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TATA STEEL LTD.

The Tata Iron and Steel Company Limited was formed in 1907 at Mumbai. It is India’s largest integrated steel player in the private sector and the world’s seventh largest steel producer with an annual crude steel capacity of around 30 million tonnes per annum (mtpa). It manufactures hot and cold rolled coils and sheets, galvanized sheets, tubes, wire rods, construction rebars, rings and bearings. Apart from India, the company operates through its major subsidiaries on a consolidated basis – Europe (Corus) and South-East Asia (NatSteel & Thailand). In India the company has manufacturing facilities at Jharkhand, Chhattisgarh, Orissa, West Bengal and Tamil Nadu. It has operations in 26 countries and commercial presence in over 50 countries with over 81,000 employees.

Parent Company Category Sector Tagline/ Slogan

Tata Group Iron & steel Industrial products Values stronger than steel The top ten global steel companies with an annual crude steel capacity of over 28 million

USP

tonnes per annum Strip & long Steel products, Iron ore mining,

Segment

Agricultural implements Construction, automotive, infrastructure,

Target Group

capital goods The global steel industry benchmark for

Positioning

value creation and corporate citizenship.

coal tar. and flat .BOARD OF DIRECTORS Chairman Emeritus Chairman Director Ratan N Tata Cyrus P Mistry Nusli Ishaat Subodh Jacobus Andrew Robb N Wadia Hussain Bhargava Schraven Company Secretary Managing Director Vice Chairman Additional Director A Anjeneyan H M Nerurkar B Muthuraman Mallika Srinivasan D K Mehrotra Executive Director & CFO Koushik Chatterjee PRODUCTS Rails Heavy structural’s Tin bars Billets Scalp and strip Fishplates Plates Sleeper bars Sheet bars Special steels Bars Black sheets Sleepers Wheels Wire products Light structural’s Galvanised sheets Blooms Tyres and axles Long products Tools such as picks. beaters. etc. hammers and shovels and red-oxide. sulphate of ammonia.

696 Sales • Overall sales at 7. SAIL 2.837 5.857 6.48 million tonnes grew by 13% over last year (6. • Due date performance (which measures delivery compliance) was sustained at 96%in Flat products and improved from 96% to 98% in Long products.063 FY 12 33. NatSteel Holding and Tata Steel Thailand were higher by 13%.Deliveries of Tata Steel India. Essar Steel Ltd 4.63 milliontonnes in the Financial Year 2011-12).933 9.1 million tonnes . Tata Steel India FY 13 Turnover Profit before tax (PBT) Profit after tax (PAT) 38.199 7. ArcelorMittal 5. . The deliveries in Tata Steel India were higher by almost a million tonnes compared to the previous year due to the commissioning of the new capacity expansion in Jamshedpur. 7% and 3% respectively. whereas deliveries at Tata Steel Europe were lower by 7% as compared to the previous year. POSCO TATA STEEL GROUP OPERATIONS Tata Steel Group deliveries at 24.COMPETITORS 1. JSW Steel Ltd 3. 1.

FINANCE In the context of the difficult macro-economic environment. FINANCIAL PERFORMANCE BALANCE SHEET (Rs.(a) non-convertible debentures worth " 1.16 million tonnes. the Company adopted a financing strategy for the year focused on two key components .74 million tonnes in the Financial Year 2011-12).644 crores as of 31st March. comprising cash & cash equivalents and undrawn lines) and (b) sustenance of leverage pressures on account of increasing volumes and capital expenditure requirements in India. • The division achieved the best ever sales performance inTata Shaktee GC sheetsand Durashine (0.000 crores carrying a coupon of 9.26 million tonnes). 2013.500 crores carrying a coupon of 2% with redemption premium for a tenor of 10 years on a private placement basis in April 2012 and (b) non-convertible unsecured debentures worth " 1. The Company also issued two series of debentures . • The division achieved the highest ever annual sales ofTata Tiscon in the retailsegment at 1.99 million tonnes increased by 3% in theFinancial Year 2012-13 (2.15% repayable in equal instalments in January 2019 and January 2021.90 million tonnes in the Financial Year 2011-12). in Crores) Particulars SOURCES FUNDS : Of Mar-13 Mar-12 Mar-11 Mar-10 Mar-09 Mar-08 .(a) maintenance of a liquidity buffer for continued global operations (the total liquidity headroom of the company was " 16.Flat Products • The sales of Flat products at 4.49 million tonnes increased by 20% in theFinancial Year 2012-13 (3. Long Products • The sales of Flat Products at 2.

