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3QFY2012 Result Update | Steel

February 10, 2012

Tata Steel
Performance Highlights
 

BUY
CMP Target Price
chg (%) 12.3 (9.5) (6.1) 3QFY12(C) 33,103 1,717 5.2 (603) 3QFY11(C) 29,089 3,425 1,125 chg(%) 13.8 (49.9) -

`475 `558
12 months

(` cr) Net revenue EBITDA Margin (%) Adj. PAT

3QFY12(S) 8,305 2,553 30.7 1,421

3QFY11(S) 7,397 2,821 1,513

Investment Period
Stock Info Sector Market Cap (` cr) Beta 52 Week High / Low Avg. Daily Volume Face Value (`) BSE Sensex Nifty Reuters Code Bloomberg Code

38.1 (738)bp

11.8 (658)bp

Steel 46,132 1.2 661/332 1,299,901 10 17,749 5,382 TISC.BO TATA@IN

Source: Company, Angel Research

Tata Steel reported net loss on a consolidated basis during 3QFY2012 due to weak performance from its Tata Steel Europe (TSE) and Southeast Asian operations. Nevertheless, we continue to maintain our positive stance on Tata Steel and recommend Buy on the stock. Higher realization leads to top-line growth: Tata Steel’s consolidated net sales increased by 13.8% yoy to `33,103cr, above our estimate of `30,992cr, mainly on account of increased average realization in rupee terms. Standalone net sales increased by 12.3% yoy to `8,305cr. Tata Steel India’s average realization/tonne increased by 12.8% yoy to `46,591; however, TSE’s average realization/tonne decreased by 0.6% yoy to US$1,149 on account of subdued demand in Europe. EBITDA/tonne turns negative at TSE: EBITDA/tonne decreased by 7.1% to US$303 in Tata Steel India. TSE’s EBITDA/tonne stood at US$(1) compared to US$25 in 3QFY2011 on account of higher raw-material costs and inventory write-down of US$143mn. Consequently, consolidated EBITDA decreased by 49.9% yoy to `1,717cr. Owing to losses at TSE and Southeast Asian operations, Tata Steel reported net loss of `603cr in 3QFY2012 compared to adjusted PAT of `1,125cr in 3QFY2011 on a consolidated basis. Valuation: Steel prices rose by ~7.0% in Europe during CY2012, while prices of coking coal have declined over the past three quarters. These factors, coupled with inventory write-down during 3QFY2012, are expected to result in better financial performance at TSE in the coming quarters. Moreover, firm steel prices coupled with the decline in coking coal prices is expected to benefit the profitability of its India operations. We maintain our Buy rating on the stock with a revised SOTP target price of `558. Key financials (Consolidated)
Y/E March (` cr) Net sales % chg Reported PAT % chg Adj. EPS (`) EBITDA margin (%) P/E (x) P/BV (x) RoE (%) RoCE (%) EV/Sales (x) EV/EBITDA (x)
Source: Company, Angel Research

Shareholding Pattern (%) Promoters MF / Banks / Indian Fls FII / NRIs / OCBs Indian Public / Others 30.7 28.9 15.0 25.4

Abs. (%) Sensex Tata Steel

3m 2.2 5.8

1yr 1.6

3yr 84.0

(20.8) 141.2

FY2010 102,393 (30.5) (2,009) (140.6) (20.5) 7.9 (23.1) 1.8 (8.0) 5.5 0.8 10.3

FY2011 118,753 16.0 8,983 (547.1) 77.5 13.5 6.1 1.3 30.8 13.9 0.7 5.5

FY2012E 132,338 11.4 7,849 (12.6) 40.8 8.8 11.6 1.0 18.8 7.0 0.7 7.5

FY2013E 142,297 7.5 5,535 (29.5) 57.0 11.5 8.3 0.9 10.9 9.4 0.6 5.3

Bhavesh Chauhan
Tel: 022- 3935 7800 Ext: 6821 bhaveshu.chauhan@angelbroking.com

Please refer to important disclosures at the end of this report

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Tata Steel | 3QFY2012 Result Update

