Premium Essay

Financial Analysis of Jsw and Sail

In: Business and Management

Submitted By haggrawal
Words 9892
Pages 40
Group Research Project
Jindal Steel Works Ltd. & Steel Authority of
India Ltd.

Executive Summary
This report provides an elaboration of the steel industry of India as well highlights the comparison parameters of the current and prospective profitability, liquidity and financial stability of two major players of the industry – Jindal
Steel Works Ltd. and Steel Authority of India Ltd.
The analysis of the players includes trend prevalent in the industry, horizontal and vertical analysis of the organizations as well as ratios such as Interest Coverage, Solvency, Profitability and Performance. Other calculations include Z-Score analysis, Financial Statements Case analysis and Total Assets and earnings per share to name a few.
All calculations can be found in the attached excel files. Results of data analyzed show that SAIL has had a drastic downturn for the last five years whereas JSW has improved its value in the market by adoption of certain new technologies at timely intervals.
The report finds the prospects of the companies in their respective current positions are not positive. The major areas of weakness require further investigation and remedial action by management.
Some challenges that are being faced by the company as discovered during the Qualitative Analysis of the organizations are,

There have been multiple fluctuations in the market and the numerous possibilities of China's entrance into the exporting markets
Thought the domestic demand has remained untapped and unfulfilled, there is a reduced demand for steel across the world, due to the current economic scenario.

Taking into consideration the above challenges and understanding the financial as well as non-financial statuses of both the companies, some of the recommendations discussed in the report are as follows:

Both the companies have the capacity to...

Similar Documents

Premium Essay

Sail and Jsw Financial Analysis

...…………………………….69 Brief analysis of industry & industry trend: Pumps & compressor A....

Words: 18606 - Pages: 75

Premium Essay

Cost Analyis

...A PROJECT REPORT ON (“A STUDY ON COST COMPARISON ANALYSIS OF TATA STEEL AND ITS COMPETITORS”) SUBMITTED TO MAEER’s MIT SCHOOL OF BUSINESS BY (SOURAV GHOSH HAZRA) 322346 32ND Batch IN PARTIAL FULFILLMENT OF POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM) Finance APRIL-MAY 2015, MAEER’s MIT SCHOOL OF BUSINESS PUNE CONTENTS Chapter No. Title Page No. Declaration from the Student Certificate from the Organization iv Certificate from the Guide v Acknowledgement vi List of Tables vii List of Graphs viii List of Abbreviation ix Executive Summary I iii x INTRODUCTION 1 – 11 1.1 Company profile 1.2 Objectives of the Study 12 1.3 Limitations of the study 12 II RESEARCH METHODOLOGY 2.1 Primary data 13 2.2 Secondary data 13 2.3 Sample design 13 2.4 Sample Size 13 2.5 Method of Data Collection 14 III THEORETICAL BACKGROUND 3.1 Data analysis Techniques IV DATA PROCESSING AND ANALYSIS 25 – 45 V MANAGEMENT LESSONS 46 - 49 VI FINDINGS 50 VII RECOMMENDATIONS 51 VIII CONCLUSION 52 Bibliography Annexure/Appendices 15 – 24 24 DECLARATION I, Mr....

Words: 11785 - Pages: 48

Premium Essay

Iron and Steel Industry

.......47 5.1Understanding the Steel industry using Michael Porter’s Five Forces Model...47 5.2The SWOT Analysis.........................................................................................51 5.3Strategic Restructuring — A Comparative Analysis.........................................57 5.3.1Impediments to...

Words: 15829 - Pages: 64

Premium Essay

Steel Industry Report

...Introduction to the industry Metals have accompanied mankind since ancient ages, and steel, if we begin to follow it from the moment of its historically famed damascene form - for some millennia.  From the era of craftsman-like small-scale production to today's form of industrial mass production, steel has covered an intricate path lined with significant innovations in production processes, development of range and quality of products, and perpetually growing productivity of labour, improving economies and ecological load. In addition, a radical change in relationship to the customers is occuring at the end of this century, namely by a pronounced shift of readiness towards the needs and requirements of these customers.  Steel's indisputable significance is confirmed by the fact that it has become the second most mass-produced commodity after cement production, attaining the world-wide production volume of approx. 750 mil tons yearly. The art of iron production from ore arose in connection with the practices of copper and lead technologies in Anatolya, in northern Syria and possibly also in part of Iran. Iron ores were added as fluxes for treatment of sulphide copper ores. Iron drops, which the local manufacturers identified already 3000 years BC, comparing these with meteoritic iron, already hinted at the existence of the possibility of producing iron, but this only occurred practically 15 centuries later. Since that time, it is necessary to reckon that only small amounts of......