914.59 10.962.4 4 3.6 3 11.7 9 Total Liabilities 82.485.47 24.366.01 Capital Work in 8.4 2 Total Debt 27.245.41 51.94 4.Share Capital Reserves Total 971.21 133.19 11.257.2 6 0.29 Progress Investments .00 3.480.203.9 4 44.875.76 3.367.8 0 Current Loans Advances Inventories 5.00 16.077.913.209.58 14.05 23.858.5 6 20.300.75 3.8 6 22.282.30 106.046.0 2 46.30 21.201.388.45 8.00 5.067.4 6 959.176.7 8 26.953.501.123.322.4 3 887.238.00 3.843.519.02 25.41 36. & 50.7 5 50.00 16.68 0.259.2 6 10.7 1 2.1 8 57.172.972.7 3 Total Shareholders Funds Secured Loans Unsecured Loans 55.3 9 36.471.47 100.00 11.604.097.20 126.99 3.6 5 23.9 1 Less Accumulated Depreciation Less:Impairmen t of Assets Net Block 24.564.021.612.2 6 6.1 2 75.722.946.520.5 5 2.805.8 1 30.239.0 5 Lease Adjustment 0.766.8 0 6.301.4 4 0.1 0 0.033.418.291.717.216.531.915.994.18 26.0 0 3.45 23.979.7 8 4.487.846.057.8 8 25.9 4 28.5 4 0.1 1 18.07 100.5 2 46.122.162.203.256.2 7 971.41 54.47 : 13.371.6 8 2.0 1 8.32 22.7 7 1.036.306.074.0 7 10.103.28 12.00 4.98 Assets.1 3 26.479.009.11 137.4 3 27.0 5 52.979.961.4 7 APPLICATION OF FUNDS : Gross Block 38.037.5 9 8.507.2 5 78.47 2.1 7 22.6 7 42.6 9 45.2 0 62.807.256.41 45.986.

7 3 76.83 3.7 5 36.41 3.74 -970.590.99 1.Sundry Debtors Cash and Bank Loans Advances Total Assets Less : Current and 796.80 80.73 -681.172.4 4 Liabilities Provisions Current Liabilities 11.87 6.52 9.34 29.348.448.2 3 12.128.46 Tax 3.04 33.247.449.987.36 6.017.019.865.739.990.820.33 1.002.01 57.722.823.27 1.596.073.02 .38 12.219.905.43 Current 12.92 2.61 2.30 1.061.51 -936.861.178.293.1 5 4.07 155.003.656.78 2.756.834.544.039.21 2.48 465.39 3.843.26 9.6 0 11.604.60 5.950.234.02 4.984.125.0 1 0.89 635.00 0.321.0 1 Provisions Total 1.00 0.2 7 -403.846.250.02 3.211.78 45.892.962.328.67 -585.25 1.849.67 68.865.306.62 3.00 105.615.546.34 424.14 5.22 749.113.6 1 10.11 Tax 1.032.34 63.138.9 4 and 2.85 9.78 6.87 2.79 9.108.122.87 2.503.00 0.6 8 3.046.895.57 1.08 3.921.346.63 Current 11.07 1.82 7.67 5.70 543.096.59 1.4 0 15.0 7 2.89 7.2 5 4.54 Contingent Liabilities 6.26 Deferred -1.946.11 904.2 7 Liabilities Net Assets Miscellaneous Expenses written off Deferred Assets Deferred Liability Net Tax Total Assets not Current -1.893.365.67 434.5 4 4.218.98 1.80 -867.58 1.

