This is an amateur analysis of Tata Steel by me for a course called "Value Engineering" which is a part of the curriculum of "Industrial Engineering and Management"

1. Value Engineering
ANALYSIS OF THE FINANCIALS OF A
COMPANY
Avinash Kumar Rai
Aakash Saluja
Bhavuk Singla
Aaditya Nagpal

2. TATA STEEL- A BRIEF INTRO
• Indian multi-national steel company headquartered in Mumbai
• Among top 10 global steel companies with annual crude steel
capacity of over 28 million
tonnes per annum (mtpa)
• Ranked 401st in the 2012 Fortune Global 500 ranking
• Has manufacturing operations in 26 countries, including Australia,
China, India, the Netherlands, Singapore, Thailand and the United
Kingdom, and commercial presence in
about 50 countries
• Employs about 81,000 people
• Part of the prestigious TATA GROUP
• The largest plant of the company is located in
Jamshedpur, India (6.8mtpa)

3. HISTORICAL TIMELINE
• 1907-1908 The town of Sakchi is
discovered which is to be the place
where the 1st steel plant of India
would be located and the
construction work begins and the
TATA IRON AND STEEL COMPANY is
formed.
• 1911-1912 The first blast furnace
went into operation successfully and
the first ingot of steel rolled out of the
Sakchi Plant amidst much rejoicing
• 1937 Retiring Gratuity Scheme was
launched
• 1941 manufacture of special steel for
war purpose was commenced

4. • 1980 First phase of the four-
phased modernisation
programme started
• 1999 SAP was introduced
• 2002 Tata Steel was conferred the
Prime Minister's Trophy for the
Best Integrated Steel Plant for the
third consecutive year and four
times in all
• 2007 Integration of Tata Steel and
Corus was accomplished at US $
12 billion, making Tata Steel one
among the top ten steel producers
globally and the second-most
geographically diversified steel
producer in the world

5. • 2005 The name of the
company was changed from
Tata Iron and Steel company
to Tata Steel Limited
• 2008 Indian Prime Minister Dr.
Manmohan Singh unveils the
Centenary Postage Stamp, to
commemorate Tata Steel's
Centenary year
• 2008 The company won the
Deming Application Prize
• 2012 Tata Steel became the
first steel company to win the
Deming grand prize

6. BOARD OF DIRECTORS
Cyrus P. Mistry
Non Executive Chairman of the Board
B. Muthuraman
Non Executive Vice-Chairman
H.M. Nerukar
Managing Director & CEO
Ishaat Husain
Non Executive Director
Karl-Ulrich Köhler
Non Executive Director
Koushik Chatterjee
Finance Director
Independent Directors
Nusli Neville Wadia
Subodh Bhargava
Jacobus Schraven
Andrew Robb
Mallika Srinivasan
D. K. Mehrotra
OP Bhatt
Ratan N. Tata
Chairman Emeritus

7. SUBSIDIARIES
Major International Acquisitions :
• Tata Steel Europe (formerly Corus PLC in 2007)
• Tata Steel Thailand (formerly Millennium Steel in 2005)
• Nat Steel Holdings, Singapore (in 2004)
Other Subsidiaries :
• Tata Sponge Iron Limited
• Tata Metaliks
• Tata Steel KZN Pte Limited
• TRL Krosaki Refractories Limited
• The Tinplate Company of India Limited
• Tata Steel Processing & Distribution Limited

8. BALANCE SHEET PROFIT & LOSS
STATEMENT

9. BALANCE SHEET
The balance sheet is a summary of the
financial position of an organisation at a
particular point of time. This position is
conveyed by listing all the things of value
(assets) owned by the organisation on one
side and the payables owed by the
organisation on the other side.

10. THE BALANCE SHEET EQUATION
NET WORTH = ASSETS - LIABILITIES

11. PROFIT AND LOSS STATEMENT
(Income Statement)
An orderly list of all the revenues and all the
expenses at the end of the financial period .
The difference between revenues and
expenses gives an estimate of the profit or
loss of the period i.e. the net earnings of the
business.

