Name of the company- JSW STEEL LTD

Financial analysis

Financial Statements
1) Income Statement
Particulars Mar-21 Mar-20 Mar-19 Mar-18 Mar-17
Sales 79,839.00 73,326.00 84,757.00 71,933.00 55,604.00
Expenses 59,661.00 61,513.00 65,827.00 57,017.00 43,296.00
Operating Profit 20,178.00 11,813.00 18,930.00 14,916.00 12,308.00
Other Income 473.00 -289.00 196.00 -177.00 18.00
Depreciation 4,679.00 4,246.00 4,041.00 3,387.00 3,430.00
Interest 3,957.00 4,265.00 3,917.00 3,701.00 3,768.00
Profit before tax 12,015.00 3,013.00 11,168.00 7,651.00 5,128.00
Tax 4,142.00 -906.00 3,644.00 1,538.00 1,674.00
Net profit 7,911.00 4,030.00 7,639.00 6,214.00 3,523.00
EPS 32.73 16.67 31.60 25.71 14.57
Price to earning 14.31 8.77 9.27 11.21 12.91
(Consolidated Figures in Rs. Crores)

Compounded Sales Growth

5 Years: 14%
3 Years: 4%

Compounded Profit Growth

5 Years: 48%
3 Years: 8%

Stock Price CAGR

5 years: 29%
3 Years: 34%
1 Year: 56%

Operating Profit Margin

Sep- Dec- Mar- Jun-20 Sep- Dec- Mar- Jun-21 Sep- Dec-
19 19 20 20 20 21 21 21
15% 13% 16% 11% 23% 27% 31% 36% 32% 24%
 1) Balance sheet

(Consolidated Figures in Rs. Crores)

Particulars 2021 2020 2019 2018 2017
Equity Share Capital 302.00 301.00 301.00 302.00 301.00
Reserves 46,462.00 36,298.00 34,494.00 27,696.00 22,346.00
Borrowings 62,366.00 61,399.00 47,376.00 39,185.00 43,334.00
Other Liabilities 39,187.00 33,822.00 32,626.00 24,787.00 22,024.00
Total 1,48,317.00 1,31,820.00 1,14,797.00 91,970.00 88,005.00

Net Block 64,917.00 62,085.00 62,644.00 57,848.00 58,730.00

Capital Work in 32,566.00 27,191.00 11,889.00 5,950.00 4,363.00
Progress
Investments 8,581.00 1,259.00 1,894.00 1,469.00 1,366.00
Other Assets 42,253.00 41,285.00 38,370.00 26,703.00 23,546.00
Total 1,48,317.00 1,31,820.00 1,14,797.00 91,970.00 88,005.00

Working Capital 3,066.00 7,463.00 5,744.00 1,916.00 1,522.00

Debtors 4,486.00 4,505.00 7,160.00 4,704.00 4,149.00
Inventory 14,249.00 13,773.00 14,548.00 12,594.00 11,395.00

2) Cash Flow

(Consolidated Figures in Rs. Crores)

Narration 2021 2020 2019 2018 2017
Cash from operating 18,789.00 12,785.00 14,633.00 12,379.00 7,888.00
activity
Cash from investing -7,702.00 -19,589.00 -11,387.00 -4,529.00 -5,094.00
activity
Cash from financing -3,110.00 5,189.00 1,753.00 -8,185.00 -2,710.00
activity
Net Cash Flow 7,977.00 -1,615.00 4,999.00 -335.00 84.00
 3) Ratios

Particular 2021 2020 2019 2018 2017

s
ROE 17% 11% 22% 22% 16%
ROCE 16% 9% 20% 18% 14%
Debtor Days 21 22 31 24 27
Inventory 160 130 123 118 147
Days
Inventory 5.60 5.32 5.83 5.58 4.88
Turnover
Ratio
Days Payable 77 77 50 65 50
Debt to 1.11 1.45 1.03 1.21 1.65
Equity
OPM 25.27% 16.11% 22.33% 20.74% 22.14%
Dividend 24.81% 14.94% 16.16% 15.55% 19.22%
Payout
Return on 5.33% 3.05% 6.64% 6.75% 3.99%
Assets
Assets 53.82% 55.62% 73.75% 76.31% 63.12%
Turnover
Ratio
Current 0.83 0.83 0.80 0.80 0.72
Ratio
Quick Ratio 0.50 0.52 0.45 0.37 0.33

Some Definitions
 Quick Ratio
Definition: The quick ratio is an indicator of a company’s short-term liquidity position
and measures a company’s ability to meet its short-term obligations with its most liquid
assets.
Formula: (Current Assets - Inventories - Prepaid Expenses) / Current Liabilities

 Cash Ratio
Definition: The cash ratio is a measurement of a company's liquidity, specifically the ratio
of a company's total cash and cash equivalents to its current liabilities.

 Current Ratio
Definition: The current ratio is a liquidity ratio that measures a company's ability to pay
short-term obligations or those due within one year.
Formula: (Cash + Marketable Securities) / Current Liabilities.
 Accounts Receivable Turnover
Definition: The accounts receivable turnover ratio measures a company's effectiveness in
collecting its receivables or money owed by clients.

 Accounts Payable Turnover

Definition: The accounts payable turnover ratio is a short-term liquidity measure used to
quantify the rate at which a company pays off its suppliers.

 Debt to Equity Ratio

Definition: The debt-to-equity (D/E) ratio is used to evaluate a company's financial
leverage and is calculated by dividing a company’s total liabilities by its shareholder
equity.

 Earnings Per Share (EPS)

Definition: Earnings per share (EPS) is a company's net profit divided by the number of
common shares it has outstanding.

 Price to Earnings (PE) Ratio

Definition: The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that
measures its current share price relative to its earnings per share (EPS).

 Compound Annual Growth Rate (CAGR)

Definition: The compound annual growth rate (CAGR) is the annualized average rate of
revenue growth between two given years, assuming growth takes place at an
exponentially compounded rate.

 Return on Equity (ROE)

Definition: Return on equity (ROE) is a measure of financial performance calculated by
dividing net income by shareholders' equity.

 Return on Capital Employed (ROCE)

Definition: Return on Capital Employed (ROCE) is a financial ratio that measures a
company's profitability and the efficiency with which its capital is employed.
Formula:
 4) Dividend

Date Details
2021- July 05 Rs. 6.50 Final FY-21
2020- July 06 Rs. 2.00 Final-FY 20
2019- July 08 Rs. 4.10 Final FY-19
2018- July 06 Rs. 3.20 Final FY-18
2017- June 12 Rs. 2.25 Final FY-17

5) Split

Date Details
2017 Jan 04 New Face Value 1.00
Old Face Value 10.00

6) Merger

Date Details
2013 1:1
Jun 12 Merger of JSW ISPAT Steel Ltd
(Merged) into JSW Steel Ltd
2013 1:72
Jun 12 Merger of JSW ISPAT Steel Ltd into JSW
Steel Ltd
2008 1:22
Mar 14 Merger of Southern Iron & Steel
Company Ltd(merged) into JSW Steel Ltd

7) Some Other Information

 Market Cap: Rs. 1,65,604 Cr.

 Current Share Price: Rs. 685
 Stock P/E: 7.66
 Industry P/E: 4.89
 Book Value: Rs 252
 Return Over 5 Years: 28.7%
 EVEEBITDA: 5.44
 PEG Ratio: 0.16