Financial Analysis Of Tata Steel

Description
This is a spreadsheet explains on financial analysis of Tata Steel.

Balance Sheet of Tata Steel

------------------- in Rs. Cr. ------------------Mar '05 Mar '06 Mar '07 Mar '08 12 mths 12 mths 12 mths 12 mths

Mar '09 12 mths

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

553.67 553.67 580.67 553.67 553.67 580.67 0.00 0.00 147.06 0.00 0.00 0.00 6,506.25 9,201.63 13,368.42 0.00 0.00 0.00 7,059.92 9,755.30 14,096.15 2,468.18 2,191.74 3,758.92 271.52 324.41 5,886.41 2,739.70 2,516.15 9,645.33 9,799.62 12,271.45 23,741.48 Mar '05 Mar '06 Mar '07 12 mths 12 mths 12 mths

6,203.30 730.78 0.00 5,472.52 21,097.43 0.00 27,300.73 3,520.58 14,501.11 18,021.69 45,322.42 Mar '08 12 mths

6,203.45 730.79 0.00 5,472.66 23,501.15 0.00 29,704.60 3,913.05 23,033.13 26,946.18 56,650.78 Mar '09 12 mths

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 Contingent Liabilities Book Value (Rs)

13,085.07 15,407.17 16,029.49 16,479.59 20,057.01 5,845.49 6,699.85 7,486.37 8,223.48 9,062.47 7,239.58 8,707.32 8,543.12 8,256.11 10,994.54 1,872.66 1,157.73 2,497.44 4,367.45 3,487.68 2,432.65 4,069.96 6,106.18 4,103.19 42,371.78 1,872.40 2,174.75 2,332.98 2,604.98 3,480.47 581.82 539.4 631.63 543.48 635.98 246.68 288.35 446.51 465 463.58 2,700.90 3,002.50 3,411.12 3,613.46 4,580.03 2,234.96 1,994.46 4,025.95 34,582.84 5,884.61 0.04 0.04 7,234.84 0.04 1,127.02 4,935.90 4,997.00 14,671.91 38,196.34 11,591.66 0 0 0 0 0 4,247.43 4,552.39 6,349.24 6,842.26 8,965.76 2,648.56 2,361.44 1,930.46 2,913.52 2,934.19 6,895.99 6,913.83 8,279.70 9,755.78 11,899.95 -1,960.09 -1,916.83 6,392.21 28,440.56 -308.29 214.82 253.27 202.53 155.11 105.07 9,799.62 12,271.45 23,741.48 45,322.42 56,650.78 2,983.05 127.56 3,872.34 176.26 7,185.93 240.31 9,250.08 12,188.55 298.78 331.68

Profit & Loss account of Tata Steel

------------------- in Rs. Cr. ------------------Mar '05 Mar '06 Mar '07 12 mths 12 mths 12 mths

Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses

15,867.62 17,136.92 19,756.84 1,377.92 2,004.83 2,304.18 14,489.70 15,132.09 17,452.66 108.75 252.58 362.12 289.55 104.91 82.47 14,888.00 15,489.58 17,897.25 4,578.43 4,766.44 5,762.42 778.3 897.57 1,027.84 1,291.00 1,351.51 1,454.83 1,440.72 1,466.83 1,561.40 259.74 255.93 244.92 679.86 727.12 805.99 -204.82 -112.62 -236.02 8,823.23 9,352.78 10,621.38 Mar '05 Mar '06 Mar '07 12 mths 12 mths 5,884.22 6,136.80 168.44 5,968.36 775.1 0 5,193.26 47.5 5,240.76 1,734.38 3,506.38 4,586.34 0 719.51 100.92 5,534.73 63.35 130 176.26 12 mths 6,913.75 7,275.87 251.25 7,024.62 819.29 0 6,205.33 57.29 6,262.62 2,040.47 4,222.15 4,858.96 0 943.91 160.42 5,804.73 72.74 155 240.31

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)

