Description
PROJECT ON STEEL INDUSTRY
By: Kunal Sabharwal - 03 Saroja R -12 Sandeep Pawar -10
JINDAL STEEL
Financial Ratios Dividend Per Share Net Operating Profit Per Share (Rs) Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Return on Assets Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Coverage Ratio Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Dividend Payout Ratio Net Profit Formula Dividend Paid / No. of Equity Shares Net Operating Profit / No. of Equity Shares Operating Profit / Sales * 100 PBIT / Sales * 100 GP / Sales * 100 NP / Sales * 100 EBIT / Avg Total Cap. Employed * 100 EAT / Networth * 100 EAT / Avg Total Assets * 100 CA / CL QA / QL Total debt / Equity Long term debt / Equity EBIT / Interest COGS / Avg Inventory Credit Sales / Avg Debtors Total Dividend Paid / No. of Equity Shares * 100 Net profit available for Equity share holders / No. of Equity shares Mar'09 5.5 496.46 34.35 27.98 28.71 19.5 23.16 28.38 10.6 1.04 0.95 0.92 0.77 10.33 9.08 22.62 5.55 99.35 Mar'08 4 348.67 42.76 33.99 34.35 22.79 24.95 32.95 12.71 1.25 1.1 1.03 0.9 8.45 7.01 17.67 5.86 80.34 Mar'07 18 1,144.14 40.01 30.15 30.46 19.75 18.47 28.19 9.25 0.68 0.73 1.4 1.06 6.97 6.99 11.37 9.14 228.3
Earnings Per Share
JINDAL STEEL
Ratio Analysis
?Directors have recommended a final dividend of 550% i.e. Rs. 5.50 per equity which is 150% more as per compared to last year (2007-08) ?The GP/ NP ratio is less as on Mar 2009 as compared to last 2 year, it may be due to Increase in operating expenses or decrease in sales due to recession in the year 2008-09 ?Current ratio in the past 2 years indicates that the company is able to meet its working capital requirement & its Current obligations as compared to year 2006-07 as in 2006-07 The current asset ratio was 0.68
?Quick ratio which is also know as Acid test ratio here indicates that company is able to convert its current assets quickly into assets in order to cover its quick liabilities.
?The strength of the company is better credit management, less loans as compared to previous year and lower interest burden. It indicates good financial management ?Return on capital Employed is improving year after year which indicates that company is able to generate sufficient cash as compared to capital it has invested in business. ?Return on Assets indicates the capital intensity of the company, it shows how profitable a company’s assets are in generating revenue.
Ratio Analysis cont…
?Earning Per share indicates that how much profit was generated on a per share basis , EPS as on 2008-09 has increased by 23% as compared to last year. ?Cash from operating activities: Cash generated from operations less cash deployed in net Operating assets. ?Cash from financing activities: Sum of net cash from debt financing & non- strategic Investments.