12. CONTENTS OF PROFIT & LOSS STATEMENT
Sales (or revenue)
less : cost of goods sold
Gross profit
less operating expenses
Operating profit
less: non operating expenses
Profit before interest and tax (PBIT)
Less: interest
Profit before tax(PBT)
Less : tax
Profit after tax (PAT)
Add : previous year’s balance of P&L A/C
Profit available for distribution
Less : appropriations
Retained earnings

13. CONSOLIDATED AND STANDALONE
STATEMENTS
• CONSOLIDATED FINANCIAL STATEMENT
A consolidated financial statement covers the activities of
the parent company and its subsidiaries in a single report, as
if they were all a single company operating under one roof.
• STAND-ALONE FINANCIAL STATEMENT
Stand-alone financial statements, by contrast, treat each
entity as if it were entirely separate -- the parent unrelated
to the subsidiaries, and the subsidiaries unrelated to one
another.

14. DETAILED ANALYSIS OF THE
FINANCIALS

15. A STEEL MULTINATIONAL

16. GEAGRAPHICAL DISTRIBUTION OF REVENUE
INDIA [27%]
ASIA (excluding INDIA) [13%]
UK [26%]
EU (excluding UK) [29%]
REST OF THE WORLD [5%]

17. STANDALONE BALANCE SHEET
LIABILITIES SIDE
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Mar '06 Mar '05 Mar '04
SOURCES OF FUNDS
Total Share Capital 971.41 971.41 959.41 887.41 6,203.45 6,203.30 580.67 553.67 553.67 369.18
Equity Share Capital 971.41 971.41 959.41 887.41 730.79 730.78 580.67 553.67 553.67 369.18
Share Application
Money 0 0 178.2 0 0 0 147.06 0 0 0
Preference Share
Capital 0 0 0 0 5,472.66 5,472.52 0 0 0 0
Reserves 54,238.27 51,245.05 47,307.02 36,281.34 23,501.15 21,097.43 13,368.42 9,201.63 6,506.25 4,146.68
Revaluation
Reserves 0 0 0 0 0 0 0 0 0 0
NETWORTH 55,209.68 52,216.46 48,444.63 37,168.75 29,704.60 27,300.73 14,096.15 9,755.30 7,059.92 4,515.86
Secured Loans 2,036.02 1,919.27 2,013.00 2,259.32 3,913.05 3,520.58 3,758.92 2,191.74 2,468.18 3,010.16
Unsecured Loans 23,875.49 21,774.55 26,288.14 22,979.88 23,033.13 14,501.11 5,886.41 324.41 271.52 363.12
TOTAL DEBT 25,911.51 23,693.82 28,301.14 25,239.20 26,946.18 18,021.69 9,645.33 2,516.15 2,739.70 3,373.28
TOTAL LIABLITIES 81,121.19 75,910.28 76,745.77 62,407.95 56,650.78 45,322.42 23,741.48 12,271.45 9,799.62 7,889.14