Words: 18924 - Pages: 76

Premium Essay

Steel Industry

...STEEL INDUSTRY ANALYSIS 1. Industry trends: Indian and Global perspectives, recent happenings. Steel is the back bone of human civilization, it is very crucial in development of a modern economy. The per capita consumption of steel shows the living standard of people in any country. Global Perspective: The industry directly employs about more than two million people worldwide, with a further two million contractors and four million people in the supporting industries. Considering steel’s position as the key product supplier to industries such as automotive, construction, transport, power and machine goods, and using a multiplier of 25:1, the steel industry is at the source of employment for more than 50 million people. World crude steel production has increased from 851 mega tonnes (Mt) in 2001 to 1,527 Mt in 2011. (It was 28.3 Mt in 1900).World average steel use per capita has steadily increased from 150 kg in 2001 to 215 kg in 2011. India, Brazil, South Korea and Turkey have all entered the top 10 steel producers list in the last 40 years. World Steel in Figures 2012 The World Steel Association (world steel) has published the 2012 edition of World Steel in Figures. World Steel in Figures provides essential facts and statistics about the global steel industry. The book contains comprehensive information on crude steel production, apparent steel use, pig iron production, steel trade, iron ore production and trade, and scrap trade....

Words: 4861 - Pages: 20

Premium Essay

Jindal Steel - Report

...Core Values l Crystal clear l Passion for excellence l Drive with leadership l Young thinking l Challenging status quo Contents Vice Chairman’s Statement.....................................02 Highlights 2009-10.....................................................04 Board of Directors........................................................05 Notice...............................................................................06 Directors’ Report..........................................................11 Management Discussion and Analysis......................22 Report on Corporate Governance...............................38 Auditors’ Report.................................................................48 Standalone Accounts.......................................................50 Consolidated Accounts...................................................79 Shri O. P. Jindal August 7, 1930 – March 31, 2005 O. P. Jindal Group – Founder and Visionary Only a life lived for others is a life lived worth while An industrialist par excellence under whose aegis the O P Jindal Group grew from strength to strength. But for the world at large Late Shri O P Jindal was much more than that. He was also a leader of masses, some one who would often champion the cause of the poor and downtrodden. He was not just a celebrated politician, but also a great humanitarian and an avant-grade visionary....

Words: 76501 - Pages: 307

Premium Essay

My Farewell Snaps

...[pic] ASSIGNMENT OF ECONOMICS FOR MANAGERS SUBMITTED TO:- LECT.POOJA KANSRA COURSE NO.ECO-519 SUBMITTED BY:- RAHUL MITTAL CLASS: M.B.A (TWINNING) BATCH:-2010 ROLL NO:-RQ1010A26 Pantaloons India Pantaloons India is one of the leading retailer stores of India, which operates numerous formats of retail both in the lifestyle and value segment of the consumer market in India. The company has its headquarters in Mumbai and operates more than 12 million sq. feet retail space, with more than 1000 stores transversely in 71 Indian cities as well as employs more than 30, 000 people. Pantaloon India is the subsidiary company of the Future Group, which is considered as a business venture providing the needs and requirements of the Indian market niche. Achievements by Pantaloons India Pantaloons India Retail Ltd. was the foremost business venture to introduce its departmental store concept for whole family, which was established in 1997. Pantaloons India was the only company to launch Big Bazaar, which is considered as a hyper market chain in India. Big Bazaar is a subsidiary...

Words: 3244 - Pages: 13

Premium Essay

Pipe Wiring

...Ashish Sharma (CEO) 9 TYPE OF INDUSTRY Manufacturing 10 SECTOR Proprietorship 11 LINE OF ACTIVITIES 13 TOTAL CAPACITY Manufacturing/Fabricating of Steel Wires & Wire products Bright Annealed Wires Common Round Wires Nails Deformed Bars 2100 MT/Annum 14 PROJECT COST Rs. 170.73 Lacs 15 TERM LOAN Rs. 105.00 Lacs 16 PROMOTERS’ CONTRIBUTION Rs. 65.73 Lacs 17 WORKING CAPITAL (CC) Rs. 80.00 Lacs 18 IMPORTANT INDICATORS I IRR Ii DSCR Iii BEP 22.33% 1.61 32.38% 12 PRODUCTS FINANCIAL 23 EXISTING BANKING ARRANGEMENT 24 PROPOSED REQUIRED CREDIT FACILITIES As it is a New Concern So the Unit is not availing any credit facilities Sl. Type of Requirement of Loan No. Loan Loan Amount (Rs. in Lacs) 1 Fund Based Term Loan 105.00 2 Fund Based Cash Credit 80.00 3 Non-Fund 0.00 Based TOTAL EXPOSURES 185.00 2 COMPANY PROFILE Jagannath Enterprise is primarily a SSI manufacturing unit for various grades of Steel, Wires and Wire Products. Though the Firm is newly formed but undoubtedly it has got all ingredients for dominating the market with its product and services in the domestic as well as overseas arena. The Firm will earn for itself fame and respect in the wire making business by working with dedication and will certainly grow with consistency....