Exhibit 1: 3QFY2012 performance (Standalone)
Y/E March (` cr) Net Sales Consumption of Raw Material (% of Net Sales) Power& Fuel (% of Net Sales) Staff Costs (% of Net Sales) Freight & Handling (% of Net Sales) Other expenses (% of Net Sales) Total Expenditure EBITDA EBITDA (%) Interest Depreciation Other Income Exceptional Items Profit before tax (% of Net Sales) Tax (% of PBT) Profit after tax Adjusted PAT
Source: Company, Angel Research

3QFY12 8,305 2,075 25.0 452 5.4 733 8.8 444 5.3 1,984 23.9 5,688 2,553 30.7 202 289 51 2,113 25.4 692 32.7 1,421 1,421

3QFY11 7,397 1,706 23.1 345 4.7 598 8.1 397 5.4 1,478 20.0 4,524 2,821 38.1 335 286 11 2,210 29.9 697 31.5 1,513 1,513

yoy % 12.3 21.7 30.9 22.5 11.9 34.3 25.7 (9.5) (39.8) 0.9 350.8 (4.4) (0.7) (6.1) (6.1)

2QFY12 8,142 1,849 22.7 432 5.3 691 8.5 390 4.8 2,036 25.0 5,397 2,700 33.2 234 287 93 2,272 27.9 777 34.2 1,495 1,495

qoq % 2.0 12.2 4.6 6.1 13.8 (2.5) 5.4 (5.4) (13.8) 0.7 (45.4) (7.0) (10.9) (4.9) (4.9)

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Tata Steel | 3QFY2012 Result Update

Exhibit 2: 3QFY2012 performance (Consolidated)
Y/E March (` cr) Net Sales Consumption of Raw Material (% of Net Sales) Power& Fuel (% of Net Sales) Staff Costs (% of Net Sales) Freight & Handling (% of Net Sales) Other expenses (% of Net Sales) Total Expenditure Operating Profit OPM (%) Interest Depreciation Other Income Exceptional Items Profit before Tax (% of Net Sales) Tax (% of PBT) Profit after Tax Share of profit Minority interest Net Income (% of Net Sales) Adjusted net income
Source: Company, Angel Research

3QFY12 33,103 17,512 52.9 1,251 3.8 4,294 13.0 1,721 5.2 6,609 20.0 31,386 1,717 5.2 707 1,164 138 (15) 672 (687) 21 (64) (603) (1.8) (603)

3QFY11 29,089 13,889 47.7 1,031 3.5 3,609 12.4 1,593 5.5 5,543 19.1 25,665 3,425 11.8 743 1,126 (104) (122) 1,573 5.4 624 39.7 949 16 (38) 1,003 3.4 1,125

yoy % 13.8 26.1 21.3 19.0 8.0 19.2 22.3 (49.9) (4.9) 3.3 7.7 68.4 -

2QFY12 32,798 16,220 49.5 1,181 3.6 3,981 12.1 1,685 5.1 6,981 21.3 30,048 2,750 8.4 716 1,109 120 1,046 3.2 907 86.7 139 19 (54) 212 0.6 362

qoq % 0.9 8.0 6.0 7.9 2.1 (5.3) 4.5 (37.6) (1.3) 5.0 14.8 (25.9) 7.4 18.2 -

Exhibit 3: Consolidated – 3QFY2012 Actual vs. Angel estimates
(` cr) Net sales EBITDA EBITDA margin (%) Adj. net income
Source: Company, Angel Research

Actual 33,103 1,717 5.2 (603)

Estimate 30,992 2,789 9.0 729

Variation (%) 6.8 (38.4) (381)bp -

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Tata Steel | 3QFY2012 Result Update

Result highlights
Consolidated top line increases by 13.8% yoy
Tata Steel’s consolidated net sales increased by 13.8% yoy to `33,103cr, above our estimate of `30,992cr, mainly on account of increased average realization in rupee terms. Standalone net sales increased by 12.3% yoy to `8,305cr. On a standalone basis, Tata Steel India’s average realization/tonne increased by 12.8% yoy to `46,591; however, TSE’s average realization/tonne decreased by 0.6% yoy to US$1,149 on account of subdued demand in Europe.

