FINAL RESEARCH PROJECT

ON
“Financial Analysis on Tata Steel and JSW Steel”

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIRMENTS

FOR THE
BACHELOR OF COMMERCE (B.COM)
OF
CHANDIGARH UNIVERSITY, GHARUAN, MOHALI
SUBMITTED TO: Ms Simranjeet Kaur SUBMITTED BY: JHANVI
BEHL

Name: (MS> Simranjeet Kaur) Student Name: Jhanvi Behl

Designation: UID: 19BCM1265
Chandigarh University Student Name: Shivanshu
Mahajan
UID: 19BCM1250
Student Name: Sukhman Kaur
UID: 19BCM1260

B.COM (Batch 2019-22)

CHANDIGARH UNIVERSITY

GHARUAN, MOHALI (PUNJAB)

 CERTIFICATE by the Supervisor

This is to certify that

1) “Jhanvi Behl ” - “19BCM1265”
2) “Shivanshu Mahajan” - “19BCM1250”
3) “Sukhman Kaur” - “19BCM1260”

of B.Com. 6th Semester has submitted Final Research Project on the topic entitled “Topic
Name” in partial fulfilment of the requirements for the award of Bachelor of Commerce
degree from Chandigarh University, Gharuan, Mohali in the session 2021-22.
The research work carried out by them under my supervision has been found satisfactory and
hereby approved for the submission.

Date: 13 May 2022 Signature of the Supervisor

(Ms. Simranjeet Kaur)
(Assistant Professor)
Department of Commerce
Chandigarh University, Gharuan, Mohali

ACKNOWLEDGEMENTS
I have taken efforts in the project. However, it would not
have been possible without the kind support and help of
money individuals and organizations. I would like to
extend my sincere thanks to all of them.
I am highly indebted to Ms. Simranjeet Kaur (Assistant
Professor) for their guidance and consultant supervision
as well as providing necessary information regarding the
project and also for their support in completing the
project.
I would like to express my gratitude towards my parents
and member of University School of Commerce for their
kind cooperation and encouragement which help me in
completion of this project.
I would like to express my special gratitude and thanks to
industry persons for giving me such attention and time.
My Thanks and appreciations also go to my colleagues in
developing the project and people who have willingly
helped me out with their abilities.
 DECLARATION
I herby declare that the project work entitled Ratio
analysis used to comparative study of the financial
statement analysis of Tata Steel and JSW Steel submitted
to the Chandigarh University, is a record of an original
work done by me under the guidance of Ms. Simranjeet
Kaur (Assistant Professor), Faculty Member of University
School of Commerce and this project work has not
performed on the basis for the award of any degree or
Diploma/ associate ship/ fellowship and similar project if
any.

Jhanvi Behl Shivanshu Mahajan Sukhman Kaur

19BCM1265 19BCM1250 19BCM1260
 BRIEF INTRODUCTION OF TATA STEEL
Tata Steel Limited is an Indian multinational steel -making company, based
in Jamshedpur and headquartered in Mumbai. It is a part of the Tata Group.
Formerly known as Tata Iron and Steel Company Limited (TISCO), Tata
Steel is among the top steel producing companies in the world with an annual
crude steel capacity of 34 million tonnes per annum. It is one of the world's
most geographically-diversified steel producers, with operations and
commercial presence across the world. The group (excluding SEA operations)
recorded a consolidated turnover of US$19.7 billion in the financial year ending
31 March 2020. It is the second largest steel company in India (measured by
domestic production) with an annual capacity of 13 million tonnes after Steel
Authority of India Ltd. (SAIL).
The Key Managerial Personnel (KMP) at Tata Steel Limited India are Koushik
Chatterjee as CFO(KMP) and Parvatheesam Kanchinadham as COMPANY
SECRETARY. Koushik Chatterjee, Mallika Srinivasan, Chandrasekaran
Natarajan and 7 other members are presently associated as directors.
Tata Steel operates in 26 countries with key operations in India, Netherlands
and The United Kingdom, and employs around 80,500 people. Its largest plant
(10 MTPA capacity) is located in Jamshedpur, Jharkhand. In 2007, Tata Steel
acquired the UK-based steel maker Corus. It was ranked 486th in the
2014 Fortune Global 500 ranking of the world's biggest corporations. It was the
seventh most valuable Indian brand of 2013 according to Brand Finance.
In July 2019 Tata Steel Kalinganagar (TSK) was included in the list of
the World Economic Forum 's (WEF's) Global Lighthouse Network.
Tata Steel has been recognised amongst India’s Best Workplaces in
Manufacturing 2022 by Great Place to Work. This recognition has been
received for the fifth time, highlights company’s sustained focus on fostering a
culture of high-trust, integrity, growth, and care for the employees. Tata Steel
has also been inclusive towards its LGBTQ employees and also provides health
insurance benefits for partners of its LGBTQ employees under the new HR
policy.

HISTORY
Tata Iron and Steel Company (TISCO) was founded by Jamsetji
Nusserwanji Tata and established by Sir Dorabji Tata on 26 August
1907. TISCO started pig iron production in 1911 and began producing
steel in 1912 as a branch of Jamsetji's Tata Group. The first steel ingot
was manufactured on 16 February 1912. During the First World War
(1914–1918), the company made rapid progress.
In 1920, The Tata Iron & Steel Company also incorporated The Tinplate
Company of India LTD, as a joint venture with then Burmah Shell to
manufacture Tinplate. TCIL is now Tata Tinplate and holds 70% market
share in India.
By 1939, it operated the largest steel plant in the British Empire. The
company launched a major modernisation and expansion program in
1951. Later, in 1958, the program was upgraded to 2 million metric
tonnes per annum (MTPA) project. By 1970, the company employed
around 40,000 people at Jamshedpur, and a further 20,000 in the
neighbouring coal mines.[14]
Nationalisation attempts
There were two attempts one in 1971 and another in 1979, nationalise
the company. Both were unsuccessful attempts. In 1971 Indira Gandhi
regime tried to nationalise the company, but failed. In 1979 Janata Party
regime (1977–79), wanted to nationalise TISCO (now Tata Steel). Then
Minister for Industries George Fernandes, at the instigation of Biju
Patnaik, Minister for Steel threatened nationalisation, but due to the
unions protests the move failed.
In 1990, the company began to expand, and established its subsidiary,
Tata Inc., in New York. The company changed its name from TISCO to
Tata Steel Ltd. in 2005.

JSW STEEL
The flagship company of JSW Group, JSW Steel is one of India’s leading
integrated steel manufacturers with a capacity of 18 MTPA. It is one of the
fastest growing companies in India with a footprint in over 100 countries. With
state-of-the-art manufacturing facilities located in Karnataka, Tamil Nadu and
Maharashtra, it is recognized for its innovation and quality.
JSW offers a wide gamut of steel products that includes Hot Rolled, Cold
Rolled, Bare & Pre-painted Galvanized & Galvalume®, TMT Rebars, Wire
Rods and Special Steel.
JSW Steel continues to enhance its capabilities to meet the rapidly changing
global market needs. To stay on the leading edge of technical advancement,
JSW has entered into technological collaboration with JFE Steel Corp, Japan to
manufacture high strength and advanced high strength steel for the automobile
sector. JSW Steel has also entered into a joint venture with Marubeni-Itochu
Steel Inc. Tokyo, to set up a state–of-the-art steel processing centers. To
strengthen its global network, the Company has also acquired a Pipe and Plate
making steel mill in Baytown, Texas in USA. By end of next decade, JSW Steel
aims to produce 40 million tons of steel annually.