18. STANDALONE BALANCE SHEET
ASSETS SIDE
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Mar '06 Mar '05 Mar '04
APPLICATION OF FUNDS
Gross Block 38,531.91 23,485.63 22,846.26 22,306.07 20,057.01 16,479.59 16,029.49 15,407.17 13,085.07 12,505.83
Less: Accum. Depreciation 13,656.86 12,119.37 11,041.16 10,143.63 9,062.47 8,223.48 7,486.37 6,699.85 5,845.49 5,411.62
NET BLOCK 24,875.05 11,366.26 11,805.10 12,162.44 10,994.54 8,256.11 8,543.12 8,707.32 7,239.58 7,094.21
Capital Work in Progress 8,722.29 18,506.63 6,969.38 3,843.59 3,487.68 4,367.45 2,497.44 1,157.73 1,872.66 763.64
INVESTMENTS 50,418.80 50,282.52 46,564.94 44,979.67 42,371.78 4,103.19 6,106.18 4,069.96 2,432.65 2,194.12
Inventories 5,257.94 4,858.99 3,953.76 3,077.75 3,480.47 2,604.98 2,332.98 2,174.75 1,872.40 1,249.08
Sundry Debtors 796.92 904.08 428.03 434.83 635.98 543.48 631.63 539.4 581.82 651.3
Cash and Bank Balance 2,218.11 30.82 512.76 500.3 463.58 465 446.51 288.35 246.68 250.54
Total Current Assets 8,272.97 5,793.89 4,894.55 4,012.88 4,580.03 3,613.46 3,411.12 3,002.50 2,700.90 2,150.92
Loans and Advances 9,587.82 6,935.20 16,814.04 6,678.55 5,884.61 34,582.84 4,025.95 1,994.46 2,234.96 2,782.49
Fixed Deposits 0 3,918.93 3,628.78 2,733.84 1,127.02 0.04 7,234.84 0.04 0.04 0.2
Total CA, Loans & Advances 17,860.79 16,648.02 25,337.37 13,425.27 11,591.66 38,196.34 14,671.91 4,997.00 4,935.90 4,933.61
Deffered Credit 0 0 0 0 0 0 0 0 0 0
Current Liabilities 17,098.06 16,975.61 10,383.04 8,699.34 8,965.76 6,842.26 6,349.24 4,552.39 4,247.43 3,908.93
Provisions 3,657.68 3,917.54 3,547.98 3,303.68 2,934.19 2,913.52 1,930.46 2,361.44 2,648.56 3,343.48
Total CL & Provisions 20,755.74 20,893.15 13,931.02 12,003.02 11,899.95 9,755.78 8,279.70 6,913.83 6,895.99 7,252.41
NET CURRENT ASSETS -2,894.95 -4,245.13 11,406.35 1,422.25 -308.29 28,440.56 6,392.21 -1,916.83 -1,960.09 -2,318.80
Miscellaneous Expenses 0 0 0 0 105.07 155.11 202.53 253.27 214.82 155.97
TOTAL ASSETS 81,121.19 75,910.28 76,745.77 62,407.95 56,650.78 45,322.42 23,741.48 12,271.45 9,799.62 7,889.14

19. CONSOLIDATED BALANCE SHEET
LIABILITIES SIDE
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Mar '06 Mar '05 Mar '04
SOURCES OF FUNDS
Total Share Capital 992.62 993.84 958.74 886.74 6,202.78 6,202.63 580 553 552.27 368.24
Equity Share Capital 971.41 971.41 958.74 886.74 730.12 730.11 580 553 552.27 368.24
Share Application
Money 0 17.46 195.66 17.46 17.46 17.46 164.52 0 2.1 0
Preference Share
Capital 21.21 22.43 0 0 5,472.66 5,472.52 0 0 0 0
Reserves 33,200.83 41,644.81 35,926.97 22,134.10 21,039.84 27,971.35 13,895.14 9,728.84 6,782.79 4,288.44
Revaluation Reserves 0 0 0 0 0 0 0 0 0 0
NETWORTH 34,193.45 42,656.11 37,081.37 23,038.30 27,260.08 34,191.44 14,639.66 10,281.84 7,337.16 4,656.68
Secured Loans 24,701.81 27,482.74 28,604.40 28,059.33 34,329.26 35,415.22 4,961.23 2,502.74 2,668.11 3,111.75
Unsecured Loans 32,545.37 24,729.58 32,079.94 25,041.02 25,571.24 18,177.53 19,964.30 874.69 647.52 386.2
TOTAL DEBT 57,247.18 52,212.32 60,684.34 53,100.35 59,900.50 53,592.75 24,925.53 3,377.43 3,315.63 3,497.95
Minority Interest 1,669.36 1,091.15 888.9 884.07 894.88 832.7 598.39 123.57 93.52 48.66
Policy Holders Funds 0 0 0 0 0 0 0 0 0 1,581.81
TOTAL LIABILITIES 93,109.99 95,959.58 98,654.61 77,022.72 88,055.46 88,616.89 40,163.58 13,782.84 10,746.31 9,785.10