Words: 4275 - Pages: 18

Premium Essay

Organizational Behavior

...ROLE OF LEADERSHIP IN ORGANIZATIONAL BEHAVIOR – SAIL INDUSTRY BACKGROUND: “Steel touches every aspect of our lives. No other material has the same unique combination of strength, formability and versatility.”- Source Anon Steel, as a material was used for centuries, whereas, steel production was considered an expensive affair since steel was produced in smaller quantities mainly targeted at the Military usage such as swords and shield. From the commercialization in 1856 of a cheap steel manufacturing process by Henry Bessemer to the improvements through Industrial Revolution and the very high demand during the Cold War periods to the Modern economic scenario where new power houses in the form of China and India have pushed the Steel industry, it is observed that there has been one constant in the journey of the Steel Industry: the increasing demand for steel. The demand for Steel has always been comfortably placed on a growing curve and so has the improvements in Steel production. World crude steel production has increased from 851megatonnes (Mt) in 2001 to 1,527 Mt in 2011 from 28.3 Mt in 1900). The industry directly employs 2 million people worldwide, with a further 2 million contractors and 4 million in supporting industries. Considering steel’s position as the key product supplier to industries such as automotive, construction, transport, power and machine goods it is safe to assume that steel helps in employment of more than 50 million people....

Words: 4707 - Pages: 19

Premium Essay

Communication Strategy

...Tata Steel, JSW, Essar and Jindal Steel and Power are more than doubling their capacity. They are bringing in new technology which makes their product of the best quality. Backward integration in raw material by most of the new plants has has snatched the low cost advantage of SAIL. * Buyer: Customer has become choosy and quality conscious not only in the product but its timely delivery as well. Need to expand to all corners of country with dedicated network. * Substitute: Low quality and low cost steel by china and erstwhile CIS countries have acted as a substitute because of its low price. Aluminium and plastic corrugated sheets acted as a viable substitute to steel. Generic Competitive Strategies Competitive Positioning: SAIL has been market leader in semi finished steel business like Blooms, Billets, slabs, CR and HR coils etc. In the last few years it has focused on value addition and gone ahead with “made to order” products. The share of value added products in the last FY was 36%. It should aim to further increase value added products like sheets, corrugated sheets, High strength sheets, Long rails, various channels and structurals. Tin plates, Wheels, Axles Rails and Wire Rods. BCG Analysis Stars: Customer | RURAL MKT targeted | specific CR and HR | CORRUGATED SHEETS. | COIL, | WIRE RODS | Cows: RAIL | Dog: PIG IRON, Wire Rods | WAGONS, RAIL, | | WHEEL, HR COIL, | |...

Words: 2387 - Pages: 10

Premium Essay

Finance Structure

...Submitted to Prof. Kousik Guhathakurta By Bharat Subramony PGP/16/012 Ranjan Kumar Sharma PGP/16/040 Utkarsh Rastogi PGP/16/056 A-1. There appears to be a significant trend in the Capital Structure of Indian Inc. as reported by the Reserve Bank of India, which can be seen from the table below. By aggregating the data from the RBI reports provided from 2001 to 2010, we can extrapolate and determine its asymptotic value of the Debt-Equity ratio, which signifies the Capital structure to an approximate value of 40. Industry | 2001-02 | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 | 2008-09 | 2009-10 | Target | Debt-Equity ratio in % | 67.3 | 61.1 | 55.5 | 51.3 | 46.8 | 47.3 | 45.6 | 44.3 | 43.6 | 40 | Although there is some inconsistency in the values reported by RBI for the same accounting period, in different reports, with some generalization, of the values, the approximate Debt-Equity ratio can be inferred by careful observation of the reports. Based on such moderations, the above table has been generated. The following graph helps us to realize the short-term target ratio of D-E for Indian Inc. as 40%, while it turns out to be close to 30%, assuming a long-term period of 25-30 years. If we chart the trend of the Debt-Equity ratio based on the size of the firms, we get the following table Scale | 2002-03 | 2003-04 | 2004-05 | 2005-06 | 2006-07 | 2007-08 | 2008-09 | 2009-10 | < 25 cr | 126 | 128.5 | 113.2 | 73.4 | 45.1 |......