COMPARITIVE STUDY OF TATA STEEL AND JSW

This study is conducted purely based on secondary data obtained through
website of the specified private industry. By using the ratio analysis tool we can
analyze the performance of both the steel industries in India and we can easily
find out the strength and weakness of the companies and their position in the
market. Different ratios are used in this study and particularly those which are
related to the financial statement for this purpose balance sheet of year 2009-
2014 of both the industries are used and from then ratios are calculated so
according to which we can easily compare the company performance and tell
which company grows faster and whose position is better than the other one.
After comparing the financial position it is clear that position of Tata steels is
much better than the Jindal steels. Keywords: Balance sheet, Companies, Ratio
analysis, Steel Companies.
I. INTRODUCTION he steel sector in India is almost a century old, and
exhibits significant economic importance due to rising demand by
sectors such as infrastructure, real estate, and automobiles, in domestic
as well as international markets. The level of per capita consumption
of steel is an important determinant of the socio-economic
development of the country. The Indian steel industry is divided into
primary and secondary sectors. The primary sector comprises a few
large integrated steel providers producing billets, slabs and hot rolled
coils. The secondary sector involves small units focused on the
production of value-added products such as cold rolled coils,
galvanized coils, angles, columns, beams and other re-rollers, and
sponge iron units. Both sectors cater to different market segments. The
Indian steel industry has entered a new development stage since 2007–
08 and is riding on the resurgent economy and the growing demand
for steel. India‟s 33 per cent growth in steel production in the last five
years was second only to China among the top five steel producing
nations, according to data by World Steel Association (WSA). India is
the fourth largest producer of crude steel and the largest producer of
soft iron in the world. Presently, the Indian steel industry employs
around 500,000 people while the per capita consumption in 2013
stood at around 57.8kilograms. However, these figures are expected to
rise with increased industrialization throughout the country. China
remained the world‟s largest crude steel producer in 2014 (823 mt)
followed by Japan (110.7 mt), the USA (88.3 mt) and India (83.2 mt)
at the 4th position.
 II. II. CONCEPT OF WORKING CAPITAL ANALYSIS From the
financial management point of view, capital in broader sense can be
divided into two main categoriesfixed capital and working capital.
Here I am going to study the concept of working capital. The term
working capital generally is used in two senses – ‘Gross working
capital’ which denotes total current asset and ‘Net working Capital’
which denotes the excess of current assets over current liabilities. Both
the concepts have their own significance and relevance. In common
parlance, working capital is that part of capital, which is in working or
which is used to meet dayto-day expenses. To understand the exact
meaning of the term „Working Capital‟, it will be appropriate to
understand its two components – current assets and current liabilities.
The current assets are those assets, which can be converted into cash
within a short period of time, say not more than one year during the
operating cycle of business or without affecting normal business
operations. Current liabilities are such liabilities as are to be paid
within the normal business cycle a within the course of an accounting
year out of current assets. A. Gross working Capital Concept:-
According to the gross concept, working capital means total of all the
current assets of a business. It is also called gross working capital.
Gross working Capital = Total Current Assets B. Net Working Capital
Concepts: The concepts of Net Working Capital refer to the excess of
current assets over current liabilities. It indicates the surplus value of
current assets. Since, all the current liabilities are met out of current
assets and after meeting the current liabilities what remains in the
enterprise is called net working capital.
Net working capital will exist only in that case when longterm funds, to some
extent, are invested in current assets and comparatively less amount of short
term funds are involved in current assets.
III. COMPONENTS OF WORKING CAPITAL The working capital
consists of two components current assets and current liabilities.
Assets of a concern are of two types- Fixed assets and current assets:
Fixed assets are to be in business on permanent basis and are not
intended for sale whereas the current assets are for conversion into
cash at the earliest. Similar is the case with liabilities, which may be
long-term liabilities and current liabilities. Long-term liabilities are
those maturing over a long period of time usually five or ten years
whereas short-term liabilities are those maturing within a short period
usually less than a year.
IV. IV. CONCEPT OF PROFITABILITY ANALYSIS The third part of
financial performance analysis is profitability analysis. The analysis of
profitability is mainly a test of earning capacity of business. Profit is
 the lifeblood of every business unit. It is also very essential for the
survival of any business. The efficiency of management functioning is
also determined on the basis of the profitability of business. Profit is
also required for the longterm growth of the business. The profitability
analysis of selected units have been made while using various ratios
such as net profit ratio, return on capital employed ratio and return on
total asset ratio. This analysis is restricted to the above mentioned
ratio because the given data provides the information relating to these
ratios only. At last it can be said that the profitability analysis depicts
a clear and comparative position regarding the financial performance
of the selected units.
V. OBJECTIVES OF STUDY The present study “A comparative study
on Financial Performance of TATA STEELS and JSW STEEL LTD.”
Has been designed to achieve the following objectives:- 1. To study
the financial performance of Tata steel and Jindal steel. 2. To compare
the financial performance of Tata steel and Jindal steel
VI. VI. SCOPE OF THE STUDY The present study is confined to the
two leading units in steel industry namely JSW and TATA STEEL
LTD. The study covers a period of five years from 2009-10 to 2013-
14.
This period is enough to cover both the short and medium terms fluctuations
and to set reliability.
VII. DATA COLLECTION For completion of my study only secondary
data has been used. The main sources are annual reports. Besides for
framing conceptual framework, various books and published material
in standard books and newspapers, Journals and websites has been
used.
VIII. VIII. LIMITATIONS OF THE STUDY To know the extent to which
the study is reliable it is necessary to note the limitations under which
the study has been completed. The following important limitations
have been noted while conducting the present study:- 1) The main
source of information is annual reports. They represent financial
information/position on particular date. What happened between such
two dates cannot easily be presumed or predicated. 2) The annual
reports mostly contain quantitative and financial information and as
regards to qualitative aspect of financial performance, my source was
limited due to far away location of head offices of the selected units.
3) The financial performance covering a large period say 20 years or