20. CONSOLIDTED BALANCE SHEET ASSETS SIDE
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Mar '06 Mar '05 Mar '04
APPLICATION OF FUNDS
Gross Block 148,329.94 129,093.78 113,399.58 111,830.82 114,823.59 114,279.31 20,303.44 16,744.68 14,129.27 13,606.70
Less: Accum. Depreciation 79,837.87 69,638.85 61,592.15 60,812.60 63,083.16 63,162.42 9,189.62 7,199.99 6,206.39 5,589.06
NET BLOCK 68,492.07 59,454.93 51,807.43 51,018.22 51,740.43 51,116.89 11,113.82 9,544.69 7,922.88 8,017.64
Capital Work in Progress 13,786.15 20,039.71 15,884.17 9,319.43 8,930.07 8,896.19 3,326.37 1,357.41 1,896.04 0
INVESTMENTS 3,257.66 4,021.25 7,847.34 5,417.79 6,411.10 3,367.43 16,497.50 3,478.90 2,594.18 2,254.97
Inventories 24,091.19 25,598.00 24,055.24 18,686.64 21,668.70 23,064.34 3,888.13 2,773.31 2,489.90 1,374.04
Sundry Debtors 13,993.96 14,878.48 14,816.28 11,623.95 13,031.63 18,696.32 1,686.53 1,218.72 1,324.07 756.06
Cash and Bank Balance 9,859.67 10,801.58 10,892.60 6,787.81 6,148.36 4,231.64 10,887.96 776.75 465.73 277.87
Total Current Assets 47,944.82 51,278.06 49,764.12 37,098.40 40,848.69 45,992.30 16,462.62 4,768.78 4,279.70 2,407.97
Loans and Advances 13,425.72 12,001.92 10,180.08 6,884.24 13,098.66 19,390.88 2,970.68 1,906.84 1,592.36 687.7
Fixed Deposits 0 39.39 0 0 0 0 0 0 0 0
Total CA, Loans & Advances 61,370.54 63,319.37 59,944.20 43,982.64 53,947.35 65,383.18 19,433.30 6,675.62 5,872.06 3,095.67
Deffered Credit 0 0 0 0 0 0 0 0 0 0
Current Liabilities 45,496.70 42,790.58 29,738.61 25,157.53 24,878.85 32,764.79 7,219.31 5,052.25 5,139.67 3,211.23
Provisions 8,299.73 8,085.10 7,089.92 7,557.83 8,200.12 7,537.64 3,197.87 2,477.54 2,617.42 528.05
Total CL & Provisions 53,796.43 50,875.68 36,828.53 32,715.36 33,078.97 40,302.43 10,417.18 7,529.79 7,757.09 3,739.28
NET CURRENT ASSETS 7,574.11 12,443.69 23,115.67 11,267.28 20,868.38 25,080.75 9,016.12 -854.17 -1,885.03 -643.61
Minority Interest 0 0 0 0 0 0 0 0 0 0
Miscellaneous Expenses 0 0 0 0 105.48 155.63 209.77 256.01 218.24 156.1
TOTAL ASSETS 93,109.99 95,959.58 98,654.61 77,022.72 88,055.46 88,616.89 40,163.58 13,782.84 10,746.31 9,785.10

21. NET WORTH
0
10000
20000
30000
40000
50000
60000
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
STANDALONE
CONSOLIDATED
Rs. Crores

22. TOTAL DEBT
0
10000
20000
30000
40000
50000
60000
70000
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
STANDALONE
CONSOLODATED
Rs. Crores

