1. A Comparative Study of
Financial Performance And
Growth Of TATA Steel Ltd and
JSW Steel Ltd.
4. Chapter 1- Nature and scope of the study.
Chapter 2- Concept of financial performance.
Chapter 3- Ratios analysis as a technique of
measuring financial performance.
Chapter 4- Profile of the companies under study.
Chapter 5 - Analysis and interpretation of data.
Chapter 6- findings and suggestion.
5. Financial performance refers to the
degree to which financial objectives are
being or have been accomplished.
It is the process of measuring the result
of a firm’s policies and operation in
Positive of financial performance in
business activities of an entity will lead to
high profit, increase reserve and
goodwill is the stockmarket.
6. Ratio is a mathematical
relationship between any two
. Ratio is designed to show how one
number is related to another. Ratio
analysis is an instrument for diagnosis of
the financial health of an enterprise.
. In financial analysis, a ratio is used as an
index for evaluating the financial position
of the concern
27. It in net sales’valume
2010 2011 2012 2013 2014
28. increase of capital employed
2010 2011 2012 2013 2014
29. There is increase in JSW’s debt at 102%. It automatically
led to an increase of the interest at 219%, this finally led to
reduction of the net profit at (-34%), and earnings per share.
While TATA’s net profit increased at 27% during the last five
years , and interest at 50.6%,
JSW had an increase in the current liabilities at 171.2%
during the period
While TATA had an increase in current liabilities at 109.8%
during the period
JSW had increasing in company’s debt at 108%,
There was an increase in share capital of JSW last year at
89.5%, and increase of capital reserve i.e. 44%.
For TATA, there is increase in debt of company at 74.6%
for last 5 years.
30. TATA’s share capital increased at 9.5%, and
capital reserve increased at 66.8% in first 2 years
Debtor turnover ratio for JSW decreased from
44.5 times to 22.1 times during the period
TATA’s debt turnover ratio was fine till 2010-
11which reached 68.1 times yearly, and reduced
to 53.2 in last 3 years
JSW was in an expansion phase in its sales
which increased at 148.8% during the period
TATA got marginal expansion at 66.7% in its
sales during the period
31. •JSW had expanded its capital employed at 121%
((from 30878.28 to 68425.68 crores)). This growth
came from an increase of equity at 150%, and
liabilities at 64.5%
•TATA had growth in capital employed at 98.2%.
•TATA’s growth was in slower index, but the company
maintained the good financial position, while JSW had
faster index growth, but it has come with increase in
•There was a reduction in global demand for iron steel
in last 4 years, which affected upon JSW’s financial
position more than TATA’s financial position.
32. JSW steel should try to repay a large part of
the debt, at the earliest. This will lead to
reduced interest burden and enhanced
. JSW must only expand to an extent where
the increased production can be sold in local
and global markets
JSW must try to increase its market share, so
that the increased production can be sold
and generate profits.
33. JSW should review its debtor’s policy to
control its debt and avoid high bad debt in
JSW should maintain more cash and
marketable securities which will enable the
company to face any unexpected problem
or contingencies in future.
Tata has been adversely effected by adverse
macro-economic condition, it has to look for
alternative market whether than domestic or
34. Tata Steel should continue its good
performance and try to increase its market
Tata should get high profit and high dividend
as compared to competitors to improve its
share price in security’s market.
Tata should make better utilization of its
inventory and have proper inventory
management system in place. This will lead to
increase in efficiency
35. Both of Tata steel and JSW steel are in global
market level, these led the company’s sales
to influence in any crisis happened in any
market of its production. Moreover, in any
developed countries, the infrastructure is at a
top level. Hence, the demand on iron steel is
very less, so both companies should look up
to alternative market in developing countries