30 years can give a much clear picture of management practices of
financial performance. Our study covering a period of 5 years can
touch only a part of the problem.
 IX. RESEARCH METHODOLOGY In this present study, an attempt
has been made to evaluate and compare the financial performance of
Tata steel and Jindal steel and both of the companies are related with
the private sector. The study is purely based on secondary data and the
details are collected through websites, magazines, and journals. The
time period of study is five years 2009 to 2014. Ratio analysis was
applied to analyze the performance of these companies.
X. FOLLOWING RATIOS ARE USED FOR THIS STUDY 1.
Current Ratio. 2. Quick Ratio. 3. Inventory Turnover Ratio. 4. Fixed
Assets Turnover Ratio. 5. Gross Profit Ratio. 6. Debt Equity Ratio. 7.
Return on Capital Employed. 8. Dividend Payout Ratio Net profit.
XI. DATA ANALYSIS
1. Current Ratio Current ratio may be defined as the relationship between quick
or liquid asset and current liabilities. This is a measure of general liquidity & is
most widely used to make analysis of short-turn financial position or liquidity of
firm. It is calculated by dividing the total current assets by total current
liabilities. Current Ratio - Current Assets_ Current Liabilities.
Interpretation From the above figure and table it is clear that Current ratio of
Tata steel is increasing from the year 2009 to 2011.But a fall down in year 2012
to 2014 and highest in the year 2011. On the other hand the current ratio of
Jindal steels fluctuating from the year 2009 to 2014 showcasing the both
increasing and decreasing trend. It indicates the company‟s ability to meet the
short term debts.
2. Quick Ratio Quick ratio establishes relationship between quick or liquid
assets & current liabilities. It is also known as acid test ratio. An asset is said to
be liquid if it can be converted into case within short period of time loss of
value. The prepaid expenses and stock were excluded.
Quick ratio = Quick asset_____ Current Liabilities
TABLE - 1 YEAR TATA STEELS JSW STEELS 2009 – 2010 1.12 0.58 2010
– 2011 1.53 0.78 2011 – 2012 0.93 0.76 2012 – 2013 0.86 0.88 2013 – 2014
0.57 0.82 Source - Dion Global Solutions Limited.
Interpretation From the above figure and table it is clear that quick ratio of Tata
steel is increasing from the year 2009 to 2011.But a fall down in year 2012 to
2014 and highest in the year 2011. On the other hand the quick ratio of Jindal
steels fluctuating from the year 2009 to 2014 in increasing and decreasing trend
but an increase in the year 2013- 2014. It indicates the company’s ability to
meet the short term debts.
3. Inventory Turnover Ratio Inventory turnover ratio (ITR) is an activity ratio
that evaluates the liquidity of the inventories of a company. It measures how
many times the company has sold and replaced its inventory during a certain
period. This ratio is computed by dividing the cost of goods sold by average
inventory at cost. Inventory Turnover ratio = Cost of Goods Average inventory.
Inventory turnover ratio of Tata steel is decreasing from the year 2010 to 2014
but an increasing trend only in the year 2009 - 2010. On the other hand the
inventory turnover ratio of Jindal steels is fluctuating from the year 2010 to
2014.On the other hand increasing trend only in the year 2009 – 2010, and rest
of the years decreasing trend. It indicates the company‟s ability to manage
inventory levels.
4. Fixed Assets Turnover Ratio Fixed assets turnover ratio (also known as sales
to fixed assets ratio) is a commonly used activity ratio that measures the
efficiency with which a company uses its fixed assets to generate its sales
revenue. It is computed by dividing net sales by average fixed assets.
Fixed assets turnover ratio of Tata steel is increasing from the year 2009 to 2012
but a decreasing trend in the year 2013 - 2014. On the other hand the fixed
assets turnover ratio of Jindal steels fluctuating from the year 2010 to 2014. On
the other hand increasing trend in the year 2012 – 2013, and rest of the years
decreasing trend. It indicates the company‟s ability to utilize fixed assets levels.
5. Debt equity ratio Debt to equity ratio is a long term solvency ratio that
indicates the soundness of long-term financial policies of the company. It shows
the relation between the portion of assets provided by the stockholders and the
portion of assets provided by creditors. It is calculated by dividing total
liabilities by stockholder‟s equity.
Debt to equity ratio is also known as “external-internal equity ratio.” Debt -
equity ratio = Total Liabilities Stockholders equity
Debt equity ratio of Tata steel is decreasing from the year 2009 to 2012 but
fluctuating trend in the year 2013 - 2014. On the other hand the debt - equity
ratio of Jindal steels fluctuating from the year 2010 to 2013.On the other hand
increasing trend in the year 2012 – 2014, and rest of the years decreasing trend.
It indicates the company‟s ability to utilize fixed assets levels. Debt-to-equity
ratio (D/E) indicating the relative proportion of shareholders' equity and debt
used to finance a company's assets.
6. Gross Profit Ratio Gross profit ratio (GP ratio) is a profitability ratio that
shows the relationship between gross profit and total net sales revenue. It is a
popular tool to evaluate the operational performance of the business. The ratio
is computed by dividing the gross profit figure by net sales.
The following formula/equation is used to compute gross profit ratio: Gross
Profit x 100 Net Sales TABLE - 6 YEAR TATA STEEL JSW STEEL 2009 –
2010 31.36 17.73 2010 – 2011 35.16 14.11 2011 – 2012 30.60 12.09 2012 –
2013 24.83 12.21 2013 – 2014 26.10 13.37
Gross profit ratio of Tata steel is increasing from the year 2009 to 2011 but
decreasing trend in the year 2011 – 2014.On the other hand the gross profit ratio
of Jindal steels fluctuating from the year 2010 to 2013.On the other hand
increasing trend in the year 2012 – 2014, and rest of the years decreasing trend.
It indicates the company‟s ability to meet its expenses.
7. Return On Capital Employed Ratio Return on capital employed ratio is
computed by dividing the net income before interest and tax by capital
employed. It measures the success of a business in generating satisfactory profit
on capital invested. The ratio is expressed in percentage.
TABLE- 7 YEAR TATA STEEL JSW STEEL 2009 – 2010 13.06 15.08 2010 – 2011
14.86 11.73 2011 – 2012 14.77 13.22 2012 – 2013 12.80 12.59 2013 – 2014
13.37 12.96
Return on capital employed ratio of Tata steel is increasing from the year 2009
to 2012 but decreasing trend in the year 2012 - 2013 and increasing in year
2013 - 2014. On the other hand, the return on capital assets ratio of Jindal
steels fluctuating from the year 2010 to 2013.On the other hand increasing
trend in the year 2013 – 2014, and rest of the years decreasing trend. It
indicates the company‟s ability to generate profits out of shareholders and
creditors investments.
8. Dividend Pay-out Ratio Dividend pay-out ratio discloses what portion of the
current earnings the company is paying to its stockholders in the form of
dividend and what portion the company is ploughing back in the business for
growth in future. It is computed by dividing the dividend per share by the
earnings per share (EPS) for a specific period. dividend payout ratio of Tata
steel is increasing from the year 2009 to 2012 but decreasing trend in the year
2012 -2014. On the other hand, the dividend payout ratio of Jindal steels
increasing from the year 2009 to 2012. On the other hand decreasing in the
year 2011 – 2012, and rest of the years increasing trend. It indicates the
company‟s ability to pay out dividend to its shareholders.