04 8.11 1.199.396.315.52 19.10 1.370.89 2.00 1.397.79 10.214.173.35 3.92 15. in Crores) Particulars 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 Administration Expenses Miscellaneous Expenses Less: Pre.830.32 2.068.195.93 951.04 1.238.72 1.495.791.83 1.48 1.617.00 929.55 4.97 651.03 1.848.005.44 220.25 2.611.24 37.16 3.01 973.743.793.240.640.08 3.735.11 1.21 1.60 1.757.11 343.00 11.51 289.44 9.51 1.113.289.40 35.551.038.658.836.117.900.74 8.776.73 22.71 15.115.876.289.837.48 2.934.30 1.43 33.21 12.58 -134.46 3.37 6.003.79 1.53 914.50 8.083.048.510.13 478.36 2.833.998.30 20.18 7.61 2.85 2.072.222.876.71 31.686.29 1.65 175.902.176.82 2.489.19 9.778.00 .295.06 1.98 24.537.19 1.80 26.21 2.252.02 Mar-13 Mar-12 Mar-11 Mar-10 Mar-09 Mar-08 38.857.933.317.41 18.77 9.45 26.70 1.990.PROFIT &LOSS (Rs.78 1.510.923.41 3.087.78 326.567.008.65 1.75 12.49 2.08 38.146.608.81 3.99 3.558.836.27 975.38 7.35 25.10 2.61 7.746.347.44 2.34 11.193.509.14 1.98 1.52 5.67 9.87 2.00 8.82 1.14 26.934.40 7.066.31 10.189.164.021.30 6.73 39.20 42.46 29.94 5.223.17 3.74 10.59 25.424.151.652.476.330.65 22.79 11.666.88 3.518.23 198.857.353.26 4.803.50 2.278.97 834.735.45 173.60 1.03 7.843.70 1.925.42 1.080.047.29 2.348.145.681.62 30.663.21 and 4.505.34 operative Expenses Capitalised Total Expenditure Operating Profit Interest Gross Profit Depreciation Profit Before Tax Tax 28.383.297.37 404.354.555.

062.387.00 1.00 45.00 67.00 0.496.772.80 16.305.46 0.82 6.00 169.46 12.593.772.00 Balance 21.981.145.76 560.03 Net 5.34 1.387.145.70 6.00 66.496.93 0.42 0.85 4.46 4.334.168.092.98 brought forward Statutory Appropriations Appropriations P & L 1.51 338.33 4.06 776.69 0.24 4.79 67.402.783.13 2.46 0.50 5.00 0.97 -271.165.687.06 0.55 6.93 22.93 80.70 .17 -4.00 1.893.639.00 69.201.66 6.00 0.19 Earnings Per Share.00 54.00 54.34 603.35 Per 50.67 2.04 298.00 61.28 0.54 12.07 120.994.374.70 carried down Dividend Preference Dividend Equity Dividend % 80.95 220.97 0.65 9.53 6.00 0.168.45 1.60 Net 5.865.00 108.17 21.04 16.50 2.43 4.06 537.13 5.00 0.092.00 1.00 -75.16 624.696.97 160.00 0.639.46 12.50 312.Fringe Benefit tax Deferred Tax Reported Profit Extraordinary Items Adjusted Profit 0.88 1.00 120. below Net -179.00 709.79 Unit Curr Earnings Share(Adj)-Unit Curr Book Curr Value-Unit 568.97 66.046.00 Balance 24.151.16 6.421.31 Adjst.95 109.75 160.412.65 9.84 Profit P & L -174.75 61.00 2.04 16.616.74 19.45 416.93 54.016.53 487.77 45.07 69.50.

2 26.4 6.339.85 8.2 Mar-12 0.67 10.6 8.8 0.4 49.1 14.13 4.6 14.9 Mar-10 0.2 18.6 1.42 KEY RATIOS Years Debt-Equity Ratio Long Term Debt-Equity Ratio Current Ratio Fixed Assets Inventory Debtors Interest Cover Ratio PBIDTM (%) PBITM (%) PBDTM (%) CPM (%) APATM (%) ROCE (%) RONW (%) PE Mar-13 0.5 13.5 Mar-09 0.9 36.7 36.8 23.5 5.859.1 1.4 9.6 16.4 8.2 50.86 5.1 74.2 11.900.5 27. in Crores) Particulars Cash and Cash Equivalents at Begining of the year Net Cash from Operating Activities Net Cash Used In Investing Activities Net Cash Used In Financing Activities Net Inc/(Dec) In Cash And Cash Cash And Cash Equivalents At End Of The Year Mar-13 3.068.5 7.0 4.8 12.281.5 0.900.522.6 0.0 22.0 11.5 13.52 Mar-11 3.40 -4.096.7 6.4 32.0 Mar-11 0.7 1.084.4 34.4 8.191.9 23.735.00 -8.32 2.8 2.2 25.4 17.73 -201.99 3.1 16.6 30.8 29.3 6.53 -13.102.1 34.7 20.53 Mar-12 4.CASH FLOW (Rs.0 31.29 11.1 .1 1.4 9.11 -7.59 -1.21 -2.6 0.8 1.4 55.423.5 16.5 8.4 15.99 905.766.3 8.8 5.1 21.9 1.0 19.6 39.4 0.650.5 0.8 45.1 35.3 1.8 30.9 3.8 0.2 21.165.8 21.

