financial analysis & market research on JSPL company

1. Abhishek watt 02
Sonu Singh 43
Bishakh Dutt 11
Mukesh kumar 30
Ranjan kumar 38
Presented to :- Prof. Rehmat Anjum
Presented by :- Group 8

2. • Jindal Steel and Power Limited (JSPL) has Incorporated in 1979, the
founder of the business was Mr. O P Jindal.
• JSPL is one of India’s leading steel manufacturers with a significant
presence in power generation, mining and infrastructure.
 The business operations span across Asia, Africa, the Middle East and
Australia.
 JSPL is an industrial powerhouse with a dominant presence in steel, power,
mining and infrastructure sectors.
 The company is constantly expanding its capabilities to fuel its fairy tale
journey that has seen it grow to a US $ 3.3 billion business conglomerate.

3.  The company has committed investments exceeding US $ 30 billion in the
future.
 The company produces steel and power through backward integration from its
own captive coal and iron-ore mines.
 From the widest flat products to a whole range of long products, JSPL today
sports a product portfolio that caters to markets across the steel value chain.
 The company produces the world's longest (121-meter) rails and it is the first in
the country to manufacture large-size parallel flange beams.
 JSPL operates the largest coal-based sponge iron plant in the world and has an
installed capacity of 3 MTPA (million tons per annum) of steel at Raigarh in
Chhattisgarh.
 Also, it has set up a 0.6 MTPA wire rod mill and a 1 MTPA capacity bar mill at
Patratu, Jharkhand, a medium and light structural mill at Raigarh,
Chhattisgarh and a 2.5 MTPA steel melting shop and a plate mill to produce up
to 5.00-meter-wide plates at Angul, Odisha.

5. .
KEY CUSTOMERS TO THE COMPANY

6. PROCESS
OF
COMPANY
RAW
MATERIAL
SOURCING&
PROCUREMENT
CORE
BUSINESS
MOVING
UP THE
VALUE
CHAIN
CLOSING
THE
LOOP
COAL
REUSING
SCRAP &
PRODUCE
D IN
OPERATIO
N
(RAIGARH)
STEEL
ANGUL
RAIGARH
OMAN
FABRICATED STRUCTURE (PUNJIPATRA)
MACHINERY DIVISION (RAIPUR)
IRONE
ORE
GAS
POWER
THARMAL
HYDRO-POWER
WIND POWER
MINES &
MINERALS
ASIA
AFRICA
AUSTRALIA

8. QUALITY POLICY :-
Production and on time delivering quality products that conform to our
customers’ requirements.
Continually improving our systems and processes by value addition and
product development through innovation.
Up gradation of relevant technology for continuing suitability to the
changing needs of the organization and ensure training and development
of the employees.
Involving all employees for implementing and continually improving the
effectiveness of the quality management system.
Periodically reviewing the policy and quality objectives and
communicating across the organization to align with the business
requirements.
Training and motivating all employees to ensure that the entire
corporation is equipped and capable of achieving quality objectives

13. • INDUSTRY LIB.. & ASSETS GRAPH..

14. INDUSTRY P&L
This 2 graph show the industrial
growth ratio on profit & loss account
Of industry

15. GRAPHS
INVESTMENTS
YEAR Mar' 15 Mar' 16 Mar' 17
AMOUNT
2,486.96
3087.486589 3766.530694
INVENTORIES
YEAR Mar' 15 Mar' 16 Mar' 17
AMOUNT
3,720.03
4627.353316 5795.046407
THE ALL GRAPHS SHOWING THAT CONTINUOUS INCREASE INVESTMENT AND
INVENTORIES YEAR BY YEAR

16. COMPARISION OF JSPL WITH INDUSTRY
-400%
-350%
-300%
-250%
-200%
-150%
-100%
-50%
0%
50%
100%
2010-11 2011-12 2012-13 2013-14 2014-2015
JSPL
Industry
We can say that over the period of 2010-2015 JSPL has
been above industry on the basis of net profit, so
industry can look up to JSPL for setting a standard from
its performance.
NET PROFIT OF INDUSTRY HAS DECLINED FROM FY2010 TO FY2015

17. FINDINGS and SUGGESTIONS
The company’s fixed assets have increased.
There is an increase in current assets.
Current liabilities and provision has also increased.
Investments of JSP will increase in coming FY 2016 & 2017.
Sale has also increased.
There is also increase in total income.
JSPL has remained above or similar to the industry in almost every
criteria of our analysis except in terms of liquidity and inventory
conversion period.
But overall JSPL is performing well if compared with the industry.
JSPL is been able to meet the industry standards in its performance
from FY 2010 to FY 2015 but its net profit is declining at drastic rate
from Rs. 1476.75 Cr. in 2010-11 to Rs. 497.09 Cr. in 2014-15

18. JSPL may take necessary steps to improve its liquidity
position as it may affect the image of company in front
of its stakeholders.
The threat of new entrants is high.
Rivalry among the existing competitors in the industry is
high.
JSPL should look into its declining EPS.
JSPL should look into its production process.
 JSPL rate of growth in inventories is 25% and industry is 24%.
RECOMMENDATIONS
ACCORDING TO THE ANALYSIS