CONCLUSION
Efficient management of finance is very important for the success of an
enterprise. Term financial performance is very dynamic term. The subject
matter of financial performance has been changing very rapidly. In present time
greater importance is given to financial performance. So, here an attempt is
made by me to compare the financial performance of the selected units i.e.
TATA STEEL LTD. and JSW STEEL LTD. While analyzing the financial
performance of the selected units, it can be concluded that TATA Steel is
performing good in terms of Quick assets, better inventory management,
management of fixed assets, gross profit, return on capital employed and
dividend payout ratio. When compared with JSW steels. These factors plays
important role in forming company‟s strategic and operational thinking. Efforts
should constantly be made to improve the financial position up to next level of
performance in order to make benchmark. This will yield greater efficiencies
and improve investor‟s satisfaction.

Financial Analysis Comparison of Tata Steel and JSW

Steel
Tata Steel

KEY FINANCIAL RATIOS OF MAR 21 MAR 20 MAR 19 MAR 18 MAR 17  

TATA STEEL (in Rs. Cr.)

PER SHARE RATIOS  

Basic EPS (Rs.) 117.04 57.11 90.41 38.57 31.74  

Diluted EPS (Rs.) 117.03 57.11 90.40 38.56 31.74  

Cash EPS (Rs.) 146.77 93.04 125.08 68.90 71.92  

Book Value 754.84 650.56 614.72 536.72 511.21  

[ExclRevalReserve]/Share (Rs.)

Book Value 754.84 650.56 614.72 536.72 511.21  

[InclRevalReserve]/Share (Rs.)

Dividend / Share(Rs.) 25.00 10.00 13.00 10.00 10.00  

Revenue from Operations/Share 541.13 527.30 616.08 520.16 494.06  

(Rs.)

PBDIT/Share (Rs.) 186.88 133.19 200.40 144.34 126.52  

PBIT/Share (Rs.) 153.62 98.99 167.22 111.81 90.06  

PBT/Share (Rs.) 148.44 57.68 141.58 57.92 55.15  

Net Profit/Share (Rs.) 113.50 58.84 91.90 36.38 35.46  

PROFITABILITY RATIOS  

PBDIT Margin (%) 34.53 25.25 32.52 27.74 25.60  

PBIT Margin (%) 28.38 18.77 27.14 21.49 18.22  

PBT Margin (%) 27.43 10.93 22.98 11.13 11.16  

Net Profit Margin (%) 20.97 11.15 14.91 6.99 7.17  

Return on Networth / Equity (%) 15.03 9.04 14.95 6.77 6.93  

Return on Capital Employed (%) 13.56 9.49 17.12 12.87 9.89  

Return on Assets (%) 8.24 4.48 7.66 3.33 3.09  

Total Debt/Equity (X) 0.30 0.53 0.38 0.41 0.56  

Asset Turnover Ratio (%) 39.30 40.18 51.35 47.64 43.05  

LIQUIDITY RATIOS  

Current Ratio (X) 0.81 0.65 0.67 1.35 0.87  

Quick Ratio (X) 0.52 0.30 0.23 0.92 0.43  

Inventory Turnover Ratio (X) 7.54 5.64 6.27 5.41 4.69  

Dividend Payout Ratio (NP) (%) 8.42 22.08 10.87 29.67 30.28  

Dividend Payout Ratio (CP) (%) 6.51 13.96 7.99 15.66 14.93  

Earnings Retention Ratio (%) 91.58 77.92 89.13 70.33 69.72  

Cash Earnings Retention Ratio (%) 93.49 86.04 92.01 84.34 85.07  

VALUATION RATIOS  

Enterprise Value (Cr.) 122,977.03 68,929.2 85,636.83 85,974.08 73,848.8  

2 3

EV/Net Operating Revenue (X) 1.90 1.14 1.21 1.44 1.54  

EV/EBITDA (X) 5.49 4.52 3.73 5.20 6.01  

MarketCap/Net Operating Revenue 1.50 0.51 0.85 1.10 0.98  

(X)

Retention Ratios (%) 91.57 77.91 89.12 70.32 69.71  

Price/BV (X) 1.08 0.41 0.85 1.06 0.94  

Price/Net Operating Revenue 1.50 0.51 0.85 1.10 0.98  

Earnings Yield 0.14 0.22 0.18 0.06 0.07

JSW STEEL

KEY FINANCIAL RATIOS MAR 21 MAR 20 MAR 19 MAR 18 MAR 17  

OF JSW STEEL (in Rs. Cr.)

PER SHARE RATIOS  

Basic EPS (Rs.) 34.92 22.03 33.77 19.24 14.89  

Diluted EPS (Rs.) 34.72 21.89 33.60 19.14 14.80  

Cash EPS (Rs.) 40.31 29.28 38.35 25.43 21.93  

Book Value 155.55 127.45 115.92 92.41 80.06  

[ExclRevalReserve]/Share (Rs.)

Book Value 155.55 127.45 115.92 92.41 80.06  

[InclRevalReserve]/Share (Rs.)

Dividend / Share(Rs.) 6.50 2.00 4.10 3.20 2.25  

Revenue from Operations/Share 234.20 213.50 256.44 215.15 173.72  
(Rs.)

PBDIT/Share (Rs.) 65.99 43.67 62.85 46.21 39.20  

PBIT/Share (Rs.) 53.47 31.97 51.48 36.09 29.15  

PBT/Share (Rs.) 40.38 14.26 38.89 23.43 17.05  

Net Profit/Share (Rs.) 27.79 17.58 26.98 15.31 11.88  

PROFITABILITY RATIOS  

PBDIT Margin (%) 28.17 20.45 24.50 21.47 22.56  

PBIT Margin (%) 22.83 14.97 20.07 16.77 16.77  

PBT Margin (%) 17.24 6.67 15.16 10.88 9.81  

Net Profit Margin (%) 11.86 8.23 10.52 7.11 6.84  

Return on Networth / Equity (%) 17.86 13.79 23.27 16.57 14.84  

Return on Capital Employed (%) 16.78 11.13 21.75 18.06 16.00  

Return on Assets (%) 6.29 4.33 7.55 5.40 4.41  

Total Debt/Equity (X) 0.87 1.20 0.94 1.14 1.38  

Asset Turnover Ratio (%) 53.08 52.65 71.85 75.94 64.58  

LIQUIDITY RATIOS  

Current Ratio (X) 0.80 0.83 0.78 0.76 0.68  

Quick Ratio (X) 0.51 0.55 0.49 0.36 0.33  

Inventory Turnover Ratio (X) 6.61 6.68 7.14 6.44 5.64  

Dividend Payout Ratio (NP) (%) 5.75 22.49 11.18 14.16 6.09  

Dividend Payout Ratio (CP) (%) 3.96 13.50 7.86 8.52 3.30  

Earnings Retention Ratio (%) 94.25 77.51 88.82 85.84 93.91  

Cash Earnings Retention Ratio 96.04 86.50 92.14 91.48 96.70  
(%)

VALUATION RATIOS  

Enterprise Value (Cr.) 170,380.70 78,740.45 115,371.85 118,113.1 88,673.60  

0

EV/Net Operating Revenue (X) 2.41 1.23 1.49 1.82 1.70  

EV/EBITDA (X) 8.55 5.99 6.10 8.46 7.52  

MarketCap/Net Operating 2.00 0.69 1.14 1.34 1.08  

Revenue (X)

Retention Ratios (%) 94.24 77.50 88.81 85.83 93.90  

Price/BV (X) 3.01 1.15 2.53 3.12 2.34  

Price/Net Operating Revenue 2.00 0.69 1.14 1.34 1.08  

Earnings Yield 0.06 0.12 0.09 0.05 0.06

RESULTS OF TATA STEEL

 08.02.2022
Tata Steel Consolidated December 2021 Net Sales at Rs 60,783.11 crore, up 53.52% Y-o-
Y
 08.02.2022
Tata Steel Standalone December 2021 Net Sales at Rs 31,964.25 crore, up 77.92% Y-o-Y
 04.02.2022
Tata Steel Q3 Results | Profit jumps 2.5 times to Rs 9,573 crore, revenue to Rs 60,783
crore
 07.01.2022
Tata Steel Q3 output grows 2% to 7.68 MT; sales fall 3% to 6.88 MT