Exhibit 4: Standalone realization up 12.8% yoy
1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0
3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

Exhibit 5: Standalone top line grew by 12.3% yoy
50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 9,000 8,000 7,000 6,000
(`/tonne)
(` cr)

40 30 20
(%)

(mn tonnes)

5,000 4,000 3,000 2,000 1,000 0
2QFY10 3QFY10 4QFY10 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

10 0 (10) (20) (30)

Sales volume (LHS)

Realization (RHS)

Revenue (LHS)

yoy change (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

EBITDA turns negative at TSE on inventory write-down
Sales volume of Tata Steel India operations decreased by 1.2% yoy to 1.62mn tonnes and that of TSE’s operations decreased by 3.5% yoy to 3.35mn tonnes in 3QFY2012. EBITDA/tonne decreased by 7.1% to US$303 in Tata Steel India. TSE’s EBITDA/tonne stood at US$(1) in 3QFY2012 compared to US$25 in 3QFY2011 on account of higher raw-material costs and inventory write-down of US$143mn. EBITDA of India operations decreased by 9.5% yoy to `2,553cr. TSE reported EBITDA of US$(147)mn and Southeast Asian operations reported EBITDA of US$(2)mn during the quarter. Consequently, consolidated EBITDA decreased by 49.9% yoy to `1,717cr.

Exhibit 6: Quarterly performance trend
(US$ mn) Tata Steel India Deliveries (mn tonnes) EBITDA (US$/tonne) TSE Deliveries (mn tonnes) EBITDA (US$/tonne) 3.7 79 3.5 56 3.5 25 4.1 85 3.5 78 3.5 30 3.4 (1) 1.4 444 1.7 332 1.6 383 1.7 396 1.6 433 1.6 364 1.6 303 1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12 3QFY12

Source: Company, Angel Research

February 10, 2012

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Tata Steel | 3QFY2012 Result Update

Owing to losses at TSE and Southeast Asian operations, Tata Steel reported net loss of `603cr in 3QFY2012 compared to adjusted PAT of `1,125cr in 3QFY2011 on a consolidated basis.

Exhibit 7: Standalone EBITDA margin stood at 30.7%
3,500 3,000 2,500 2,000 50 45 40 35 30 25 20 15 10 5 0

Exhibit 8: Standalone net profit dipped by 6.1% yoy
2,500 2,000 1,500 200 150 100 50 0 (50)

(` cr)

(` cr)

(%)

1,500 1,000 500 0

1,000 500 0

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

3QFY12

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

EBITDA (LHS)

Margin (RHS)

Net profit (LHS)

yoy change (RHS)

Source: Company, Angel Research

Source: Company, Angel Research

The company’s net debt increased to US$9.5bn as on December 31, 2011 compared to US$8.5bn as on September 30, 2011. Tata Steel’s 2.9mn-tonne brownfield expansion project in Jamshedpur remains on track to be completed during 4QFY2012.

Investment arguments
Brownfield expansion on track
Tata Steel’s 2.9mn-tonne brownfield expansion program is on track and is expected to be commissioned by 4QFY2012. The product mix constitutes 2.5mn tonnes of hot rolled coil (HRC) and 0.3mn tonnes of slabs. We expect this expansion to contribute ~`3,500cr p.a. to the company’s consolidated EBITDA once the new plant reaches optimum capacity utilization.

Higher integration levels for TSE to boost earnings
Tata Steel is in the process of developing a coking coal mine in Mozambique and an iron ore mine in Canada to enhance integration levels of TSE. The projects are expected to be commissioned in phases, beginning from 2HFY2012. Total capex remaining for the Mozambique project is US$100mn–150mn, while the Canadian project will involve capex of CAD350mn. We expect these backward integration projects at Mozambique and Canada to boost TSE’s earnings beginning 2HFY2013.

February 10, 2012

3QFY12

(%)

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Tata Steel | 3QFY2012 Result Update

Odisha project could provide further upsides in the long term
Tata Steel is setting up a 6mn-tonne integrated steel plant (including cold rolling mill) in two phases of 3mn tonnes each for a capex of `34,500cr. Phase 1 of the 3mn-tonne plant is expected to be completed by CY2014. This plant could potentially result in significant earnings accretion post completion.

Outlook and valuation
Steel prices rose by ~7.0% in Europe during CY2012, while prices of coking coal have declined over the past three quarters. These factors, coupled with inventory write-down during 3QFY2012, are expected to result in better financial performance at TSE in the coming quarters. Moreover, firm steel prices coupled with the decline in coking coal prices is expected to benefit the profitability of its India operations. We continue to maintain our positive stance on Tata Steel owing to its buoyant business outlook, driven by a) higher sales volume in FY2013 on completion of its 2.9mn-tonne brownfield expansion project in Jamshedpur; b) raw-material projects at Mozambique and Canada; and c) restructuring initiatives at TSE. We recommend Buy on the stock with a revised SOTP target price of `558.