5,956.02 6,064.77 228.8 5,835.97 618.78 0 5,217.19 80.79 5,297.98 1,823.82 3,474.16 4,244.80 0 719.51 101.86 5,534.73 62.77 130 127.56

r. ------------------Mar '08 12 mths

Mar '09 12 mths

22,191.43 26,843.53 2,537.02 2,495.21 19,654.41 24,348.32 586.41 603.07 38.73 289.27 20,279.55 25,240.66 6,063.53 8,568.71 1,038.77 1,222.48 1,589.77 2,305.81 1,654.96 2,127.48 247.77 400.24 1,029.30 1,180.08 -175.5 -343.65 11,448.60 15,461.15 Mar '08 Mar '09 12 mths 8,244.54 8,830.95 929.03 7,901.92 834.61 0 7,067.31 0 7,067.31 2,380.28 4,687.03 5,385.07 22.19 1,168.93 202.43 7,305.84 63.85 160 298.78 12 mths 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 7,305.92 69.7 160 331.68

RATIO ANALYSIS a)PROFITABILITY RATIOS 1-PROFIT MARGIN YEAR 2005 2006 2007 2008 2009

PROFIT MARGIN PROFIT after TAX 21.89465087 3,474.16 20.46096965 3,506.38 21.37057343 4,222.15 21.12090118 4,687.03 19.37800282 5,201.74

SALES 15,867.62 17,136.92 19,756.84 22,191.43 26,843.53

2-RETURN ON EQUITY YEAR 2005 2006 2007 2008 2009

ROE 3.305691471 4.455577717 5.600064519 4.823639053

PROFIT AFTER TAX AVG. SHAREHOLDER'S EQUITY 3,474.16 3,506.38 1060.71 4,222.15 947.61 4,687.03 836.96 5,201.74 1078.385

3-EARNINGS PER SHARE YEAR 2005 2006 2007 2008 2009

EPS 62.7701803 63.35232252 72.73637189 64.15456676 71.19897289

PROFIT AFTER TAX AVG. NO. OF EQUITY SHARES(la 3,474.16 5,534.73 3,506.38 5,534.73 4,222.15 5,804.73 4,687.03 7,305.84 5,201.74 7,305.92

b)LIQUIDITY RATIOS 1-CURRENT RATIO YEAR 2005 2006 2007 2008 2009

CR 0.635890409 0.659543668 0.537248553 0.528109134 0.510835668

CURRENT ASSETS CURRENT LIABILITIES 2,700.90 4,247.43 3,002.50 4,552.39 3,411.12 6,349.24 3,613.46 6,842.26 4,580.03 8,965.76

2-QUICK RATIO YEAR 2005 2006 2007 2008 2009

QUICK RATIO QUICK ASSETS CURRENT LIABILITIES 0.19505913 828.50 4,247.43 0.181827567 827.75 4,552.39 0.16980615 1,078.14 6,349.24 0.147389897 1,008.48 6,842.26 0.12263991 1,099.56 8,965.76