RESULTS OF JSW STEEL

 24.01.2022
JSW Steel Standalone December 2021 Net Sales at Rs 28,850.00 crore, up 49.96% Y-o-Y
 24.01.2022
JSW Steel Consolidated December 2021 Net Sales at Rs 38,071.00 crore, up 74.17% Y-
o-Y
 21.01.2022
JSW Steel Q3 results | Net profit rises 62.5% YoY to Rs 4,357 crore, revenue grows to Rs
38,071 crore
 26.10.2021
 JSW Steel Consolidated September 2021 Net Sales at Rs 32,503.00 crore, up 68.72% Y-
o-Y

Market capitalization of Tata Steel (TATASTEEL.NS)

Market cap: $22.06 Billion

As of April 2022 Tata Steel has a market cap of $22.06 Billion. This makes Tata Steel
the world's 843th most valuable company by market cap according to our data. The
market capitalization, commonly called market cap, is the total market value of a
publicly traded company's outstanding shares and is commonly used to mesure how
much a company is worth.

Market cap history of Tata Steel from 2006 to 2022

Year Market cap

2022 $21.16 B

2021 $18.16 B

2020 $9.70 B

2019 $7.48 B

2018 $8.26 B

2017 $9.36 B

2016 $5.00 B

2015 $3.32 B

2014 $5.10 B

2013 $5.42 B

2012 $5.48 B

2011 $4.23 B

2010 $7.94 B

2009 $5.93 B

2008 $2.08 B

2007 $8.08 B

2006 $3.10 B
PROFIT AND LOSS OF TATA STEEL YEARWISE

PROFIT AND Mar Mar Mar Mar Mar

LOSS 2011 2012 2013 2014 2015 2
Mar 2010

Sales + 102,393 118,753 132,900 134,712 148,614 1

Expenses + 95,754 105,312 120,483 130,746 132,430 1

Operating Profit 6,639 13,441 12,417 3,965 16,184

OPM % 6% 11% 9% 3% 11%

Other Income + 1,378 7,031 4,935 1,445 716

Interest 3,494 3,956 4,250 3,968 4,337

Depreciation 4,492 4,415 4,517 5,575 5,841

Profit before tax 31 12,102 8,585 -4,133 6,722

Tax % 6,941% 27% 42% -78% 45%

Net Profit -2,009 8,983 5,390 -7,058 3,595

EPS in Rs -19.52 80.73 47.84 -62.65 31.91

Dividend Payout % -35% 13% 22% -11% 27%

Compounded Sales Growth

10 Years: 3%
 PROFIT AND Mar Mar Mar Mar Mar
LOSS 2011 2012 2013 2014 2015 2
Mar 2010
5 Years: 9%

3 Years: 8%

TTM: 58%
Compounded Profit Growth
10 Years: -1%
5 Years: 46%
3 Years: 4%
TTM: 1497%
Stock Price CAGR
10 Years: 11%
5 Years: 24%
3 Years: 35%
1 Year: 39%
Return on Equity
10 Years: 4%
5 Years: 8%
3 Years: 10%
Last Year: 11%
PROFIT AND LOSS OF JSW STEEL

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 2
Mar 2010

Sales + 18,957 24,106 34,368 38,210 51,220 52

Expenses + 14,891 19,237 27,571 31,698 42,051 43

Operating Profit 4,066 4,869 6,797 6,512 9,169 9

OPM % 21% 20% 20% 17% 18% 1

Other Income + 547 189 -1,444 -307 -1,630

Interest 1,115 1,060 1,427 1,967 3,048 3

Depreciation 1,299 1,560 1,933 2,237 3,183 3

Profit before tax 2,200 2,438 1,993 1,999 1,308 2

Tax % 29% 32% 25% 42% 70% 3

Net Profit 1,598 1,754 538 963 452 1

EPS in Rs 8.54 7.86 2.41 4.32 1.87

Dividend Payout % 15% 20% 40% 30% 74% 1

Compounded Sales Growth

10 Years: 13%

5 Years: 14%

3 Years: 4%

TTM: 79%
Compounded Profit Growth
10 Years: 16%
5 Years: 48%
3 Years: 8%
TTM: 448%
Stock Price CAGR
10 Years: 26%
5 Years: 31%
3 Years: 36%
1 Year: 13%
Return on Equity
10 Years: 14%
5 Years: 19%
3 Years: 18%
Last Year: 19%

BALANCE SHEET OF TATA STEEL

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 201
Mar 2010

Share Capital + 887 959 994 993 991 97

Reserves 21,927 34,427 41,645 33,201 39,561 30,37

Borrowings 53,100 60,577 59,897 68,507 81,609 80,70

Other Liabilities + 33,713 39,350 44,278 44,197 49,463 47,05

Total Liabilities 109,627 135,313 146,791 146,876 171,604 159,10

Fixed Assets + 51,018 51,866 59,287 68,002 74,907 68,10

CWIP 9,319 13,552 20,196 14,277 26,822 28,67

 Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 201
Mar 2010

Investments 5,418 7,847 4,021 3,258 5,093 3,45

Other Assets + 43,872 62,048 63,286 61,340 64,781 58,87

Total Assets 109,627 135,313 146,791 146,876 171,604 159,10

BALANCE SHEET OF JSW STEEL

Mar 2011 Mar 2012 Mar 2013 Mar 2014 Mar 2015 Mar 201
Mar 2010

Share Capital + 527 563 563 563 1,067 1,06

Reserves 8,730 15,437 16,186 16,781 20,871 21,98

Borrowings 16,173 16,476 19,909 21,346 34,762 37,99

Other Liabilities + 10,255 13,691 17,543 19,102 21,704 25,37

Total Liabilities 35,406 45,888 53,922 57,513 77,640 85,65

Fixed Assets + 22,352 26,904 33,812 34,717 47,046 52,17

CWIP 6,956 6,023 2,832 5,898 9,400 8,26

Investments 628 2,914 2,090 1,750 663 59

Other Assets + 5,470 10,048 15,189 15,148 20,531 24,61

Total Assets 35,406 45,888 53,922 57,513 77,640 85,65

RESULTS OF THE ABOVE DATA
From the above data, I have analysed that the growth of both the companies
are progressive year by year and both the companies have a great P&L
statement and balance sheet. The difference between both the companies’
fundamentals is that Tata Steel Ltd. Has a better growth rate than JSW Steel, it
is not like that JSW steel has bad performance but somewhere Tata Steel is
having a lead with its total assets count and the profit company is having is
unbelievable. If we look into the reserves of both the companies, Tata Steel is
having 21,927 whereas the JSW Steel only have 8730. So this is how Tata Steel
leaves an impact when compared to JSW Steel.

FUTURE PLANS OF TATA STEEL

Tata Steel has outlined a future-facing strategy that will move the company into
the next era for manufacturing in the automotive industry.

