Tata Steel Ltd. - 2009 Analysis and Information

Tata Steel Ltd.

Learner Assignment - Data, Information, News, Analysis and Valuation

Data and News Relevant for analysis and valuation of the company will be given in this knol as a part of learning effort by students of investment analysis, security analysis and equity research courses. The information is meant for demonstrating the application of textbook principles by learners only. It is not for commercial decision making by investors. Investors are advised to contact and consult registered investment advisors only.

Authors

• Narayana Rao
• Anonymous

Published

Creative Commons Attribution 3.0 License

Version 10

Last edited: 07 Apr 2009

Exported: 26 Nov 2011

Original URL: http://knol.google.com/k/-/-/2utb2lsm2k7a/642

Assignment of Megha Gupta

PGDIE-38, NITIE

2008-2010

Quarterly results

(Rs crore)

 

	Dec ' 08	Sep ' 08	Jun ' 08	Mar ' 08	Dec ' 07
Sales	4,802.14	6,850.67	6,165.03	5,736.69	4,973.92
Operating profit	1,477.95	3,182.97	3,024.58	2,402.32	2,096.61
Interest	348.20	254.82	241.73	233.89	362.67
Gross profit	1,138.24	3,166.52	2,795.07	2,195.96	1,800.97
EPS (Rs)	6.38	24.46	20.37	16.50	17.54

 

 

Other income	8.49	238.37	12.22	27.53	67.03
Stock adjustment	-636.02	-384.39	-201.80	115.68	-61.43
Raw material	1,611.17	1,381.76	1,023.10	955.33	930.85
Power and fuel	263.54	278.07	261.92	693.27	239.51
Employee expenses	568.86	598.53	471.87	476.61	364.64
Other expenses	1,516.64	1,793.73	1,585.36	1,093.48	1,403.74
Depreciation	251.31	248.82	216.80	209.15	209.21
Taxation	293.89	784.47	786.45	637.08	506.07
Net profit / loss	466.24	1,787.81	1,488.40	1,205.51	1,068.58
Extra ordinary item	-126.80	-345.42	-303.42	-144.22	-17.11
Equity capital	730.78	730.78	730.78	730.78	609.17
Agg.of non-prom. shares (Lacs)	4824.87	4825.87	4825.87	4825.87	4035.03
Agg.of non promotoholding (%)	66.04	66.06	66.06	66.06	66.26
OPM (%)	30.78	46.46	49.06	41.88	42.15
GPM (%)	23.66	44.67	45.25	38.10	35.73
NPM (%)	9.69	25.22	24.09	20.91	21.20

 Source:http://money.rediff.com/companies/tata-steel-ltd/15510001/results-quarter

 

Half yearly results

(Rs crore)

 

	Sep ' 08	Mar ' 08	Sep ' 07	Mar ' 07	Sep ' 06
Sales	13,016.56	10,710.61	8,982.67	10,647.84	9,114.73
Operating profit	6,208.41	4,498.93	3,724.61	3,687.15	3,286.12
Interest	496.55	596.56	282.14	96.84	77.06
Gross profit	5,961.59	3,996.93	3,682.91	3,768.82	3,464.22
EPS (Rs)	44.83	31.12	39.61	37.32	35.39

 

 

Other income	249.73	94.56	240.44	178.51	255.16
Stock adjustment	-586.19	54.25	-92.98	-13.61	-68.86
Raw material	2,404.86	1,886.18	1,543.34	1,692.20	1,429.26
Power and fuel	539.99	932.78	-	226.07	454.09
Employee expenses	1,070.40	841.25	753.52	790.73	666.11
Other expenses	3,379.09	2,497.22	3,054.18	3,067.88	2,334.88
Depreciation	465.62	418.36	416.25	428.42	390.87
Taxation	1,570.92	1,143.15	1,236.18	1,083.75	955.75
Net profit / loss	3,276.21	2,274.09	2,412.94	2,167.25	2,054.90
Extra ordinary item	-648.84	-161.33	382.46	-89.40	-62.70
Equity capital	730.78	730.78	609.17	580.67	580.67
Agg.of non-prom. shares (Lacs)	4825.87	4825.87	4033.17	4033.17	4048.17
Agg.of non promotoholding (%)	66.06	66.06	66.23	69.48	69.74
OPM (%)	47.70	42.00	41.46	34.63	36.05
GPM (%)	44.94	36.99	39.93	34.81	36.97
NPM (%)	24.70	21.05	26.16	20.02	21.93

Source:http://money.rediff.com/companies/tata-steel-ltd/15510001/results-half

 

 

Annual results

(Rs crore)

 

	Mar ' 08	Mar ' 07	Mar ' 06	Mar ' 05	Mar ' 04
Sales	19,693.28	19,762.57	17,144.22	15,876.87	11,920.96
Operating profit	8,223.54	6,973.27	5,931.51	6,045.36	3,495.41
Interest	878.70	173.90	118.44	186.80	122.17
Gross profit	7,679.84	7,233.04	6,067.83	6,006.59	3,513.75
EPS (Rs)	64.14	72.71	63.33	62.75	47.30

 

 