3 69.0% INVESTMENTS FY 13 Investments in subsidiary.782 1.8 SHARE HOLDING PATTERN Shareholders Shareholding Promoters: Tata Group companies 31.EBIDTA DivYield PBV EPS 11.8 2.6 0.3 .223 856 1.419 FY 12 48.6 50.283 Change % 1.86% Others 07.9 1.8 0.2 2.145.204 50.28% Total 100.778.203 434 50.353.6 0.1 12.5 7.5 55.06% Foreign Institutional Investors 14.2 40.7 1.6 66.9 10.5 (64.8 12.7 1.0 9.36% GDRs 01.0) 0.9 67.09% Individual shareholders 21.934.3 1. JVs and associates Other investments Investment in mutual funds Total investments 48.658.35% Insurance Companies 24.

STRATEGY Tata Steel's strategy development and deployment has been aligned to its vision of becoming a global steel industry benchmark in value creation and corporate citizenship.625 crores against a plan of Rs 1. where it sees significant market opportunities. Tata Steel's strategy of improving operational excellence through focused improvement initiative achieved a savings of Rs 1. opportunities and threats posed by the business environment by developing appropriate risk mitigation measures.324 crores in the Financial Year 2012-13. The Group has commenced work to develop the 6. The Group completed the brown field expansion of its Jamshedpur facility in December 2012 that increased capacity by 2. Macro environment: During the Financial Year 2012-13 In India. the Company faced several challenges due to external market conditions as the key segments of automotive and capital goods were faced with slowdown and the performance of the Indian economy declined substantially during the year. the economy slowed down considerably with high interest rates impacting the consumption sectors and capital investments. . in two phases of 3. The Company also faced challenges on account of volatile exchange rates and demand slowdown in the economy. Tata Steel's response to these elements is discussed in the following section. HANDLING RISKS. The Group has obtained the necessary land and construction approvals for the first and second phase of this new steel plant in Odisha with financial closure already achieved for the first phase. In the Financial Year 2012-13. Growth Projects: The Group continues to pursue its growth strategy.057 crores in the Financial Year 2012-13. 1.0 mtpa green field steel plant in the state of Odisha.0 mtpa each.9million tonnes per annum (mtpa). 2. OPPORTUNITIES AND THREATS: Tata Steel Group aims to address risks. Its flagship initiative 'KVHS' (Kar Vijay Har Shikharconquer every peak) contributed Rs 1. particularly in the Indian market. India.

Tata Steel agreed to acquire the steel making operations of the Singapore based NatSteel for S$486. Forex. It paid US$ 73 million to Siam Cement for a 40% stake and offered to pay 1. Tata Steel Odisha Limited to be drawn over the next 5 years and to be repaid over a period of 12years.800 crores to the subsidiary company. In May 2013. Financing for the Odisha project was a specific risk to the Group given the volatility in the global financial markets and the availability of credit. Credit.500 crores worth of Non-Convertible Debentures during the year. Technology Risks: A key challenge of the Group is to ensure that its facilities are equipped with technologies that can produce value added products that are competitive in the market. In addition to this. Tata Steel has taken advantage of favourable credit and liquidity conditions by raising Rs 2. 4. The Group has foreign exchange hedging policies in place to protect its trading and manufacturing margins against rapid and significant foreign exchange movements. the Company achieved financial closure for its project in Odisha for which it contracted long-term Rupee borrowing aggregating to Rs 22. the Group operates in several currencies.  Millennium Steel in 2005: Tata Steel acquired a majority stake in the Thailand-based steelmaker Millennium Steel for a total cost of $130 million. Financing: Tata Steel Group's growth strategy is dependent on the internal cash generation levels and ability to draw external capital for growth projects. The Group's R&D efforts are oriented towards improvements in the existing process and product capability that can serve the customer better. 5. ACQUISTION  NatSteel in 2004: In August 2004. Volatility in the currency markets can adversely affect the outcome of commercial transactions and cause trading uncertainties. R&D efforts are also being made to advance the Group's proprietary knowledge in order to produce new generations of steel products.13 baht per share for another 25% of the shares of other shareholders. . Liquidity and Counterparty Risk: Through its global operations.4 million in cash.3.

