Financial analysis steel industry
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Transcript of Financial analysis steel industry
STEEL
Financial Statement Analysis
Steel Industry
STEEL
CMA Sahil Dargan
STEEL
Third-largest producer of crude steel
Strong growth opportunities
Technological Advancement
Rising domestic and international investments
Advantage India
Advantage India
Market Value : USD 87.8
Billion
Robust Demand
Increasing Investment
Competitive Advantage
Policy Support
2015E 2025E Market Value :
USD300 billion
STEEL
MARKET OVERVIEW
&
TRENDS
STEEL
1907-1918
1954-1964
1973-1992
2015
1993-2014
Production of steel
started in India (TISCO)
•HSL & Bokaro Steel were
setup.
•Public sector dominated
steel production
SAIL was created
as a holding company to
oversee most of India‘s
production
• Foreign players entered
• Decontrol of domestic steel
Prices
• Reduction in basic
custom duty for initial set
up
•Government is
implementing many
infra projects
STEEL
Structure of Steel Sector
STEEL
Total Finished Steel Production
(MT)
13.25 12.52 12.82 13.44 9.38
55.37 63.18 68.86 74.24
55.82
Private Sector
Public Sector
STEEL
Key Market Players STEEL
STEEL
Growing Investments Entry of Intl Cos.
Strategic Alliances
Increased Emphasis on Technological Innovation
Notable Trends
Key Steel Plants in India
Key Steel
Plants
STEEL
Rising Investments
STEEL
Analysis Stories
STEEL
0
0.1
0.2
0.3
0.4
0.5
Quick Ratio
Quick Ratio
2015 (Q3)
2015 (Q2)
2015 (Q1)
2014 (Q4)
2014 (Q3)
Quick Ratio
0.47 0.38 0.38 0.38 0.39 Ranking # 37 # 51 # 53 # 52 # 53
STEEL
2015 (Q3)
2015 (Q2)
2015 (Q1)
2014 (Q4)
2014 (Q3)
Working Capital Ratio 2.47 2.36 2.37 2.32 2.3
Ranking # 9 # 13 # 12 # 13 # 14
2.2
2.25
2.3
2.35
2.4
2.45
2.5
WC Ratio
WC Ratio
STEEL
2015 (Q3)
2015 (Q2)
2015 (Q1)
2014 (Q4)
2014 (Q3)
Leverage Ratio 1.42 1.76 1.74 1.74 1.73
Ranking # 27 # 41 # 41 # 44 # 45
0 0.2 0.4 0.6 0.8
1 1.2 1.4 1.6 1.8
Leverage Ratio
Leverage Ratio
STEEL
2015 (Q3)
2015 (Q2)
2015 (Q1)
2014 (Q4)
2014 (Q3)
Total Debt to Equity 0.74 0.9 0.87 0.85 0.84
Ranking # 41 # 54 # 53 # 50 # 53
0
0.5
1
1.5
2
Total Debt to Equity
Total Debt to Equity
STEEL
2015 (Q3)
2015 (Q2)
2015 (Q1)
2014 (Q4)
2014 (Q3)
Interest Coverage 4.29 3.9 4.6 5.54 4.68
Ranking # 70 # 78 # 77 # 69 # 75
0
1
2
3
4
5
6
Interest Coverage
Interest Coverage
STEEL
0
0.1
0.2
0.3
Debt Coverage
Debt Coverage
2015 (Q3)
2015 (Q2)
2015 (Q1)
2014 (Q4)
2014 (Q3)
Debt Coverage 0.23 0.22 0.26 0.3 0.26
Ranking # 66 # 74 # 67 # 63 # 67
STEEL
STEEL
Business Model STEEL
STEEL
STEEL
STEEL
STEEL
STEEL
STEEL
Financial Performance
Tata Steel
STEEL
STEEL
STEEL
STEEL
STEEL
HIGHLIGHTS
STEEL
Reaping Benefits Of
Prudent Investments
STEEL
STEEL Reaping Benefits Of
Prudent Investments
STEEL
Transition Into Integrated
Steel Producer
STEEL
STEEL
STEEL
STEEL
STEEL
STEEL Industry
Thank You CMA Sahil Dargan