BHUSHAN STEEL
Key Financial Ratios Investment Valuation Ratios Dividend Per Share Net Operating Profit Per Share (Rs) Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Return on Assets Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Dividend Payout Ratio Net Profit Earnings Per Share Formula ------------------- in Rs. Cr. ------------------Mar '09 Mar '08 Mar '07 2.5 1,173.89 21.93 17.16 17.22 8.42 8.34 20.77 3.47 1.06 0.92 3.98 3.75 15.02 4.75 8.06 2.94 99.2 2.5 984.24 19.98 14.86 14.92 10.09 8.72 26.07 4.81 0.76 0.88 3.52 2.84 10.95 4.4 7.23 2.93 99.77 2.5 901.68 16.4 10.89 15.12 8.14 9.81 25.79 5.8 0.81 1.07 2.67 2.15 6.81 5.09 8.12 3.96 73.76 Dividend Paid / No. of Equity Shares Net Operating Profit / No. of Equity Shares Operating Profit / Sales * 100 PBIT / Sales * 100 GP / Sales * 100 NP / Sales * 100 EBIT / Avg Total Cap. Employed * 100 EAT / Networth * 100 EAT / Avg Total Assets * 100 CA / CL QA / QL Total debt / Equity Long term debt / Equity EBIT / Interest COGS / Avg Inventory Credit Sales / Avg Debtors Total Dividend Paid / No. of Equity Shares * 100 Net profit available for Equity share holders / No. of Equity shares
Ratio Analysis
?The GP/ NP ratio is more as on Mar 2009 as compared to last 2 year, it may be due to decrease in operating expenses or increase in sales in the year 2008-09 ?Current asset ratio in the Mar 2009 - 1.06 indicates that the company is able to meet its working capital requirement . That means current liabilities are less than current assets as company has made so many provisions and less amt of current liabilities which is good for the financial health of the company. ?Quick ratio which is also know as Acid test ratio here indicates that company is able to convert Its current assets quickly into assets in order to cover its quick liabilities. In year 2009,Quick ratio, 0.92 which is better as compared to 0.88 in year 2008-07. ?Return on capital Employed is decreased in march 2009 & 2008 as compared to 2007-08 which indicates that company is not able to generate sufficient cash as compared to capital it has invested in business. It means each one rupee of capital employed in the business has earned 0.08 paise. ?Return on Assets indicates the capital intensity of the company, it shows how profitable a Company’s assets are in generating revenue. It is decreasing from last two year. ?Earning Per share indicates that how much profit was generated on a per share basis , EPS as on 2008-09 has increased by 34% as compared to 2007-2006.
BHUSHAN STEEL
Cash flow `--------------Rs in Cr.------------------
Mar ' 09
Profit before tax 560.79
Mar ' 08
538.93
Mar ' 07
372.37
Net cash flow-operating activity
Net cash used in investing activity Netcash used in fin. activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year
536.77
-1,806.13 1,366.10 96.74 27.63 124.37
438.57
-2,434.03 1,922.95 -72.51 100.14 27.63
353.09
-1,298.33 963.86 18.62 81.52 100.14
MUKAND STEEL
Financial Ratios Dividend Per Share Formula Dividend Paid / No. of Equity Shares Net Operating Profit / No. of Equity Net Operating Profit Per Share (Rs) Shares Profitability Ratios Operating Profit Margin(%) Operating Profit / Sales * 100 Profit Before Interest And Tax Margin(%) PBIT / Sales * 100 Gross Profit Margin(%) GP / Sales * 100 Net Profit Margin(%) NP / Sales * 100 Return On Capital Employed(%) EBIT / Avg Total Cap. Employed * 100 Return On Net Worth(%) EAT / Networth * 100 Return on Assets EAT / Avg Total Assets * 100 Liquidity And Solvency Ratios Current Ratio CA / CL Quick Ratio QA / QL Debt Equity Ratio Total debt / Equity Long Term Debt Equity Ratio Long term debt / Equity Debt Coverage Ratios Interest Coverage Ratio EBIT / Interest Management Efficiency Ratios Inventory Turnover Ratio COGS / Avg Inventory Debtors Turnover Ratio Credit Sales / Avg Debtors Dividend Payout Ratio Net Profit Total Dividend Paid / No. of Equity Shares * 100 Net profit available for Equity share Earnings Per Share holders / No. of Equity shares Mar'09 -264.7 0.18 -2.68 -2.8 -9.27 1.67 -41.79 -4.67 0.98 1.36 3.08 1.95 0.16 3.68 3.18 --25.62 Mar'08 1 263 13.14 9.86 10.13 3 12.72 9.33 2.1 1.24 1.46 2.03 1.37 1.59 3.39 3.45 14.4 8.12 Mar'07 1 247.82 14.61 11.25 9.49 5.03 14.85 15.42 4.03 2 1.89 1.77 1.55 1.93 3.73 3.5 9.17 12.76