23. STANDALONE P&L ACCOUNT (Page 1)
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Mar '06 Mar '05 Mar '04
INCOME
Sales
Turnover 42,317.24 37,005.71 31,901.94 26,757.60 26,843.53 22,191.43 19,756.84 17,136.92 15,867.62 11,917.88
Excise Duty 4,117.81 3,167.20 2,594.59 1,816.95 2,495.21 2,537.02 2,304.18 2,004.83 1,377.92 1,218.57
Net Sales 38,199.43 33,838.51 29,307.35 24,940.65 24,348.32 19,654.41 17,452.66 15,132.09 14,489.70 10,699.31
Other Income 227.51 923.42 1,435.80 1,241.08 603.07 586.41 362.12 252.58 108.75 7.63
Stock
Adjustments 404.6 220.72 173.65 -134.97 289.27 38.73 82.47 104.91 289.55 64.46
TOTAL
INCOME 38,831.54 34,982.65 30,916.80 26,046.76 25,240.66 20,279.55 17,897.25 15,489.58 14,888.00 10,771.40
EXPENDITURE
Raw Materials 12,421.63 9,917.37 9,395.92 8,356.45 8,568.71 6,063.53 5,762.42 4,766.44 4,578.43 3,456.28
Power & Fuel
Cost 2,510.17 1,990.16 1,558.49 1,383.44 1,222.48 1,038.77 1,027.84 897.57 778.3 724.62
Employee
Cost 3,608.52 3,047.26 2,618.27 2,361.48 2,305.81 1,589.77 1,454.83 1,351.51 1,291.00 1,349.59
Other
Manufacturing
Expenses 1,381.08 3,618.22 2,905.16 2,419.89 2,127.48 1,654.96 1,561.40 1,466.83 1,440.72 1,130.30
Selling and
Admin
Expenses 0 2,383.34 574.86 417.9 400.24 247.77 244.92 255.93 259.74 273.55
Miscellaneous
Expenses 8,432.52 1,568.62 1,456.83 1,287.04 1,180.08 1,029.30 805.99 727.12 679.86 509.78
Preoperative
Exp
Capitalised -876.13 -478.23 -198.78 -326.11 -343.65 -175.5 -236.02 -112.62 -204.82 -155.28
Total
Expenses 27,477.79 22,046.74 18,310.75 15,900.09 15,461.15 11,448.60 10,621.38 9,352.78 8,823.23 7,288.84