Words: 2640 - Pages: 11

Free Essay

Attrition Analysis

...|Analysis |13 | |11....

Words: 3838 - Pages: 16

Premium Essay

Acquisition of Tata and Corus

...A PROJECT TO STUDY Acquisition OF TATA AND CORUS 0BY Jigar Gandhi Roll No- 11 PGDM - 4TH semester INTRODUCTION –( MERGERS AND ACQUISITION ) In this changed business paradigm only those organization rule who visualize the possibilities before they appear as plausible. Present Business environment, characterized by the globalization and liberalization, accommodates organization that are coming up with innovative strategies to survive and flourish. Companies in the global economies climate are thriving to each the pinnacle of the successes seeking competitive edge of over their rivals. While the waves liberalization and deregulation have been shaking the corporate shore around the global the domestic organizations are falling prey to the fierce competition and unprecedented challenges carried by this emerging business scenario. The recessionary trend consequents to the wall Street tsunami has made for the organization a maze with no exit . Drowning in the luxury of producing goods only to keep life simple is suicidal, rather an un quenched thirst must always prevailing that makes the quest for the value sustainable. Existence of keen competition with number and volume also made the texture of the competitor stronger shock absorber both finally and strategically creating a wide exposure for the business enterprises to build armour for protecting themselves from the threats lying in and forthcoming from the environment. Thus, organizations are left with...

Words: 18033 - Pages: 73

Premium Essay

Reliance Communications

...Corporate Internship Report “Steel Service Center in Indian Steel Market & It’s Relevance to JSPL’s Future Expansion” Internship Report submitted as a partial requirement for the award of the two year Master of Business Administration Program Submitted by Vinay Aggarwal 08609086 MBA (2008-2010) Company Guide Faculty Guide Mr. Subimal K. Sarmah Ms. Dimple Grover Asst. General Manager (Marketing Dept.) Jaypee Business School Jindal Steel & Power Limited Jaypee Business School (A constituent of Jaypee Institute of Information Technology University) (A-10, Sector 62, Noida (UP) India-201307)...

Words: 14378 - Pages: 58

Premium Essay

Tev Study

...Part-A: - Executive Summary: 1. Project background & promoters 1.1 PROJECT AT GLANCE 6 MVA * 1 Sub merged Arc Furnace for Manufacture of Ferro Manganese, Silico Manganese SHARANYA NATURAL RESOURCES & INFRA PROJECTS PRIVATE LIMITED H NO 1-2-110 Shanthi Nagar, Adilabad Andhra Pradesh 1. Sri Sanjay Kumar Makhariya 2. Sri P Shankar 3. Smt P Uma Adilabad, Andhra Pradesh Ferro Alloys - Silico Manganese (SiMn.) / Ferro Manganese (FeMn.) Used in Steel Industry 6*1 MVA Furnace Sub merged Arc Furnace for Ferro Manganese, Silico Manganese (4800 TPA SiMn and 7000 TPA FeMn based on equal utilization for both the products) Rs. 1792.33 Lakhs (Say 1792 lakhs) 60% 85% 90% Rs.868.00 lakhs Existing Proposed Term Loan – NIL Rs. 925.00 Lacs CC Limit – NIL Rs. 403.00 Lacs LC/FLC -NIL Rs. 50.00 Lacs One (1) Year Moratorium from Commercial production + 6 Years – Total Seven (7) years from Commercial production Name of the Company Registered Office Names of the Board of Directors Plant location Product Application Installed capacity Project Cost Capacity utilization of Year 2013-14 Year 2014-15 Year 2015-16 & onwards Promoter’s Contribution Banking limit - Term loan - Cash credit - LC/FLC Repayment Period Debt-Equity Ratio Project total (overall) TERM Loan (only) 1.53 : 1 1.07 : 1 3.49 times 5.05 times 40.51% Average DSCR - Gross - Net IRR SHARANYA NATURAL RESOURCES & INFRA PROJECTS PRIVATE LIMITED H NO 1-2-110 Shanthi Nagar, Adilabad Andhra Pradesh Page 1 of 76 1.2.......

Words: 26448 - Pages: 106