ANALYSIS OF

STEEL
INDUSTRY
Industry Overview
 Steel consumption in India

 Production of steel in India

Major Players
Installed Capacity (In mmt)

Sail
26%
Others
35%

JSW
Essar 13%
8%
RINL Tata Steel
5% 13%

Sail JSW Tata Steel RINL Essar Others

SAIL
years Mar 10 Mar 09 Mar 08 Mar 07 mar06
Sales(Rs
Cr) 40,547.82 43,798.58 39,958.67 34,328.77 28,200.48
Var % -7.42 9.61 16.40 21.73 0

sales (Rs Cr)

50,000.00
45,000.00
40,000.00
35,000.00
30,000.00
sales (Rs Cr)
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
0.00
Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
 SAIL
Years Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
EPS
(Rs) 16.35 14.95 18.25 15.02 9.72

EPS (Rs)
20
18
16
14
12
EPS (Rs)
10
8
6
4
2
0
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Years
Nett profit margin
(%) 16.39 13.4 18.16 17.38 13.79

net profit margin (%)

20

18

16

14

12
net profit margin (%)
10

0
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Years

Debt/Equity 0.49 0.26 0.13 0.24 0.34

Debt/Equity
0.6

0.5

0.4
Debt/Equity
0.3

0.2

0.1

0
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Years

Investments(Rs Cr) 668.83 652.7 538.2 513.79 292

investments(Rs Cr)
800

700

600

500
investments(Rs Cr)
400

300

200

100

0
Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Technical Chart
TATA STEEL
Years Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sales (Rs Cr) 24,940.65 24,348.32 19,654.41 17,452.66 15,132.09

Var % 2.43 23.88 12.62 15.34 0

sales (Rs Cr)

30,000.00

25,000.00

20,000.00
sales (Rs Cr)
15,000.00

10,000.00

5,000.00

0.00
Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
 Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Years

EPS (Rs) 63.35 72.74 63.85 69.7 56.37

EPS (Rs)
80

70

60

50
EPS (Rs)
40

30

20

10

0
Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
 Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Years

Net Profit
Margin(%) 19.96 21.09 23.43 23.53 22.78

Net Profit Margin(%)

24

23

22

Net Profit Margin(%)

21

20

19

18
Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
 Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Years

Debt /Equity 0.68 1.34 1.08 0.69 0.26

Debt/Equity
1.6

1.4

1.2

1
Debt/Equity
0.8

0.6

0.4

0.2

0
Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
 Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Years
Investments (Rs
Cr) 44,979.67 42,371.78 4,103.19 6,106.18 4,069.96

investments (Rs Cr)

50,000.00
45,000.00
40,000.00
35,000.00
30,000.00
investments (Rs Cr)
25,000.00
20,000.00
15,000.00
10,000.00
5,000.00
0.00
Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Technical Chart
JSW STEEL
Years Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06

Sales (Rs Cr) 18,167.46 14,006.59 11,391.05 8,595.03 6,092.39

% Var 29.71 22.96 32.53 41.08 0

sales (Rs Cr)

20,000.00
18,000.00
16,000.00
14,000.00
12,000.00
sales (Rs Cr)
10,000.00
8,000.00
6,000.00
4,000.00
2,000.00
0.00
Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
 Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Years

EPS (Rs) 106.59 22.96 90.84 77.09 53.28

EPS (Rs)
120

100

80
EPS (Rs)
60

40

20

0
Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
 Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Years
Net Profit
Margin(%) 11.09 3.23 14.92 14.98 14.14

Net Profit Margin(%)

16

14

12

10
Net Profit Margin(%)
8

0
Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
 Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Years

Debt/Equity 1.26 1.51 1.06 0.84 1.07

Debt/Equity
1.6

1.4

1.2

1
Debt/Equity
0.8

0.6

0.4

0.2

0
Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
 Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Years

Investments (Rs Cr) 1,768.35 1,250.11 923.53 192.94 85.08

Investments (Rs Cr)

2,000.00

1,800.00

1,600.00

1,400.00

1,200.00
Investments (Rs Cr)
1,000.00

800.00

600.00

400.00

200.00

0.00
Mar-10 Mar ' 09 Mar ' 08 Mar ' 07 Mar ' 06
Technical Chart