24. STANDALONE P&L ACCOUNT (Page 2)
Mar '13 Mar '12 Mar '11 Mar '10 Mar 09 Mar '08 Mar '07 Mar '06 Mar '05 Mar '04
OPERATING PROFIT 11,126.24 12,012.49 11,170.25 8,905.59 9,176.44 8,244.54 6,913.75 5,884.22 5,956.02 3,474.93
PBDIT 11,353.75 12,935.91 12,606.05 10,146.67 9,779.51 8,830.95 7,275.87 6,136.80 6,064.77 3,482.56
Interest 1,876.77 1,925.42 1,686.27 1,848.19 1,489.50 929.03 251.25 168.44 228.8 230.56
PBDT 9,476.98 11,010.49 10,919.78 8,298.48 8,290.01 7,901.92 7,024.62 5,968.36 5,835.97 3,252.00
Depreciation 1,640.38 1,151.44 1,146.19 1,083.18 973.4 834.61 819.29 775.1 618.78 625.11
Other Written Off 0 0 0 0 0 0 0 0 0 0
Profit Before Tax 7,836.60 9,859.05 9,773.59 7,215.30 7,316.61 7,067.31 6,205.33 5,193.26 5,217.19 2,626.89
Extra-ordinary items 0 0 0 0 0 0 57.29 47.5 80.79 39.77
PBT (Post Extra-ord
Items) 7,836.60 9,859.05 9,773.59 7,215.30 7,316.61 7,067.31 6,262.62 5,240.76 5,297.98 2,666.66
Tax 2,773.63 3,162.63 2,912.44 2,168.50 2,114.87 2,380.28 2,040.47 1,734.38 1,823.82 920.44
REPORTED NET
PROFIT 5,062.97 6,696.42 6,865.69 5,046.80 5,201.74 4,687.03 4,222.15 3,506.38 3,474.16 1,746.22
Total Value Addition 15,056.16 12,129.37 8,914.83 7,543.64 6,892.44 5,385.07 4,858.96 4,586.34 4,244.80 3,832.56
Preference Dividend 0 0 0 45.88 109.45 22.19 0 0 0 0
Equity Dividend 776.97 1,165.46 1,151.06 709.77 1,168.95 1,168.93 943.91 719.51 719.51 368.98
Corporate Dividend
Tax 128.73 181.57 156.71 122.8 214.1 202.43 160.42 100.92 101.86 47.27
PER SHARE DATA (ANNUALISED)
Shares in issue (lakhs) 9,712.15 9,712.14 9,592.14 8,872.14 7,305.92 7,305.84 5,804.73 5,534.73 5,534.73 3,677.72
EARNING PER
SHARE (Rs.) 52.13 68.95 71.58 56.37 69.7 63.85 72.74 63.35 62.77 47.48
Equity Dividend (%) 80 120 120 80 160 160 155 130 130 100
Book Value (Rs) 568.46 537.64 503.19 418.94 331.68 298.78 240.31 176.26 127.56 122.79

25. CONSOLIDATED P&L ACCOUNT (Page 1)
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Mar '06 Mar '05 Mar '04
INCOME
Sales Turnover 138,821.14 135,975.56 121,345.75 104,229.83 149,984.94 134,089.02 27,437.29 22,272.14 17,414.52 12,372.53
Excise Duty 4,109.60 3,075.86 2,686.43 1,924.00 2,620.11 2,588.74 2,319.51 2,027.71 1,415.91 1,243.09
Net Sales 134,711.54 132,899.70 118,659.32 102,305.83 147,364.83 131,500.28 25,117.78 20,244.43 15,998.61 11,129.44
Other Income -6,910.73 4,934.95 3,687.41 -61.87 -3,358.50 6,926.67 340.87 213.15 123.22 -67.71
Stock
Adjustments -1,418.92 785.93 1,355.98 -660.04 -1,975.94 890.53 540.22 47 289.02 123.99
TOTAL INCOME 126,381.89 138,620.58 123,702.71 101,583.92 142,030.39 139,317.48 25,998.87 20,504.58 16,410.85 11,185.72
EXPENDITURE
Raw Materials 68,955.31 74,555.02 61,193.71 51,855.32 82,457.46 68,159.81 10,353.64 7,460.93 4,788.73 3,015.18
Power & Fuel
Cost 6,544.38 5,935.48 4,889.18 4,885.05 6,985.10 5,638.98 1,600.71 1,133.70 842.66 84.16
Employee Cost 18,918.25 17,228.64 15,286.92 16,462.99 17,975.06 16,673.21 1,884.97 1,672.46 1,414.42 1,401.78
Other
Manufacturing
Expenses 5,152.01 7,456.60 6,606.07 6,053.34 7,137.97 7,259.74 1,545.55 1,407.44 1,375.30 0
Selling and
Admin Expenses 0 0 11,009.76 9,599.68 11,714.25 11,360.66 1,600.53 1,480.69 1,268.65 0
Miscellaneous
Expenses 22,718.45 16,950.73 4,978.70 4,687.37 1,727.48 5,585.74 1,303.41 992.05 707.61 3,364.52
Preoperative Exp
Capitalised -1,316.99 -857.63 -219.63 -165.47 -783.07 -597.03 -355.2 -194.58 -234.49 -164.64
Total Expenses 120,971.41 121,268.84 103,744.71 93,378.28 127,214.25 114,081.11 17,933.61 13,952.69 10,162.88 7,701.00