Outlining short-, medium- and long-term ambitions, the plan developed by

Tata Steel addresses three key areas: Electrification, autonomous driving and
shared use; Digitalisation and service offering; and Sustainability.
These plans project towards a future that Tata Steel predicts will be an
automotive market based on mobility services using shared autonomous
vehicles, with the majority of vehicle sales being on a business-to-business
basis as fewer consumers own cars.
Tata Steel predicts that by 2050, these will primarily be propelled by an
electrified powertrain though other technologies, such as H2 fuel cells, will
also increase in popularity until then.
The plans will support vehicle manufacturers today and in the future as they
develop the next generation of hybrid and electric vehicles. The short-term
strategy outlines how Tata Steel deploys a range of lightweight steels for
reducing weight and cost of crash components in vehicles that are more
efficient by using less energy to move.
In addition, deployment of reliable steel solutions for energy storage and E-
motors will help to improve driving range and cost of the vehicles in the
medium term while a longer-term strategy invests in the development of new
solutions for a further optimisation in future generations.
Digitalisation within the automotive value chain allows for through-chain
material traceability and quality tracking, for a more efficient processing and
continuous adaptation to customer-specific demands.
Advanced engineering services improve the accuracy of simulations and
reduce prototyping time and costs, while advanced digital services optimise
processes by enabling predictive manufacturing. In the longer term, Tata
Steel expects an overall faster time to market for new products that are
tailored better to customer needs, ultimately supporting customers to
achieve improved quality and a lower TCO.
With sustainability as an overarching goal, Tata Steel has made various
investments that contribute towards the overall sustainability of its
manufacturing facilities. By using a Life Cycle Assessment service to help
customers understand their carbon footprint, Tata Steel continues its
commitment to through-chain sustainability.
Tata Steel will furthermore support customers in their achievement of
improved sustainability, by offering an advisory service focused on bespoke
projects within the three pillars of CO2 performance, circular economy and
responsible supply chains. As its ultimate ambition, Tata Steel has begun
work on plans to make large asset investments to create the steel plant of the
future – one key factor being implementing new technology to produce liquid
steel, enabling up to 80% reduction in CO2.
Basjan Berkhout, marketing manager automotive at Tata Steel Europe said:
“We are committed to pioneering the next generation of steel products for
car manufacturers, allowing them to further lightweight vehicles and reduce
vehicle emissions as well as improving their manufacturing efficiencies. We
have plans to create the steel plant of the future as we set out our
commitment to sustainability.
“In different ways, steel is expected to play an increasingly important role in
the vehicle structure in the future as in our vision the most sustainable
vehicles are built with steel. Steel is forever recyclable, and so can be the
most sustainable material for cars, vans and trucks today and in the future.”
Latest forecasts continue to predict increasing sales of electric vehicles over
the next 30 years bringing an additional 4.2 million tonnes of advanced steels
to the European market.
Vehicle structure steel solutions, E-motor steel laminations and steel battery
solutions are expected to see a sharp increase in demand stimulated by
companies wanting to make their vehicles carbon-neutral over their
complete lifecycle.

SOME FAMOUS Q&A OF TATA STEEL’S FUTURE

Tata Steel delivered one of its best financial performances ever in the third
quarter of the current financial year, and surpassed its deleveraging target of
$1 billion.

In an interview, Koushik Chatterjee, executive director and chief financial

officer, Tata Steel, tells Ishita Ayan Dutt that the company will continue to
focus on deleveraging but profitable and value-added growth will be equally
important.

How do you read the commodity cycle and what is your expectation in the
near future?

Globally, commodities have recovered very sharply from the lows of the
pandemic in April 2020 on the back of a weak dollar, the liquidity triggered
demand for commodities, supply constraint in the industry, the strong demand
pull in China over the recent quarters and the broad based demand recovery
post the peak of the pandemic.

If you look at the economic stimulus globally across countries it has been very
significant as a percentage of GDP.

This liquidity induced demand has resulted in increase in most of the

commodity prices globally and several analysts have a hypothesis that this
cycle looks to be a stronger and longer than the previous cycles.

Tata Steel reported its highest ever consolidated EBITDA in Q3, what is the
outlook on Q4?

Our underlying performance has been very strong during the last quarter and
we have improved further from the recovery in the second quarter.
The near-term outlook on the demand side remains fairly strong and we
continue to focus on cost take outs, improvement of the product mix including
launching new grades, better working capital management and focused capital
allocation.

Our margin momentum and cash flow generation continues to be strong and I
expect that to continue in Q4.

And we will continue to deleverage further during the fourth quarter and bring
down the gross debt further as guided of more than Rs 12,000 crore.

This year Tata Steel has over achieved its debt reduction target of $1 billion.
So what would be the focus for Tata Steel next financial year – growth capex
or debt reduction?

Our focus on free cash flows and getting to the optimum capital structure is
strategically very important and that will continue in the future.

As you can see, even in a year impacted by Covid, our financial risk
management focused sharply on the free cash flows and we have utilised the
opportunity to deleverage in a accelerated manner.

Having said that, it is equally important for us to focus on profitable and value-
accretive growth and we have started to allocate capital on organic growth
especially on completion of the cold rolling mill and the pellet plant in
Kalinganagar.

Both are margin expansionary and will be completed in the next 12-15 months.

We will also start providing capital for the commencement of the upstream
expansion execution of Kalinganagar of 5 mtpa from FY 2022 onwards.

So it is not about growth vs debt but to have a clear priority of capital

allocation and follow that up with relentless execution.

As India market has recovered what is your strategy on growth in India? And
will you participate in the privatisation?

Growth in India is an important strategic foundation of the company and we

will continue to focus on growth in India, not just on volume growth but also
on value growth from extended product mix and differentiated platforms to
serve customers better.

We see growth more holistically as part of our business strategy and the choice
of organic vs inorganic depends on the fitment of the underlying assets to our
strategy.

Once the assets or business fits our strategy and the risk and opportunities
identified, then the decision to allocate capital for the acquisition becomes
fundamentally clear.

So we will look at assets that may be available but similar lens will apply.

Unlike organic growth, acquisitions tend to bloat the capital structure and
takes some time to ease out once the integration happens.

The decision to acquire Bhushan Steel or the steel business of Usha Martin in
recent years are case in point and they have integrated very well.

We have actually been able to consistently reduce the acquisition debt in both
companies with disciplined cash flow prioritisation.

Tata Steel Europe continued to disappoint despite high steel prices. Did
Indian operations have to extend cash support?

Operationally, our European business has been stable the past few quarters
and the underlying performance has also improved sequentially from Q1 to
Q3.

The financial results were impacted by carbon provisions and other one-offs
and with better felt spreads in Q4, we should see better performance.

We haven’t extended any direct funding support yet this year and the local
management has garnered the financial resources to sustain the business.

FUTURE PLANS OF JSW STEEL

Steel giant JSW Group plans to switch majority of its bonds to green
instruments

Companies across the world are increasingly raising sustainable debt through instruments linked to
their environmental goals as pressure intensifies from investors and regulators.

India’s JSW Group, which runs emissions-heavy businesses including steel,

cement and energy, plans to switch a majority of its bonds to green instruments as
the industrial giant seeks access to longer-term borrowings. 
Raising debt overseas through green and sustainability-linked bond issues will
allow the group led by tycoon Sajjan Jindal to almost double its tenure to 10 years,
as longer term financing is increasingly difficult for companies raising funds in
India, Group Chief Financial Officer Seshagiri Rao said in an interview. There is a
“high-probability" the company will switch only to selling sustainability-linked
bonds or green bonds over the next five years, he said.