MUKAND STEEL
Cash Flow of Mukand ------------------- in Rs. Cr. ------------------Mar '09 Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents -68.51 -44.27 -23.27 -223.68 98.83 -1.23 -19.50 -183.91 -41.30 -204.28 89.51 Mar '08 80.87 123.62 Mar '07 113.04 162.10
Opening Cash & Cash Equivalents
Closing Cash & Cash Equivalents
55.29
32.01
56.52
55.29
97.82
56.52
Ratio Analysis
?Directors does not recommended a final dividend per equity in year 2009 ,where as it was 1 last year 2007 & 08
?The GP/ NP ratio is less as on Mar 2009 as compared to last 2 year, it may be due to Increase in operating expenses or decrease in sales due to recession in the year 2008-09 ?Current ratio in 2009 indicates that the company is not able to meet its working capital requirement & its Current obligations as compared to year 2006-07 as in 2006-07 The current asset ratio was 2 & 1.24 respectively. ?Quick ratio which is also know as Acid test ratio here indicates that company is not comfortable when it comes to convert Its current assets quickly into assets in order to cover its quick liabilities. ?Return on capital Employed is deteriorating year after year which indicates that company is not able to generate sufficient cash as compared to capital it has invested in business. ?Return on Assets indicates the capital intensity of the company, Here it shows company is not able to generating revenue.
Ratio Analysis cont…
?Debtors Turnover Ratio is decreasing year by year, its an good sign for the company's prosper point of view. ?Earning Per share indicates that how much profit was generated on a per share basis ,EPS as on 2008-09 has decrease tremendously by 300 % as compared to last year. ?Net profit has been decreased in 2009 as compare to the previous two year this may be due to volatile market as well as recession around the world. ?Opening Cash & Cash Equivalents has been more or less same as compare to previous year. Company has invested same amount of cash as in 2007 due to market conditions. ?Closing Cash & Cash Equivalents has been decrease as compare to the previous two years this is not an good sign for an developing company.
doc_160613601.ppt
PROJECT ON STEEL INDUSTRY
By: Kunal Sabharwal - 03 Saroja R -12 Sandeep Pawar -10
JINDAL STEEL
Financial Ratios Dividend Per Share Net Operating Profit Per Share (Rs) Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Return on Assets Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Coverage Ratio Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Dividend Payout Ratio Net Profit Formula Dividend Paid / No. of Equity Shares Net Operating Profit / No. of Equity Shares Operating Profit / Sales * 100 PBIT / Sales * 100 GP / Sales * 100 NP / Sales * 100 EBIT / Avg Total Cap. Employed * 100 EAT / Networth * 100 EAT / Avg Total Assets * 100 CA / CL QA / QL Total debt / Equity Long term debt / Equity EBIT / Interest COGS / Avg Inventory Credit Sales / Avg Debtors Total Dividend Paid / No. of Equity Shares * 100 Net profit available for Equity share holders / No. of Equity shares Mar'09 5.5 496.46 34.35 27.98 28.71 19.5 23.16 28.38 10.6 1.04 0.95 0.92 0.77 10.33 9.08 22.62 5.55 99.35 Mar'08 4 348.67 42.76 33.99 34.35 22.79 24.95 32.95 12.71 1.25 1.1 1.03 0.9 8.45 7.01 17.67 5.86 80.34 Mar'07 18 1,144.14 40.01 30.15 30.46 19.75 18.47 28.19 9.25 0.68 0.73 1.4 1.06 6.97 6.99 11.37 9.14 228.3
Earnings Per Share
JINDAL STEEL
Ratio Analysis
?Directors have recommended a final dividend of 550% i.e. Rs. 5.50 per equity which is 150% more as per compared to last year (2007-08) ?The GP/ NP ratio is less as on Mar 2009 as compared to last 2 year, it may be due to Increase in operating expenses or decrease in sales due to recession in the year 2008-09 ?Current ratio in the past 2 years indicates that the company is able to meet its working capital requirement & its Current obligations as compared to year 2006-07 as in 2006-07 The current asset ratio was 0.68
?Quick ratio which is also know as Acid test ratio here indicates that company is able to convert its current assets quickly into assets in order to cover its quick liabilities.
