Europe wasdeclined by 12% due to the crisis in theeconomic situation

Due to which the deliveries level of steel Indiawas increased by 3%

EUROPEANMARKET ANDCRISIS

Severe floods in Thailand reduce the deliverieslevel by 5%

The deliveries of NATSTEEL was at par

Thailand andnaturalcalamities

The turnover for the company was higher by12% in the FY 11-12 when compared withprevious year

This increase was primarily driven by higherinput costs mainly due to Europe Market.

Tata Steel India


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Tata steel India


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Tata Steel Europe

The European market contributes 82% of its totalturn over for the FY 11-12. crude steel production

stood at 14.0 million tonnes in FY11-12 a 4% drop

over the previous year. Deliveries at 14.0 million

tonnes in Fy11-12 lower by 5% over FY 10-11.


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Tata steel Thailand

Recorded a sale volume of 1.14 million tonnes

during the FY 11-12 registering a decrease of11% over the FY 10-11 the short fall in demand

and worse floods in Thailand affected sales in

second half of 11-12


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Sales during the FY11-

12 stood at 6.63 million

tonnes recorded an

increase of 3% over the

FY 10-11.

Financial Statistics


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Net sales increased

by 15% due to better

market and product

mix.



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The purchase offinished, semi

finished and other

products increased

at steel and bearingdivisions to support

higher volume.



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Financial Stats


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The raise on repairsamount on

machinery was

raised by 9% mainly

due to themaintenance and

expansion.

Financial Stats


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The conversioncharges raised

by 27% due to

the conversion of

raw steel into

various other

products like

bearing, longtube etc

Financial stats


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Comparative study

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

dividentpaid , 1, 18

dividentpaid , 2, 8



dividentpaid , 5, 8

Divident per shareyear divident paid

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

NOPS, 1,125.6

NOPS, 2,100.38

NOPS, 3,119.71

NOPS, 4,118.79

NOPS, 5,114.56

Net operating Profit per Shareyear NOPS


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cont

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

OPM, 1,37.68

OPM, 2,35.7

OPM, 3,39.06

OPM, 4,33.99

OPM, 5,29.12

Operating Profit Marginyear OPM

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

PBITM, 1,33.27

PBITM, 2,30.95

PBITM, 3,34.54

PBITM, 4,29.82

PBITM, 5,24.25

PBIT Margin %year PBITM


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cont

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

GPM , 1,33.69

GPM , 2,31.36

GPM , 3,35.16

GPM , 4,30.6

GPM , 5,24.83

Gross Profit Margin%year GPM

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

CPM, 1,23.83

CPM, 2,20.65

CPM, 3,24.6

CPM, 4,21.07

CPM, 5,18.86

Cash Profit Margin %year CPM


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cont

year , 1,2009

year , 2,2010

year , 3,2011

year , 4,2012

year , 5,2013

NPM, 1,21.09

NPM, 2,19.96

NPM, 3,22.94

NPM, 4,19.23

NPM, 5,12.94

Net Profit Margin %year NPM

year , 1,2009

year , 2,2010

year , 3,2011

year , 4,2012

year , 5,2013

ROCE, 1,15.01

ROCE, 2,13.06

ROCE, 3,14.86

ROCE, 4,14.77

ROCE, 5,12.8

Return on capital employed %year ROCE


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cont

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

RNW, 1,21.1

RNW, 2,13.45

RNW, 3,14.68

RNW, 4,12.72

RNW, 5,9.17

Return on net worth %year RNW

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

CR, 1,0.91

CR, 2,1.12

CR, 3,1.53

CR, 4,0.93

CR, 5,0.86

Current Ratioyear CR


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cont

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

D/E Ratio,1, 1.34

D/E Ratio,2, 0.68

D/E Ratio,3, 0.56

D/E Ratio,4, 0.45

D/E Ratio,5, 0.47

Debt to equity ratioyear D/E Ratio

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

D/LTD ER,1, 1.31

D/LTD ER,2, 0.68

D/LTD ER,3, 0.56

D/LTD ER,4, 0.45

D/LTD ER,5, 0.47

Debt to long term debt equity ratioyear D/LTD ER


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cont

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

Interestcover , 1,

5.71

Interestcover , 2,

4.41

Interestcover , 3,

6.26

Interestcover , 4,

5.85

Interestcover , 5,

5.53

Interest Cover Ratioyear Interest cover

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

ITOR, 1,9.36

ITOR, 2,10.9

ITOR, 3,7.44

ITOR, 4,6.98

ITOR, 5,7.27

Inventory Turn ove ratioyear ITOR


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cont

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

DTOR, 1,41.29

DTOR, 2,46.58

DTOR, 3,68.46

DTOR, 4,51.1

DTOR, 5,44.91

Debtors Turnover ratioyear DTOR

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

FATOR, 1,1.22

FATOR, 2,1.12

FATOR, 3,1.32

FATOR, 4,1.48

FATOR, 5,1.01

Fixed assets turn over ratioyear FATOR


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cont

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

ICRMC, 1,68.85

ICRMC, 2,59.69

ICRMC, 3,60.95

ICRMC, 4,60.55

ICRMC, 5,57.76

Imported composition of raw materialconsumedyear ICRMC

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

ECOTS, 1,13.85

ECOTS, 2,8.41

ECOTS, 3,8.07

ECOTS, 4,5.45

ECOTS, 5,6.21

Expenses composition to total salesyear ECOTS


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cont

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

DPORNP,1, 27.15

DPORNP,2, 16.64

DPORNP,3, 19.04

DPORNP,4, 20.11

DPORNP,5, 17.88

Divident payout ratio net profityear DPORNP

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

DPORCP,1, 22.8

DPORCP,2, 13.68

DPORCP,3, 16.32

DPORCP,4, 17.16

DPORCP,5, 13.51

Divident payour ratio cash profityear DPORCP


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cont

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

ERR, 1,71.16

ERR, 2,79.66

ERR, 3,78.97

ERR, 4,78.23

ERR, 5,84.22

Earning retention ratioyear ERR

year, 1,2009

year, 2,2010

year, 3,2011

year, 4,2012

year, 5,2013

CERR, 1,76.03

CERR, 2,83.92

CERR, 3,82.25

CERR, 4,81.65

CERR, 5,87.73

Cash earning retention ratioyear CERR


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cont

year, 1, 2009 year, 2, 2010 year, 3, 2011 year, 4, 2012 year, 5, 2013

EPS, 1, 69.7 EPS, 2, 56.37 EPS, 3, 71.58 EPS, 4, 68.95 EPS, 5, 52.13

Earning per shareyear EPS


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Exponential and macd of TATA steel stock for last five years

with 365 days SMA and 720 days SMA

macd

ema

SELL

BU

Y


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Thank you.

tata steel india assignment v harish trivedi dm-08-042

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