Green bonds are instruments used to raise money for environmentally friendly
projects. SLBs, on the other hand, may be used more broadly, but are linked to
sustainability targets such as carbon reduction. In India, companies including JSW
more often issue these bonds overseas as the local market isn’t as mature. India's
bond sales with green or sustainability labels totaled about $6.9 billion in 2021
from $875 million the prior year, according to data compiled by Bloomberg.
Companies across the world are increasingly raising sustainable debt through
instruments linked to their environmental goals as pressure intensifies from
investors and regulators. In the metals and mining sector, billionaire Andrew
Forrest’s iron ore giant Fortescue Metals Group Ltd. raised money through a green
bond earlier this month. 
For JSW, which has at least $2.15 billion of international bonds coming due by
2027, tapping the overseas market would be crucial as Indian lenders are wary of
longer-term loans to the infrastructure sector following a lingering credit
slowdown, made worse by a crisis in the shadow banking industry some years
back. 
The group — with an annual revenue of $13 billion — raises a third of its funds
through bonds and the rest through export credit agencies and external commercial
borrowings, Rao said.
“More and more investors, banks and the entire financial system will look to
investing only in those companies which are ESG-compliant and those firms which
have a roadmap on how they will reduce emissions," Rao said from his office in
Mumbai. “Otherwise raising financing itself will become difficult in the future. So
the company has to evolve in that direction."
The group has raised about $1.6 billion via SLBs and green bonds. Last year,
flagship JSW Steel Ltd. raised a $500 million SLB that was linked to its ability to
trim emissions from three mills in India by about 23% to around 1.95 tons of
carbon dioxide per ton of crude steel produced by the end of the decade. The target
took into account emissions from the company’s own production — scope 1
—  and energy usage —  scope 2. JSW will have to pay a one-time coupon step-up
of 37.5 basis points if it fails to meet the commitment.

The group has outlined plans to spend $1 billion to cut emissions at its steel mills
and 750 billion rupees ($9.8 billion) to shift its power business, JSW Energy Ltd.,
away from coal to renewable sources. 
While changes at industries like the group’s steel and cement operations
— traditionally among the biggest polluters — are being made in the backdrop of
India’s own national target to turn carbon neutral by 2070, a large part of the push
is being driven by overseas investors and customers. 
For JSW Steel, which sells about a quarter of its total exports to Europe, the
region’s plans to impose a border tax on carbon-intensive imports such as steel and
aluminum is adding momentum to its plans to cut emissions, Rao said.
The mill is automating its processes to measure real-time carbon emissions against
the monthly data it currently collects, in preparation for the new rule before it ships
products out to Europe, Rao said. The steel unit has cut overall emissions by
almost 27% since 2005, he said.
“Right now the entire strategy is to continue to expand and ensure that the carbon
emissions are comparable with the rest of the world in terms of the blast furnace
process of steel-making," Rao said.

JSW Group plans to switch majority of its

bonds to green instruments.

There is a 'high-probability' the company will switch to only selling

sustainability-linked bonds or green bonds over the next five years, group
CFO Seshagiri Rao said.

Signage for JSW Steel Ltd. is seen on the exterior of the company's manufacturing facility in
Dolvi, Maharashtra

Mumbai/New Delhi: India’s JSW Group, which runs emissions-heavy

businesses including steel, cement and energy, plans to switch a majority of its
bonds to green instruments as the industrial giant seeks access to longer-term
borrowings.

Raising debt overseas through green and sustainability-linked bond issues will
allow the group led by tycoon Sajjan Jindal to almost double its tenure to 10
years, as longer term financing is increasingly difficult for companies raising
funds in India, Group Chief Financial Officer Seshagiri Rao said in an interview.
There is a “high-probability” the company will switch to only selling
sustainability-linked bonds or green bonds over the next five years, he said.

Green bonds are instruments used to raise money for environmentally friendly
projects. SLBs, on the other hand, may be used more broadly, but are linked to
sustainability targets such as carbon reduction. In India, companies including
JSW more often issue these bonds overseas as the local market isn’t as mature.
India’s bond sales with green or sustainability labels totaled about $6.9 billion
in 2021 from $875 million the prior year, according to data compiled by
Bloomberg.

Companies across the world are increasingly raising sustainable debt through
instruments linked to their environmental goals as pressure intensifies from
investors and regulators. In the metals and mining sector, billionaire Andrew
Forrest’s iron ore giant Fortescue Metals Group Ltd. raised money through
a green bond earlier this month.

For JSW, which has at least $2.15 billion of international bonds coming due by
2027, tapping the overseas market would be crucial as Indian lenders are wary
of longer-term loans to the infrastructure sector following a lingering credit
slowdown, made worse by a crisis in the shadow banking industry some years
back.

The group — with an annual revenue of $13 billion — raises a third of its funds
through bonds and the rest through export credit agencies and external
commercial borrowings, Rao said.
“More and more investors, banks and the entire financial system will look to
investing only in those companies which are ESG-compliant and those firms
which have a roadmap on how they will reduce emissions,” Rao said from his
office in Mumbai. “Otherwise raising financing itself will become difficult in the
future. So the company has to evolve in that direction.”

Going green

The group has raised about $1.6 billion via SLBs and green bonds. Last year,
flagship JSW Steel Ltd. raised a $500 million SLB that was linked to its ability to
trim emissions from three mills in India by about 23% to around 1.95 tons of
carbon dioxide per ton of crude steel produced by the end of the decade. The
target took into account emissions from the company’s own production —
scope 1 —  and energy usage —  scope 2. JSW will have to pay a one-time
coupon step-up of 37.5 basis points if it fails to meet the commitments.
The group has outlined plans to spend $1 billion to cut emissions at its steel
mills and 750 billion rupees ($9.8 billion) to shift its power business, JSW
Energy Ltd., away from coal to renewable sources.

While changes at industries like the group’s steel and cement operations
— traditionally among the biggest polluters — are being made in the backdrop
of India’s own national target to turn carbon neutral by 2070, a large part of
the push is being driven by overseas investors and customers.

For JSW Steel, which sells about a quarter of its total exports to Europe, the
region’s plans to impose a border tax on carbon-intensive imports such as steel
and aluminum is adding momentum to its plans to cut emissions, Rao said.

The mill is automating its processes to measure real-time carbon emissions

against the monthly data it currently collects, in preparation for the new rule
before it ships products out to Europe, Rao said. The steel unit has cut overall
emissions by almost 27% since 2005, he said.

“Right now the entire strategy is to continue to expand and ensure that the
carbon emissions are comparable with the rest of the world in terms of the
blast furnace process of steel-making,” Rao said. 

COMPARITIVE CONCLUSION OF BOTH COMPANIES’

FUTURE
Both the companies are having excellent plans for their future survival and
growth. The investment strategy of Tata Steel is making a competition for
other steel companies to compete in the market. The questionnaire mentioned
above answers everything about the future of the company. The JSW steel
decides to contract only in green in the upcoming next 5 years which can make
interest of the government to use JSW steel due to the sustainability concern
of the company in their steel. Going Green concern can make a vast impact on
the sales of the company.