26. CONSOLIDATED P&L ACCOUNT (Page 2)
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08 Mar '07 Mar '06 Mar '05 Mar '04
OPERATING
PROFIT 12,321.21 12,416.79 16,270.59 8,267.51 18,174.64 18,309.70 7,724.39 6,338.74 6,124.75 3,552.43
PBDIT 5,410.48 17,351.74 19,958.00 8,205.64 14,816.14 25,236.37 8,065.26 6,551.89 6,247.97 3,484.72
Interest 3,968.11 4,250.11 3,426.67 3,659.77 3,790.69 4,588.64 635.67 206.41 238.6 129.3
PBDT 1,442.37 13,101.63 16,531.33 4,545.87 11,025.45 20,647.73 7,429.59 6,345.48 6,009.37 3,355.42
Depreciation 5,575.32 4,516.65 4,414.82 4,491.73 4,265.39 4,136.95 1,010.98 860.37 645.46 640.55
Other Written Off 0 0 0 0 0 0 0 0 0 0
Profit Before Tax -4,132.95 8,584.98 12,116.51 54.14 6,760.06 16,510.78 6,418.61 5,485.11 5,363.91 2,714.87
Extra-ordinary items 0 0 18.5 14.72 15.01 -10.4 62.47 56.28 82.04 0
PBT (Post Extra-ord
Items) -4,132.95 8,584.98 12,135.01 68.86 6,775.07 16,500.38 6,481.08 5,541.39 5,445.95 2,714.87
Tax 3,229.44 3,636.46 3,247.26 2,153.46 1,895.68 4,051.03 2,148.52 1,794.99 1,871.96 936.25
REPORTED NET
PROFIT -7,362.39 4,948.52 8,856.05 -2,120.84 4,849.24 12,321.76 4,165.61 3,721.07 3,571.20 1,778.62
Minority Interest -214.46 -173.14 -60.28 15.24 -40.94 139.94 67.52 18.64 25.96 19.28
Share Of P/L Of
Associates -90.31 -268.11 -66.36 -126.86 -60.72 -168.16 -79.18 -32.19 -58.02 -29.44
Net P/L After
Minority Interest &
Share Of
Associates 332.26 5,389.77 6,653.98 -340.22 9,030.42 6,603.54 4,114.80 3,678.21 3,497.53 1,999.19
Total Value Addition 52,016.10 46,713.82 42,551.00 41,522.96 44,756.79 45,921.30 7,579.97 6,491.76 5,374.15 4,685.82
Preference Dividend 0.21 0.21 0 45.88 109.45 22.19 0 0 0 0
Equity Dividend 776.97 1,165.46 1,150.25 709.23 1,167.88 1,167.86 942.87 718.64 717.69 368.05
Corporate Dividend
Tax 226.41 185.71 163.22 154.33 217.64 207.75 163.42 103.36 103.73 48.41
PER SHARE DATA
(ANNUALISED)
Shares in issue
(lakhs) 9,712.15 9,712.14 9,585.43 8,865.43 7,299.21 7,299.13 5,798.01 5,528.01 5,520.69 3,680.46
EARNING PER
SHARE (Rs) -75.81 50.95 92.39 -24.44 64.94 168.51 71.85 67.31 64.69 48.33
Equity Dividend (%) 0 0 0 0 0 0 0 0 0 0
Book Value (Rs) 351.85 438.79 384.81 259.67 298.25 393.22 249.66 186 132.86 126.52

27. SALES TURNOVER
0
20000
40000
60000
80000
100000
120000
140000
160000
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
STANDALONE
CONSOLIDATED
Rs. crores

28. OPERATING PROFIT
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
STANDALONE
CONSOLIDATED
Rs. Crores

29. NET PROFIT
-10000
-5000
0
5000
10000
15000
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
STANDALONE
CONSOLIDATED
Rs. Crores