Exhibit 9: SOTP valuation
FY2013E EBIDTA (` cr) Tata Steel India TSE Asia Total EV Net Debt Investments Market cap Target price (`)
Source: Angel Research

EV/EBIDTA (x) 6.0 5.0 4.0

(` cr) 79,847 12,096 2,501 94,444 45,093 4,787 54,138 558

13,308 2,419 625

Exhibit 10: EPS – Angel forecast vs. consensus
Year (`) FY2012E FY2013E
Source: Bloomberg, Angel Research

Angel forecast 40.8 57.0

Bloomberg consensus 47.4 57.7

Variation (%) (13.9) (1.2)

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(`)

(`)

(`mn)

Exhibit 12: P/E

Exhibit 13: P/BV
1,000 1,500 2,000 2,500 3,000 500 0 (500)

Exhibit 11: EV/EBITDA

1,000 900 800 700 600 500 400 300 200 100 0
2x

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

200,000 0

400,000

600,000

800,000

0.2x
4x 8x 12x 16x

Source: Bloomberg, Angel Research Source: Bloomberg, Angel Research

Source: Bloomberg, Angel Research

4x

0.8x

6x 8x

1.4x

10x

2.0x

Apr-02 Aug-02 Dec-02 Apr-03 Aug-03 Dec-03 Apr-04 Aug-04 Dec-04 Apr-05 Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11

Apr-02 Aug-02 Dec-02 Apr-03 Aug-03 Dec-03 Apr-04 Aug-04 Dec-04 Apr-05 Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11

Apr-02 Aug-02 Dec-02 Apr-03 Aug-03 Dec-03 Apr-04 Aug-04 Dec-04 Apr-05 Aug-05 Dec-05 Apr-06 Aug-06 Dec-06 Apr-07 Aug-07 Dec-07 Apr-08 Aug-08 Dec-08 Apr-09 Aug-09 Dec-09 Apr-10 Aug-10 Dec-10 Apr-11 Aug-11 Dec-11

Tata Steel | 3QFY2012 Result Update

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Tata Steel | 3QFY2012 Result Update

Exhibit 14: Recommendation summary
Companies CMP (`) SAIL Tata Steel JSW Steel 113 475 817 Target price (`) - Neutral 558 Buy - Neutral Reco. Mcap Upside (` cr) 46,715 46,132 18,221 17 P/E (x) 12.3 11.6 18.3 9.2 8.3 11.3 P/BV (x) 1.1 1.0 1.1 1.0 0.9 1.0 EV/EBITDA (x) 9.3 7.5 6.3 6.6 5.3 5.3 RoE (%) 9.7 18.8 6.7 11.7 10.9 10.1 RoCE (%) 7.2 7.0 9.0 9.4 9.4 10.8 (%) FY12E FY13E FY12E FY13E FY12E FY13E FY12E FY13E FY12E FY13E

Source: Company, Angel Research

February 10, 2012

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Tata Steel | 3QFY2012 Result Update