Comparison of Tata Steel with JSW Steel graphically

TATA STEEL vs JSW STEEL - Comparison
Results
Rs 100 invested in...

The red line shows Tata steel’s performance which never got beneath JSW
Steel (Blue Line).

Cash flows of both the companies

Tata Steel
Cash Flows
Consolidated Figures in Rs. Crores

Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014

Cash from Operating Activity + 10,502 5,655 12,018 14,035 13,146

Cash from Investing Activity + -4,700 -7,584 -3,705 -13,099 -15,378

Cash from Financing Activity + -5,135 5,973 -8,462 -1,780 1,015

Net Cash Flow 667 4,045 -149 -844 -1,218

JSW Steel
Cash Flows
Consolidated Figures in Rs. Crores
 Mar 2010 Mar 2011 Mar 2012 Mar 2013 Mar 2014

Cash from Operating Activity + 3,346 2,830 3,512 5,844 2,594

Cash from Investing Activity + -2,932 -7,633 -4,101 -5,433 -5,618

Cash from Financing Activity + -561 5,096 698 -791 3,300

Net Cash Flow -147 293 110 -380 276

Observations of Tata Steel’s cash flows

According to the details mentioned above, in March 2010, the cash flow of the
company was 10,502 crores and then faced a downfall in march 2011 with just
5655 crores due to financial issues of the company which were managed by
the top level management and again it had a great cash flow from operating
activity which was 12,018 crores and caught this average of almost 12 crores
since March 2017 but by the march 2018 the company had a cash flow of a
mesmerizing amount of almost 25,336 crores and then there is no looking back
of the company. In march 2021, the cash flow from operating activities was
44,327 crores.

These figures were only of operating activities but when we look into the cash
flows from investing and financing activities, the net cash flow of the company
shows that the net cash flow goes in negative. As observed, from the march
2018, it gets negative one year and positive in the next year. In March 2021, it
was -2200 crores.

Observations of JSW Steel’s cash flow

As observed from the above details of JSW Steel’s cash flows, in march 2010,
the cash flow from operating activities was 3346 crores and the average
continued till march 2017 but from the march 2018 it also had a great impact
on cash flow from operating activity which was 12,379 crores and then there as
no looking back. In March 2021, the numbers increased to 18,789 crores. The
company performed so well and after calculating the net cash from investing
and financing activities which was always in positive not like Tata Steel which
was almost every time negative. The net cash flow was -147 crores in 2010 and
it is 7977 crores in 2021.

So, in the case of cash flows JSW Steel somewhere has better net cash flow
then TATA Steel.

Let’s discuss the business model of TATA Steel

Image above is taken from the official annual report of the TATA Steel of the
financial year 2021. This is the business model of TATA Steel which includes
financial, manufacturing, intellectual, human, natural and social & relationship
capital, explaining the efficiency of the company in its capital. These are
mentioned as inputs of the company.
The value creation approach includes company’s vision, values and strategic
objectives. The company’s vision says “We aspire to be the global steel industry
benchmark for value creation and corporate citizenship”. The values say
“INTEGRITY EXCELLENCE UNITY RESPONSIBILITY PIONEERING”. And the
strategic objectives are “Leadership in India, Consolidate position as global cost
leader, Attain leadership position in adjacent businesses and Leadership in
Sustainability”.

The channel of the distribution is from inbound logistics to outbound logistics

including by-products and products.

Outputs of the company includes of FY 2020-21:

12.19 MnT - Crude steel production

13.24 MnT - Hot Metal production

12.36 MnT - Deliveries

>12 MnT - Enriched/ value-added product sales By-products generated.

Outcomes are in the numbers which are taken from the annual report

FINANCIAL CAPITAL - Turnover (₹ cr.) 64,869 - EBITDA ( ₹ cr.) 21,952 - Savings through Shikhar25
projects (₹ cr.) 3,274 INTELLECTUAL CAPITAL - Patents granted (Nos.) 109 - New products developed
(Nos.) 79 HUMAN CAPITAL - Health index (Score out of 16) (Nos.) 12.83 - Diversity -% women in the
workforce# 7.4 - Employee productivity (tcs/employee/year)$ 745 - Affirmative Action workforce (%)
17.2 - LTI (Nos.) 95 - LTIFR (Index) 0.55 - Workforce covered through formal 86.1 trade unions(%)
NATURAL CAPITAL - TSJ - CO2 emission intensity (tCO2 /tcs) 2.29 - TSK - CO2 emission intensity (tCO2
/tcs) 2.44 - TSJ - Solid waste utilisation (%) 100 - TSK - Solid waste utilisation (%) 99.7 - TSJ - Dust
emission intensity (kg/tcs) 0.29 - TSK - Dust emission intensity (kg/tcs) 0.49 - TSJ - Effluent discharge
intensity (m3 /tcs) 0.82 - TSK - Effluent discharge intensity (m3 /tcs) 0.21 - Total sites covered under
biodiversity 52.38 management plans (%) SOCIAL & RELATIONSHIP CAPITAL - Suppliers assessed
based on safety (Nos.) 745 - Customer satisfaction index (Steel) (out of 100) 83.3 - Net promoter
score (Out of 100) - Tata Tiscon 91 - Net promoter score (Out of 100) - Tata Shaktee 80 - Suppliers
trained through VCAP@ (Nos.) 844 - Business associates trained on TCoC^ (Nos.) 1,747 - Critical
suppliers assessed on 201 Responsible Supply Chain Policy (Nos.) - Quality/customer complaints
(PPM) 452 - Lives reached through CSR initiatives 1.61 (million) - Loyalty score (Out of 100) 88.5.
Business model of JSW Steel
The above pictures explain everything how the product of JSW steel works and
the images are taken from the annual BSE report of JSW Steel of financial year
2021.
 Summary of the Report
This research paper consists of the comparative study between TATA
Steel and JSW Steel. The comparison has been done with the help of
its financial analysis, ratio analysis, future plans of both the
companies, definition of both the companies and conclusion at
various stages of report. The definition includes introduction,
objectives and history. The ratio analysis including the net working
capital, current ratio, quick ratio, inventory turnover ratio, fixed
assets turnover ratio, debt equity ratio, gross profit ratio, return on
capital employed and dividend pay-out ratio. Other ratios are
Profitability ratio, Liquidity ratio, and Valuation ratios which are
expressed in numerical. Then the report is having the results of the
company which is expressed in the form of link of the website of
Moneycontrol.com. market capitalization of TATA Steel is $22.06
Billion and P&L is expressed in the tables with respected years.
Market capitalization of JSW Steel is $15.07 Billion and P&L is also
expressed as same of TATA Steel. Balance sheet also compares the
financial status of both the companies which has been implemented
in the form of year by year. Results of both P&L and Balance sheet
are written with the observations of the given data. Different plans
are discussed in the report of both the companies which shows the
expected growth of TATA Steel and JSW Steel with Q&As. Then the
report shows the comparative conclusion of both companies’ future.
Comparison is also shown in the form of graph. Then the cash flows
are providing the details of the inflow and outflow of all the
activities. Observations are calculated and expressed in the words for
the cashflows. And the last but not least, the business model is being
shown so that the objectives, tools, vision, values and strategies
could be visible to the reader. And here the end lies of the report.