3-DEBTOR TURNOVER RATIO YEAR 2005 2006 2007 2008 2009

DTR 106.8670528 93.44013086 278.2653521 129.0199419 84.51194786

SALES 15,867.62 17,136.92 19,756.84 22,191.43 26,843.53

AVG. DEBTORS 148.48 183.4 71 172 317.63

c)SOLVENCY RATIOS 1-D/E YEAR 2005 2006 2007 2008 2009

D/E=DEBT/EQUITY DEBT 4.948254375 4.544494013 16.6106911 24.66089658 36.87267204

2,739.70 2,516.15 9,645.33 18,021.69 26,946.18

EQUITY 553.67 553.67 580.67 730.78 730.79

2-INTEREST COVER YEAR 2005 2006 2007 2008 2009

INT.COVER 26.50686189 36.43315127 28.95868657 9.505559562 6.565632763

PBIT 6,064.77 6,136.80 7,275.87 8,830.95 9,779.51

INT.EXPENSE 228.8 168.44 251.25 929.03 1,489.50

d)EFFICIENCY RATIOS

1-ASSET TURNOVER YEAR 2005 2006 2007 2008 2009

ASSET TURNOVER SALES 1.619207684 1.396486968 0.832165476 0.489634711 0.473842196

15,867.62 17,136.92 19,756.84 22,191.43 26,843.53

AVG.TOTAL ASSETS 9,799.62 12,271.45 23,741.48 45,322.42 56,650.78

2-INVENTORY TURNOVER RATIO YEAR 2005 2006 2007 2008 2009 ITR 0.170903653 0.178995287 0.311129971 0.374075809 0.168856505 COGS 320 389.27 725.86 974.46 587.7 AVG.INVENTORIES 1,872.40 2,174.75 2,332.98 2,604.98 3,480.47

AVG. SHAREHOLDER'S EQUITY

AVG. NO. OF EQUITY SHARES(lakhs)

CURRENT LIABILITIES

CURRENT LIABILITIES

total current assets inventory 2,700.90 1,872.40 3,002.50 2,174.75 3,411.12 2,332.98 3,613.46 2,604.98 4,580.03 3,480.47

AVG. DEBTORS

INT.EXPENSE

AVG.TOTAL ASSETS

AVG.INVENTORIES

FINANCIAL RATIOS Ratio Analysis

Asset Turnover is very good In last four years the assets were utilized to the fullest but in the last year due to less demand, it Debt Equity Ratio

Tata Steel over the years has been increasing its debt in order to finance the Corus deal. They took a loan of $ 8 Billion from t Current Ratio The current ratio is a financial ratio that measures whether or not the firm has enough resources to pay its debts over the nex Debtors Turnover Ratio The stakeholders of the company like distributors and suppliers have a lot of confidence in the company. This shows the cred

EPS RATIO EPS is the reported profit over the number of shareholders in the company. In the last 5 years EPS has doubled from 61 to 72 P/E RATIO P/E RATIO IS expected to double in 2010 because of higher profitability and dividend payouts in the previous years. Current Ratio

The current ratio is a financial ratio that measures whether or not the firm has enough resources to pay its debts over the nex

Debtors Turnover Ratio The stakeholders of the company like distributors and suppliers have a lot of confidence in the company. This shows the cred P/E RATIO P/E RATIO IS expected to double in 2010 because of higher profitability and dividend payouts in the previous years.

Operating expenses are expected to increase marginally resulting in increase of EBITDA margin of 38.7%.But compared to pre

ROCE over the years has reduced because of slowdown as well as huge inventories of stock and new plants introduced in Jam

year due to less demand, it reduced by 1, but in overall terms it is optimally used all resources.

k a loan of $ 8 Billion from the bank to acquire Corus.

to pay its debts over the next 12 months. It compares a firm’s current assets to its current liabilities. Tata Steel has a high amount of unut

mpany. This shows the creditworthiness and brand value of the company. Since debtors are paying back in comparatively less number of

S has doubled from 61 to 72 and it is expected to reach 74 in FY10.

he previous years.

to pay its debts over the next 12 months. It compares a firm’s current assets to its current liabilities. Tata Steel has a high amount of unut

mpany. This shows the creditworthiness and brand value of the company. Since debtors are paying back in comparatively less number of

he previous years. 38.7%.But compared to previous year the EBITDA/Turnover has reduced because the profits were higher than last years.

ew plants introduced in Jamshedpur.

a Steel has a high amount of unutilized current assets. The company has high level of inventory or WIP. Since the demand for steel has re

k in comparatively less number of days shows faster movement of goods in the market.

a Steel has a high amount of unutilized current assets. The company has high level of inventory or WIP. Since the demand for steel has re

k in comparatively less number of days shows faster movement of goods in the market.

er than last years.

Since the demand for steel has reduced drastically the company is having huge inventory and because of this the liquid ratio is low.

Since the demand for steel has reduced drastically the company is having huge inventory and because of this the liquid ratio is low.

f this the liquid ratio is low.

f this the liquid ratio is low.



doc_827425217.xlsx
 

Attachments

Back
Top