Profit & Loss Statement (Consolidated)
Y/E March (` cr) Total operating income % chg Total expenditure Net raw materials Other mfg costs Personnel Other EBITDA % chg (% of Net sales) Depreciation EBIT % chg (% of Net sales) Interest charges Other income (% of PBT) Share in profit of asso. Recurring PBT % chg Extra. Inc/(Expense) PBT (reported) Tax (% of PBT) PAT (reported) Add: Earnings of asso. Less: Minority interest Extra. Expense/(Inc.) PAT after MI (reported) ADJ. PAT % chg (% of Net sales) Basic EPS (`) Fully Diluted EPS (`) % chg Adj. EPS (`) FY2008 646.9 58,580 10,968 16,900 27,304 17,340 148.7 13.2 4,137 13,203 114.5 10.1 4,085 919 9.2 10,036 56.5 6,335 16,371 4,049 24.7 12,322 168 (140) 12,350 7,915 84.1 6.0 176.8 162.6 120.5 104.2 FY2009 12.4 74,914 11,982 17,975 24,331 18,128 4.5 12.3 4,265 13,862 5.0 9.4 3,290 266 2.5 10,838 8.0 (4,095) 6,743 1,894 28.1 4,849 61 41 4,951 7,496 (5.3) 5.1 66.1 59.0 (63.7) 89.3 FY2010 (30.5) 44,752 9,601 16,463 23,535 8,043 (55.6) 7.9 4,492 3,551 (74.4) 3.5 3,022 1,186 69.2 1,715 (84.2) (1,684) 31 2,152 6,941.4 (2,121) 127 (15) (2,009) (1,822) (124.3) (1.8) (24.9) (25.0) (142.3) (20.5) FY2011 FY2012E FY2013E 132,338 11.4 120,754 55,582 11,910 19,851 33,411 11,583 (27.6) 8.8 4,759 6,824 (41.1) 5.2 2,843 794 16.6 4,775 (51.2) 3,887 8,662 955 11.0 7,707 69 73 7,849 3,962 (46.7) 3.0 81.9 80.9 (12.9) 40.8 142,297 7.5 125,945 59,765 12,807 21,345 32,029 16,352 41.2 11.5 6,249 10,103 48.1 7.1 3,034 953 11.9 8,022 68.0 0 8,022 2,647 33.0 5,375 80 80 5,535 5,535 39.7 3.9 57.7 57.0 (29.5) 57.0 16.0 52,579 10,404 15,288 24,486 15,996 98.9 13.5 4,415 11,581 226.1 9.8 2,770 981 10.0 9,792 471.0 2,310 12,102 3,246 26.8 8,856 60 66 8,983 7,435 (508.1) 6.3 99.0 92.9 (472.2) 77.5 131,091 147,329 102,393 118,753 113,751 129,202 94,350 102,758

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Tata Steel | 3QFY2012 Result Update

Balance Sheet (Consolidated)
Y/E March (` cr) SOURCES OF FUNDS Equity share capital Reserves & surplus Shareholders’ funds Share warrants Hybrid perpetual securities Minority interest Total loans Deferred tax liability Other liabilities Total liabilities APPLICATION OF FUNDS Gross block Less: Acc. depreciation Net Block Capital work-in-progress Goodwill Investments Current assets Cash Loans & advances Other Current liabilities Net current assets Mis. exp. not written off Total assets 96,229 63,162 33,067 8,896 18,060 3,367 61,467 4,232 15,465 41,770 32,852 28,615 156 92,162 99,459 63,083 36,376 8,930 15,365 6,411 53,871 6,148 13,016 34,707 30,251 23,620 577 91,279 97,289 113,986 60,764 36,525 9,271 14,542 5,418 43,868 6,788 6,761 30,319 29,983 13,885 61,592 36,568 15,825 15,298 7,847 59,769 10,893 9,995 38,881 33,761 26,008 118,986 66,352 52,634 10,825 15,298 4,347 73,299 18,515 9,995 44,789 40,168 33,131 116,411 124,986 72,601 52,385 17,825 15,298 4,347 72,737 15,591 9,995 47,151 43,384 29,353 119,384 730 33,444 34,174 17.5 833 53,593 2,465 1,080 92,162 730 26,984 27,714 17.5 895 59,901 1,709 1,042 91,279 887 21,927 22,814 17.5 884 53,307 1,654 964 959 34,427 35,564 17 1,500 889 60,684 2,188 879 971 46,855 47,826 17 1,500 816 63,184 2,188 879 116,411 971 51,626 53,379 17 1,500 736 60,684 2,188 879 119,384 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

79,641 101,722

79,641 101,722

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Tata Steel | 3QFY2012 Result Update