?The strength of the company is better credit management, less loans as compared to previous year and lower interest burden. It indicates good financial management ?Return on capital Employed is improving year after year which indicates that company is able to generate sufficient cash as compared to capital it has invested in business. ?Return on Assets indicates the capital intensity of the company, it shows how profitable a company’s assets are in generating revenue.
Ratio Analysis cont…
?Earning Per share indicates that how much profit was generated on a per share basis , EPS as on 2008-09 has increased by 23% as compared to last year. ?Cash from operating activities: Cash generated from operations less cash deployed in net Operating assets. ?Cash from financing activities: Sum of net cash from debt financing & non- strategic Investments.
BHUSHAN STEEL
Key Financial Ratios Investment Valuation Ratios Dividend Per Share Net Operating Profit Per Share (Rs) Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Return on Assets Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Dividend Payout Ratio Net Profit Earnings Per Share Formula ------------------- in Rs. Cr. ------------------Mar '09 Mar '08 Mar '07 2.5 1,173.89 21.93 17.16 17.22 8.42 8.34 20.77 3.47 1.06 0.92 3.98 3.75 15.02 4.75 8.06 2.94 99.2 2.5 984.24 19.98 14.86 14.92 10.09 8.72 26.07 4.81 0.76 0.88 3.52 2.84 10.95 4.4 7.23 2.93 99.77 2.5 901.68 16.4 10.89 15.12 8.14 9.81 25.79 5.8 0.81 1.07 2.67 2.15 6.81 5.09 8.12 3.96 73.76 Dividend Paid / No. of Equity Shares Net Operating Profit / No. of Equity Shares Operating Profit / Sales * 100 PBIT / Sales * 100 GP / Sales * 100 NP / Sales * 100 EBIT / Avg Total Cap. Employed * 100 EAT / Networth * 100 EAT / Avg Total Assets * 100 CA / CL QA / QL Total debt / Equity Long term debt / Equity EBIT / Interest COGS / Avg Inventory Credit Sales / Avg Debtors Total Dividend Paid / No. of Equity Shares * 100 Net profit available for Equity share holders / No. of Equity shares
Ratio Analysis
?The GP/ NP ratio is more as on Mar 2009 as compared to last 2 year, it may be due to decrease in operating expenses or increase in sales in the year 2008-09 ?Current asset ratio in the Mar 2009 - 1.06 indicates that the company is able to meet its working capital requirement . That means current liabilities are less than current assets as company has made so many provisions and less amt of current liabilities which is good for the financial health of the company. ?Quick ratio which is also know as Acid test ratio here indicates that company is able to convert Its current assets quickly into assets in order to cover its quick liabilities. In year 2009,Quick ratio, 0.92 which is better as compared to 0.88 in year 2008-07. ?Return on capital Employed is decreased in march 2009 & 2008 as compared to 2007-08 which indicates that company is not able to generate sufficient cash as compared to capital it has invested in business. It means each one rupee of capital employed in the business has earned 0.08 paise. ?Return on Assets indicates the capital intensity of the company, it shows how profitable a Company’s assets are in generating revenue. It is decreasing from last two year. ?Earning Per share indicates that how much profit was generated on a per share basis , EPS as on 2008-09 has increased by 34% as compared to 2007-2006.
