Financial statement of Steel Ind..
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Financial statement of Steel Ind.. Financial statement of Steel Ind.. Presentation Transcript

  • By: Kunal Sabharwal - 03 Saroja R -12 Sandeep Pawar -10
  •  
  • JINDAL STEEL Financial Ratios Formula Mar'09 Mar'08 Mar'07 Dividend Per Share Dividend Paid / No. of Equity Shares 5.5 4 18 Net Operating Profit Per Share (Rs) Net Operating Profit / No. of Equity Shares 496.46 348.67 1,144.14 Profitability Ratios         Operating Profit Margin(%) Operating Profit / Sales * 100 34.35 42.76 40.01 Profit Before Interest And Tax Margin(%) PBIT / Sales * 100 27.98 33.99 30.15 Gross Profit Margin(%) GP / Sales * 100 28.71 34.35 30.46 Net Profit Margin(%) NP / Sales * 100 19.5 22.79 19.75 Return On Capital Employed(%) EBIT / Avg Total Cap. Employed * 100 23.16 24.95 18.47 Return On Net Worth(%) EAT / Networth * 100 28.38 32.95 28.19 Return on Assets EAT / Avg Total Assets * 100 10.6 12.71 9.25 Liquidity And Solvency Ratios         Current Ratio CA / CL 1.04 1.25 0.68 Quick Ratio QA / QL 0.95 1.1 0.73 Debt Equity Ratio Total debt / Equity 0.92 1.03 1.4 Long Term  Debt Equity Ratio Long term debt / Equity 0.77 0.9 1.06 Debt Coverage Ratios         Interest Coverage Ratio EBIT / Interest 10.33 8.45 6.97 Management Efficiency Ratios         Inventory Turnover Ratio COGS / Avg Inventory 9.08 7.01 6.99 Debtors Turnover Ratio Credit Sales / Avg Debtors 22.62 17.67 11.37 Dividend Payout Ratio Net Profit Total Dividend Paid / No. of Equity Shares * 100 5.55 5.86 9.14 Earnings Per Share Net profit available for Equity share holders / No. of Equity shares 99.35 80.34 228.3
  • JINDAL STEEL
    • Directors have recommended a final dividend of 550% i.e. Rs. 5.50 per equity which is
    • 150% more as per compared to last year (2007-08)
    • The GP/ NP ratio is less as on Mar 2009 as compared to last 2 year, it may be due to
    • Increase in operating expenses or decrease in sales due to recession in the year 2008-09
    • Current ratio in the past 2 years indicates that the company is able to meet its working
    • capital requirement & its Current obligations as compared to year 2006-07 as in 2006-07
    • The current asset ratio was 0.68
    • Quick ratio which is also know as Acid test ratio here indicates that company is able to convert its current assets quickly into assets in order to cover its quick liabilities.
    • The strength of the company is better credit management, less loans as compared
    • to previous year and lower interest burden. It indicates good financial management
    • Return on capital Employed is improving year after year which indicates that company is able to generate sufficient cash as compared to capital it has invested in business.
    • Return on Assets indicates the capital intensity of the company, it shows how profitable a
    • company’s assets are in generating revenue.
    Ratio Analysis
    • Earning Per share indicates that how much profit was generated on a per share basis ,
    • EPS as on 2008-09 has increased by 23% as compared to last year.
    • Cash from operating activities: Cash generated from operations less cash deployed in net
    • Operating assets.
    • Cash from financing activities: Sum of net cash from debt financing & non- strategic
    • Investments.
    Ratio Analysis cont…
  •  
  • BHUSHAN STEEL Key Financial Ratios Formula ------------------- in Rs. Cr. -------------------     Mar '09 Mar '08 Mar '07 Investment Valuation Ratios         Dividend Per Share Dividend Paid / No. of Equity Shares 2.5 2.5 2.5 Net Operating Profit Per Share (Rs) Net Operating Profit / No. of Equity Shares 1,173.89 984.24 901.68 Profitability Ratios         Operating Profit Margin(%) Operating Profit / Sales * 100 21.93 19.98 16.4 Profit Before Interest And Tax Margin(%) PBIT / Sales * 100 17.16 14.86 10.89 Gross Profit Margin(%) GP / Sales * 100 17.22 14.92 15.12 Net Profit Margin(%) NP / Sales * 100 8.42 10.09 8.14 Return On Capital Employed(%) EBIT / Avg Total Cap. Employed * 100 8.34 8.72 9.81 Return On Net Worth(%) EAT / Networth * 100 20.77 26.07 25.79 Return on Assets EAT / Avg Total Assets * 100 3.47 4.81 5.8 Liquidity And Solvency Ratios         Current Ratio CA / CL 1.06 0.76 0.81 Quick Ratio QA / QL 0.92 0.88 1.07 Debt Equity Ratio Total debt / Equity 3.98 3.52 2.67 Long Term Debt Equity Ratio Long term debt / Equity 3.75 2.84 2.15 Debt Coverage Ratios         Interest Cover EBIT / Interest 15.02 10.95 6.81 Management Efficiency Ratios         Inventory Turnover Ratio COGS / Avg Inventory 4.75 4.4 5.09 Debtors Turnover Ratio Credit Sales / Avg Debtors 8.06 7.23 8.12 Dividend Payout Ratio Net Profit Total Dividend Paid / No. of Equity Shares * 100 2.94 2.93 3.96 Earnings Per Share Net profit available for Equity share holders / No. of Equity shares 99.2 99.77 73.76
  • Ratio Analysis
    • The GP/ NP ratio is more as on Mar 2009 as compared to last 2 year, it may be due to
    • decrease in operating expenses or increase in sales in the year 2008-09
    • Current asset ratio in the Mar 2009 - 1.06 indicates that the company is able to meet its working
    • capital requirement . That means current liabilities are less than current assets as company has made so many provisions and less amt of current liabilities which is good for the financial health of the company.