Other income	335.00	433.67	254.76	148.03	140.51
Stock adjustment	-38.73	-82.47	-104.91	-289.55	-64.46
Raw material	3,429.52	3,121.46	2,368.30	1,715.14	1,462.44
Power and fuel	-	-	819.17	712.00	667.53
Employee expenses	1,594.77	1,456.83	1,353.01	1,289.00	1,351.01
Excise	-	2,210.55	2,004.83	1,377.92	1,218.57
Other expenses	6,484.18	6,082.93	4,772.31	5,027.00	3,790.46
Depreciation	834.61	819.29	775.10	618.78	625.11
Taxation	2,379.33	2,039.50	1,733.58	1,823.12	919.74
Net profit / loss	4,687.03	4,222.15	3,506.38	3,474.16	1,746.22
Extra ordinary item	221.13	-152.10	-52.77	-90.53	-222.68
Equity capital	730.78	580.67	553.67	553.67	369.18
Agg.of non-prom. shares (Lacs)	4825.87	4033.17	4051.91	4064.63	2719.67
Agg.of non promotoHolding (%)	66.06	69.48	73.21	73.44	73.71
OPM (%)	41.76	35.29	34.60	38.08	29.32
GPM (%)	38.34	35.81	34.87	37.48	29.13
NPM (%)	23.40	20.91	20.15	21.68	14.48

Source: http://money.rediff.com/companies/tata-steel-ltd/15510001/results-annual

About the company

• ·      Tata Steel is the world’s 6th largest steel company with an existing annual crude steel production capacity     of 30 Million Tonnes Per Annum (MTPA). (http://www.tatasteel.com/Company/profile.asp)
• ·      Established in 1907, it is the first integrated steel plant in Asia and is now the world`s second most geographically diversified steel producer and a Fortune 500 Company. (http://www.tatasteel.com/Company/profile.asp)
• ·      A Public Limited Company, Tata Steel is headquartered in Mumbai.
• ·      Tata Steel has a balanced global presence in over 50 developed European and fast growing Asian markets, with manufacturing units in 26 countries. (http://www.tatasteel.com/Company/profile.asp)
• ·      It was the vision of the founder; Jamsetji Nusserwanji Tata., that on 27th February, 1908, the first stake was driven into the soil of Sakchi.  (http://www.tatasteel.com/Company/profile.asp)
• ·      Through investments in Corus, Millennium Steel (renamed Tata Steel Thailand) and NatSteel Holdings, Singapore, Tata Steel has created a manufacturing and marketing network in Europe, South East Asia and the pacific-rim countries.
• (http://www.tatasteel.com/Company/profile.asp)
• ·      Tata Steel, through its joint venture with Tata BlueScope Steel Limited, has also entered the steel building and construction applications market. (http://www.tatasteel.com/Company/profile.asp)
• ·      Exploration of opportunities in titanium dioxide business in Tamil Nadu, ferro-chrome plant in South Africa and setting up of a deep-sea port in coastal Orissa are integral to the Growth and Globalisation objective of Tata Steel.(http://www.tatasteel.com/Company/profile.asp)
• ·      Tata Steel India is the first integrated steel company in the world, outside Japan, to be awarded the Deming Application Prize 2008 for excellence in Total Quality Management (http://www.tatasteel.com/Company/profile.asp)

Latest News

• ·   Tata Steel signed an MoU with Vietnam Steel Corporation (VSC) on May 29, 2008 to develop a steel complex in Ha Tinh. (http://www.tatasteel.com/company/vietnam.asp)
• ·   Tata Steel has signed an agreement with Steel Authority of India Limited to establish a 50:50 joint venture company for coal mining in India. Also, Tata Steel has bought 19.9% stake in New Millennium Capital Corporation, Canada for iron ore mining. (http://www.tatasteel.com/Company/profile.asp)
• ·   Tata Steel Limited and the members of the Al Bahja Group, a leading business house of Oman signed a Joint Venture Agreement on January 16, 2008. The project envisages mining of limestone in the Uyun region which lies in the Salalah province of Oman and has large deposits of limestone. (http://www.tatasteel.com/company/oman.asp)

Company’s Management

Mr R N Tata (Chairman)

Mr Nusli N Wadia (Company Director)

 Mr S M Palia (Company Director

Mr B Muthuraman (Managing Director)

Auditors
Messrs Deloitte Haskins & Sells

http://www.tatasteel.com/company/management.asp

DDM Model

 1. Required Rate Of Return

NRFR for one year US treasury bill is 0.8 as on Jan 2009, forecasting for march 2009 is 1%

R_m= Market rate of return 10%

B for tata Steel= 1.2

K= NRFR + B( R_m-NRFR)

  = 1+ 1.2( 10-1)

  =11.8%

 

2.Growth Rate

 

Year	DPR	RR	NPM	Sales	equity	ROE	g
2003-04	23.83	0.7617	16	11,920.96	369.18	516.646	3.935292
2004-05	23.64	0.7636	23.72	15,876.87	553.67	680.1874	5.193911
2005-06	23.39	0.7661	22.78	17,144.22	553.67	705.3756	5.403883
2006-07	26.15	0.7385	23.53	19,762.57	580.67	800.8219	5.91407
2007-08	29.39	0.7061	23.43	19,693.28	730.78	631.3987	4.458306
Estimated		0.715	23.2	20,677.65	730	657.1527	4.698642

 

 

From above growth rate is 4.7

 

3. Dividend in 2008 (D₀) = 17.26

    V= 17.26(1+0.047)/ (0.118-0.047)

      = 254.52

 

Material to be posted.

Comments

visited

7.8.2009

Narayana Rao - 07 Aug 2009