Cash flow statement (Consolidated)
Y/E March (` cr) Profit before tax Depreciation Change in WC Less: Other income Direct taxes paid Cash flow from operations (Inc.)/ Dec. in fixed assets (Inc.)/ Dec. in investments (Inc.)/ Dec. in loans and adv. Other income Cash flow from investing Issue of equity Inc./(Dec.) in loans Dividend paid Others Cash flow from financing Inc./(Dec.) in cash Opening cash bal. Closing cash bal. (4,049) (1,894) (7,885) 16,024 13,130 (3,044) 9,755 28,667 32,789 69,814 16,494 4,232 6,308 4,813 4,029 6,148 (2,463) 10,502 194,182 (4,700) 2,446 (6,261) (1,321) (5,135) 667 6,148 6,815 (3,235) 6,463 1,785 4,557 2,151 (714) 5,993 4,078 6,815 10,893 FY2008 FY2009 16,371 4,137 (24,343) 6,743 4,265 6,910 FY2010 31 4,492 8,443 FY2011 FY2012E FY2013E 12,102 4,415 (6,819) 8,662 4,759 499 794 (955) 13,759 (3,500) (794) 5,364 2,500 (1,083) 270 7,051 7,691 10,893 18,584 8,022 6,249 854 953 (2,647) 13,432 (953) (2,500) (764) 782 (2,482) (3,003) 18,515 15,512

(81,715) (3,263) (198,882) (10,164) (15,825) (13,000)

(68,585) (6,307)

(8,378) (13,119) (13,953)

(1,398) (1,495)

(6,656) 14,530

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Tata Steel | 3QFY2012 Result Update

Key ratios
Y/E March Valuation ratio (x) P/E (on FDEPS) P/CEPS P/BV Dividend yield (%) EV/Sales EV/EBITDA EV/Total assets Per share data (`) EPS (Basic) Adjusted EPS (fully diluted) Cash EPS DPS Book value DuPont analysis EBIT margin Tax retention ratio (%) Asset turnover (x) RoIC (Post-tax) Cost of debt (post tax) Leverage (x) Operating RoE Returns (%) RoCE (Pre-tax) Angel RoIC (pre-tax) RoE Turnover ratios (x) Asset turnover (gross block) Inventory (days) Receivables (days) Payables (days) WC cycle (days) Solvency ratios (x) Net debt to equity Net debt to EBITDA Interest coverage 1.4 2.8 3.2 1.9 3.0 4.2 2.0 5.8 1.2 1.4 3.1 4.2 0.9 3.9 2.4 0.8 2.8 3.3 2.3 73 51 27 34 1.5 60 32 26 52 1.0 71 41 77 44 1.1 84 45 81 34 1.1 84 45 81 41 1.2 84 45 81 36 21.0 30.1 50.6 15.4 33.9 16.0 5.5 22.9 (8.0) 13.9 33.1 30.8 7.0 21.1 18.8 9.4 29.6 10.9 10.1 75.3 6.1 46.1 9.7 1.4 98.6 9.4 2.4 16.1 4.6 1.9 38.4 3.5 1.2 (285.0) (412.4) 2.0 (25.1) 9.8 73.2 1.5 11.1 4.2 1.4 20.7 5.2 89.0 1.7 8.0 5.4 0.9 10.5 7.1 67.0 1.5 7.4 4.5 0.8 9.7 71.9 (6,841.4) 176.8 104.2 217.1 18.4 450.0 66.1 89.3 109.8 17.8 330.2 (24.9) (20.5) 28.0 257.3 99.0 77.5 139.7 12.9 370.9 81.9 40.8 129.9 11.2 492.7 57.7 57.0 121.4 7.9 549.9 2.9 2.2 1.1 3.9 0.6 4.7 0.9 8.1 4.3 1.4 3.8 0.6 4.8 1.0 17.0 1.8 0.8 10.3 1.0 6.1 3.4 1.3 2.7 0.7 5.5 0.9 11.6 3.7 1.0 2.3 0.7 7.5 0.7 8.3 3.9 0.9 1.7 0.6 5.3 0.7 FY2008 FY2009 FY2010 FY2011 FY2012E FY2013E

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Tata Steel | 3QFY2012 Result Update

Research Team Tel: 022 - 3935 7800

E-mail: research@angelbroking.com

Website: www.angelbroking.com

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Disclosure of Interest Statement 1. Analyst ownership of the stock 2. Angel and its Group companies ownership of the stock 3. Angel and its Group companies' Directors ownership of the stock 4. Broking relationship with company covered

Tata Steel No No No No

Note: We have not considered any Exposure below ` 1 lakh for Angel, its Group companies and Directors.

Ratings (Returns) :

Buy (> 15%) Reduce (-5% to 15%)

Accumulate (5% to 15%) Sell (< -15%)

Neutral (-5 to 5%)

February 10, 2012

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