    • Quick ratio which is also know as Acid test ratio here indicates that company is able to convert
    • Its current assets quickly into assets in order to cover its quick liabilities. In year 2009,Quick ratio,
    • 0.92 which is better as compared to 0.88 in year 2008-07.
    • Return on capital Employed is decreased in march 2009 & 2008 as compared to 2007-08 which indicates that company is not able to generate sufficient cash as compared to capital it has invested in business. It means each one rupee of capital employed in the business has earned 0.08 paise.
    • Return on Assets indicates the capital intensity of the company, it shows how profitable a
    • Company’s assets are in generating revenue. It is decreasing from last two year.
    • Earning Per share indicates that how much profit was generated on a per share basis ,
    • EPS as on 2008-09 has increased by 34% as compared to 2007-2006.
  • BHUSHAN STEEL Cash flow `--------------Rs in Cr.------------------   Mar ' 09 Mar ' 08 Mar ' 07 Profit before tax 560.79 538.93 372.37 Net cash flow-operating activity 536.77 438.57 353.09 Net cash used in investing activity -1,806.13 -2,434.03 -1,298.33 Netcash used in fin. activity 1,366.10 1,922.95 963.86 Net inc/dec in cash and equivlnt 96.74 -72.51 18.62 Cash and equivalnt begin of year 27.63 100.14 81.52 Cash and equivalnt end of year 124.37 27.63 100.14
  •  
  • MUKAND STEEL Financial Ratios Formula Mar'09 Mar'08 Mar'07 Dividend Per Share Dividend Paid / No. of Equity Shares -- 1 1 Net Operating Profit Per Share (Rs) Net Operating Profit / No. of Equity Shares 264.7 263 247.82 Profitability Ratios         Operating Profit Margin(%) Operating Profit / Sales * 100 0.18 13.14 14.61 Profit Before Interest And Tax Margin(%) PBIT / Sales * 100 -2.68 9.86 11.25 Gross Profit Margin(%) GP / Sales * 100 -2.8 10.13 9.49 Net Profit Margin(%) NP / Sales * 100 -9.27 3 5.03 Return On Capital Employed(%) EBIT / Avg Total Cap. Employed * 100 1.67 12.72 14.85 Return On Net Worth(%) EAT / Networth * 100 -41.79 9.33 15.42 Return on Assets EAT / Avg Total Assets * 100 -4.67 2.1 4.03 Liquidity And Solvency Ratios         Current Ratio CA / CL 0.98 1.24 2 Quick Ratio QA / QL 1.36 1.46 1.89 Debt Equity Ratio Total debt / Equity 3.08 2.03 1.77 Long Term  Debt Equity Ratio Long term debt / Equity 1.95 1.37 1.55 Debt Coverage Ratios         Interest Coverage Ratio EBIT / Interest 0.16 1.59 1.93 Management Efficiency Ratios         Inventory Turnover Ratio COGS / Avg Inventory 3.68 3.39 3.73 Debtors Turnover Ratio Credit Sales / Avg Debtors 3.18 3.45 3.5 Dividend Payout Ratio Net Profit Total Dividend Paid / No. of Equity Shares * 100 -- 14.4 9.17 Earnings Per Share Net profit available for Equity share holders / No. of Equity shares -25.62 8.12 12.76
  • MUKAND STEEL Cash Flow of Mukand ------------------- in Rs. Cr. -------------------   Mar '09 Mar '08 Mar '07       Net Profit Before Tax -204.28 80.87 113.04 Net Cash  From Operating Activities 89.51 123.62 162.10 Net Cash (used in)/from -68.51 -223.68 -19.50 Investing Activities Net Cash (used in)/from Financing Activities -44.27 98.83 -183.91 Net (decrease)/increase In  Cash and Cash Equivalents -23.27 -1.23 -41.30 Opening Cash & Cash Equivalents 55.29 56.52 97.82 Closing Cash & Cash Equivalents 32.01 55.29 56.52
    • Directors does not recommended a final dividend per equity in year 2009 ,where as it was 1
    • last year 2007 & 08
    • The GP/ NP ratio is less as on Mar 2009 as compared to last 2 year, it may be due to
    • Increase in operating expenses or decrease in sales due to recession in the year 2008-09
    • Current ratio in 2009 indicates that the company is not able to meet its working
    • capital requirement & its Current obligations as compared to year 2006-07 as in 2006-07
    • The current asset ratio was 2 & 1.24 respectively.
    • Quick ratio which is also know as Acid test ratio here indicates that company is not
    • comfortable when it comes to convert Its current assets quickly into assets in order to cover its quick liabilities.
    • Return on capital Employed is deteriorating year after year which indicates that company is
    • not able to generate sufficient cash as compared to capital it has invested in business.
    • Return on Assets indicates the capital intensity of the company, Here it shows company is
    • not able to generating revenue.
    Ratio Analysis
    • Debtors Turnover Ratio is decreasing year by year, its an good sign for the
    • company's prosper point of view.
    • Earning Per share indicates that how much profit was generated on a per share basis ,EPS
    • as on 2008-09 has decrease tremendously by 300 % as compared to last year.
    • Net profit has been decreased in 2009 as compare to the previous two year this may be
    • due to volatile market as well as recession around the world.
    • Opening Cash & Cash Equivalents has been more or less same as compare to previous year.
    • Company has invested same amount of cash as in 2007 due to market conditions.
    • Closing Cash & Cash Equivalents has been decrease as compare to the previous two years
    • this is not an good sign for an developing company.
    Ratio Analysis cont…
  •