30. SHAREHOLDING PATTERN
AND STOCK PRICE

32. PROMOTER’S HOLDING

33. SHARE PRICE DEPENDENCY
• FUNDAMENTAL FACTORS
• TECHNICAL FACTORS
• MARKET SENTIMENTS

34. FUNDAMENTAL FACTORS
• EARNING PER SHARE
• A VALUATION MULTIPLE (P/E RATIO)
• DEMAND AND SUPPLY

36. DEMAND AND SUPPLY
• This fundamental rule of economics holds good for the equity
market as well. The price is directly affected by the trend of stock
market trading. When more people are buying a certain stock, the
price of that stock increases and when more people are selling he
stock, the price of that particular stock falls. Now it is difficult to
predict the trend of the market but your stock broker can give you
fair idea of the ongoing trend of the market but be careful before
you blindly follow the advice.

37. TECHNICAL FACTORS
• INFLATION
• ECONOMIC STRENGTH OF MARKET AND
PEERS
• DEMOGRAPHICS
• TRENDS
• LIQUIDITY

38. MARKET SENTIMENTS
• The price of the stock of a
company is affected most of
the time by the general
market direction during a
session. In a bull market, the
stock price of most
companies will rise and in a
bear market the stock price
of most companies will fall.
One can gauge the market
sentiment by looking at stock
indexes or its future price
movement.

39. MARKET CAPITALISATION
• Market Cap - If you are trying to guess the worth
of a company from the price of the stock, you are
making a huge mistake. It is the market
capitalization of the company, rather than the
stock, that is more important when it comes to
determining the worth of the company. You need
to multiply the stock price with the total number
of outstanding stocks in the market to get the
market cap of a company and that is the worth of
the company.

40. NAME LAST PRICE(RS.) MARKET CAP.(CRORES)
TATA STEEL LTD. 218.45 21213.38
SAIL 40.1 16562.7
JINDAL STEEL 207 19387
COMPARE MARKET CAP WITH PEERS

41. 0
5000
10000
15000
20000
25000
TATA
STEEL LTD.
SAIL JINDAL
STEEL
MARKET CAP.(CRORES)
MARKET CAP.(CRORES)

42. TATA STEEL LTD. LISTED
• BOMBAY STOCK
EXCHANGE
• NATIONAL STOCK
EXCHANGE INDIA
LTD.
• LUXEMBOURG
STOCK EXCHANGE

43. SHARE PRICE CHART

45. FINAL ANALYSIS
WHAT WE THINK LIES AHEAD…..

46. TATA STEEL WRITEOFF
(Rs 8700 crores)
• $13 Billion dollar deal in 2007
to acquire Corus
• The shares were trading around
400 pence but were bought by
the Tatas at 608 pence
(premium of 34%)
• A write-off of $1.6 Billion
dollars (Rs. 8700 crores) of the
goodwill
• This is the reason for net loss in
FY ‘13.

47. MAJOR CHALLENGES
• Slump in the world steel
market. European demand has
fallen 30% since 2007
• Has a huge debt which could be
about 63,200 crore rupees by
the end of FY 14. Cash flows
would barely be able to match
the interest outflows.
• Huge debts have destroyed
value for the company and the
market capitalization is very low
• Tata Steel pays three fourths of
its EBITDA as interest
CYRUS P. MISTRY
Chairman
TATA Group & TATA STEEL

48. IMMEDIATE ACTION
• Reduce the fixed costs in the
European Operations
• Sell the non performing assets
in Europe
• Capacity addition in the
Indian operations as the OPM
is high
• Reduce the debt to at least
half in 2-3 years so as to stop
the huge interest outflow

49. 105 GLORIOUS YEARS….
AND STILL COUNTING

50. AND TOUCHING THE LIVES OF
PEOPLE….