BHUSHAN STEEL
Cash flow `--------------Rs in Cr.------------------
Mar ' 09
Profit before tax 560.79
Mar ' 08
538.93
Mar ' 07
372.37
Net cash flow-operating activity
Net cash used in investing activity Netcash used in fin. activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year
536.77
-1,806.13 1,366.10 96.74 27.63 124.37
438.57
-2,434.03 1,922.95 -72.51 100.14 27.63
353.09
-1,298.33 963.86 18.62 81.52 100.14
MUKAND STEEL
Financial Ratios Dividend Per Share Formula Dividend Paid / No. of Equity Shares Net Operating Profit / No. of Equity Net Operating Profit Per Share (Rs) Shares Profitability Ratios Operating Profit Margin(%) Operating Profit / Sales * 100 Profit Before Interest And Tax Margin(%) PBIT / Sales * 100 Gross Profit Margin(%) GP / Sales * 100 Net Profit Margin(%) NP / Sales * 100 Return On Capital Employed(%) EBIT / Avg Total Cap. Employed * 100 Return On Net Worth(%) EAT / Networth * 100 Return on Assets EAT / Avg Total Assets * 100 Liquidity And Solvency Ratios Current Ratio CA / CL Quick Ratio QA / QL Debt Equity Ratio Total debt / Equity Long Term Debt Equity Ratio Long term debt / Equity Debt Coverage Ratios Interest Coverage Ratio EBIT / Interest Management Efficiency Ratios Inventory Turnover Ratio COGS / Avg Inventory Debtors Turnover Ratio Credit Sales / Avg Debtors Dividend Payout Ratio Net Profit Total Dividend Paid / No. of Equity Shares * 100 Net profit available for Equity share Earnings Per Share holders / No. of Equity shares Mar'09 -264.7 0.18 -2.68 -2.8 -9.27 1.67 -41.79 -4.67 0.98 1.36 3.08 1.95 0.16 3.68 3.18 --25.62 Mar'08 1 263 13.14 9.86 10.13 3 12.72 9.33 2.1 1.24 1.46 2.03 1.37 1.59 3.39 3.45 14.4 8.12 Mar'07 1 247.82 14.61 11.25 9.49 5.03 14.85 15.42 4.03 2 1.89 1.77 1.55 1.93 3.73 3.5 9.17 12.76
MUKAND STEEL
Cash Flow of Mukand ------------------- in Rs. Cr. ------------------Mar '09 Net Profit Before Tax Net Cash From Operating Activities Net Cash (used in)/from Investing Activities Net Cash (used in)/from Financing Activities Net (decrease)/increase In Cash and Cash Equivalents -68.51 -44.27 -23.27 -223.68 98.83 -1.23 -19.50 -183.91 -41.30 -204.28 89.51 Mar '08 80.87 123.62 Mar '07 113.04 162.10
Opening Cash & Cash Equivalents
Closing Cash & Cash Equivalents
55.29
32.01
56.52
55.29
97.82
56.52
Ratio Analysis
?Directors does not recommended a final dividend per equity in year 2009 ,where as it was 1 last year 2007 & 08
?The GP/ NP ratio is less as on Mar 2009 as compared to last 2 year, it may be due to Increase in operating expenses or decrease in sales due to recession in the year 2008-09 ?Current ratio in 2009 indicates that the company is not able to meet its working capital requirement & its Current obligations as compared to year 2006-07 as in 2006-07 The current asset ratio was 2 & 1.24 respectively. ?Quick ratio which is also know as Acid test ratio here indicates that company is not comfortable when it comes to convert Its current assets quickly into assets in order to cover its quick liabilities. ?Return on capital Employed is deteriorating year after year which indicates that company is not able to generate sufficient cash as compared to capital it has invested in business. ?Return on Assets indicates the capital intensity of the company, Here it shows company is not able to generating revenue.
Ratio Analysis cont…
?Debtors Turnover Ratio is decreasing year by year, its an good sign for the company's prosper point of view. ?Earning Per share indicates that how much profit was generated on a per share basis ,EPS as on 2008-09 has decrease tremendously by 300 % as compared to last year. ?Net profit has been decreased in 2009 as compare to the previous two year this may be due to volatile market as well as recession around the world. ?Opening Cash & Cash Equivalents has been more or less same as compare to previous year. Company has invested same amount of cash as in 2007 due to market conditions. ?Closing Cash & Cash Equivalents has been decrease as compare to the previous two years this is not an good sign for an developing company.
doc_160613601.ppt