India (Tata Steel signed a memorandum of understanding with the Chhattisgarh government in 2005. and  A 6 million tonne per annum capacity plant in Haveri. India from 6. EXPANSION PLANS Tata Steel has set a target of achieving an annual production capacity of 100 million tons by 2015.2 million tonnes). a 10. an expansion of the capacity of its plant in Jharkhand.4 million tonne per annum capacity plant in Bangladesh.    a 3 million tonne per annum capacity plant in Iran. Major greenfield steel plant expansion projects planned by Tata Steel include:   a 6 million tonne per annum capacity plant in Kalinganagar. NatSteel (2 million tonnes) and Millennium Steel (1. Tata Steel signed a deal with Anglo-Dutch company.2 million tonnes). Odisha. Corus to buy 100% stake at £4.3bn ($8.8 to 10 million tonnes per annum. Karnataka. it is planning for capacity expansion to be balanced roughly 50:50 between greenfield developments and acquisitions. Overseas acquisitions have already added an additional 21. . Corus in 2007: On 20 October 2006. NatSteel Asia Pte Ltd.5 million tonne per annum capacity plant in Vietnam (feasibility studies are underway). acquired controlling stake in two rolling mill companies located in Vietnam: Structure Steel Engineering Pte Ltd (100% stake) and Vinausteel Ltd (70% stake). a 2.  a 5 million tonne per annum capacity plant in Chhattisgarh. Tata plans to add another 29 million tonnes of capacity through acquisitions. including Corus (18. the plant is facing strong protest from tribal people). India.1 billion) at 455 pence per share.4 million tonnes of capacity.  2 Rolling mill companies in Vietnam in 2007: Tata Steel through its wholly owned Singapore subsidiary.

Government & regulatory norms 4. Control over raw materials 5. Direct iron ore smelting OPPORTUNITIES 2.SWOT ANALYSIS 1. Slightly lagging in technological front 1. Newer technologies. Africa etc.The Corex process. Economies of scale 6. 1. India is plagued with violent agitation against land acquisition 3. Excellent integration with Corus which has more than 2000 metallurgists 4. Public private partnership 3. Adaptability of company in the fast STRENGTH changing environment 3. Operations in 26 countries and a commercial presence in over 50 countries 1. Raises over 14 million tonnes of ores from its captive collieries. Operational efficiency are not as good as WEAKNESS international leaders 2. Rising coking coal prices THREATS 2. Strong backing of Tata brand name 7. iron ore mines and quarries 2. International competition . The Hismelt process. Acquisition of coal blocks in Asia.

2013: Sep 02. Tata Steel jumps on strong Q1 results . Tata Steel was awarded Deming Application Prize for excellence in Total Quality Management. COMPANY NEWS Oct 10.  In 2013. 2013: Tata Steel recovers on bargain hunting Tata Steel to pay Rs 180. 2013 : Oct 08. 2013: Sep 23. The company has previously been recognised by the Indian MAKE awards on six accounts since its inception in 2005. Tata Steel was ranked India's 7th most admired company by Fortune magazine. Tata Steel received the Most Admired Knowledge Enterprises (MAKE) award for 2012 at Global and Asian level.  It won the 'Golden Peacock' award in 2009 for its corporate social responsibility (CSR) initiatives.5 cr bonus in FY13 Tata Steel appoints T V Narendran as MD Tata Steel plans to increase 8.5 MT sales in India Aug 26. 2013: Aug 14. It was India's most admired company in 2012.03% in the June 2013 quarter. 2013: Sep 19.Awards and recognition  In 2013. 2013: Tata Steel may sell assets worth $1.2 bn Ind-Ra Maintains Tata Steel on Negative Outlook Sep 26.  In 2008. 2013: Tata Steel drops on profit booking Tata Steel net profit declines 0.