Metal industry in india
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Metal industry in india Presentation Transcript

  • 1. Mining and Metals industry
  • 2. Introduction  Minerals and Metals sector have always been in the forefront of a nation's economy and India is no exception.  Both ferrous and non ferrous metals are equally important towards building up the country's future
  • 3. Global Distribution of Bauxite & Copper Reserves
  • 4. Domestic Bauxite and Copper Concentrate Production
  • 5. Domestic Zinc and Lead Concentrate Production
  • 6. SWOT Analysis of Indian Non Ferrous Metal Industry
  • 7. SWOT Analysis of Indian Ferrous Metal Industry
  • 8. HINDALCO
  • 9. INTRODUCTION  Metals flagship company of the Aditya irla group is the world's largest aluminium rolling company.  One of the biggest producers of primary aluminium in Asia  Established in 1958  Global footprint in 13 countries  Turnover of USD 14.8 billion (RS. 80,193 crore).
  • 10. MANAGEMENT BOARD OF DIRECTORS • Mr. Kumar Mangalam Birla, Chairman • Mrs.Rajashree Birla • Mr. C. M. Maniar • Mr. M. M. Bhagat • Mr. K. N. Bhandari • Mr. A. K. Agarwala • Mr. N. J. Jhaveri • Mr. Ram Charan • Mr. JagdishKhattar • Mr. M. Damodaran • Mr. D. Bhattacharya, Managing Director • Mr. SatishPai, Whole time Director
  • 11. GROUP COMPANIES  Novelis Inc  Aditya Birla Minerals Ltd  Hindalco-Almex Aerospace Ltd
  • 12. BUSINESS ALUMINIUM • Aluminas grade and hydrates • Aluminium ingots • Billets • Wire rods • Flat rolled products • Extrusions and • Foil COPPER • copper cathodes • continuous cast copper rods • precious metals • sulphuric acid, • phosphoric acid, • di-ammonium phospate (DAP) • phosphoric fertilisers, and • phospho gypsum.
  • 13. PROJECTS Greenfield  Madhya Pradesh: Mahan Aluminium Project  Orissa: Aditya Alumina and Aluminium Project  Orissa: Utkal Alumina Project  Jharkhand: Jharkhand Aluminium Project Brownfield  Primary metal: Hirakud  Alumina capacity: Belgaum  Alumina capacity: Muri
  • 14. MANAGEMENT
  • 15. SHAREHOLDER PATTERN Promoters 32% Mutual funds and UTI 3% Banks and Financial Institutions 12% FII 27% Corporates 7% Individual shares in transit 9% NRI 2% GDRs 8% Total shares : 1915129317
  • 16. SWOT ANALYSIS • Global brand image. • Cost effective producer. • Sound financial position • Company has a well-established distribution network, covering a geographically wide and scattered market. • A number of Brownfield & Greenfield projects. • Industrial peace as, there has been no major strike in last 22 year. • A well focused human resources development. STRENGTH • Present production capacity is not adequate to meet the rising high demand. • Technology is not upgraded to mark as compare to global giants in aluminium industry. WEAKNESS
  • 17. • R & D collabratation with universities and another research organization. • More emphasis on downstream production of value added products. • Recycling should be adopted as routine production. • Raising more finance from marketing for more acquisition and merger for consolidating position in the global market. OPPORTUNITIES • Strong domestic and global competitors, such as TATA, POSCO, MITTLE, ESSAR . • Innovative revolution in plastic and steel industry. • Reduce in Exide duty. • Fall in price of Al. In neighbor country. THREAT
  • 18. FINANCIALS
  • 19. Revenue Parameters
  • 20. DIVIDEND For the year ended 31st march 2013 the board of director of the company have recommended dividend of Rs. 1.40 per share ( previous year Rs. 1.55 per share) to equity holders aggregating to Rs. 313. 60 cr. ( previous year Rs. 346.86 cr.) including dividend distribution tax.
  • 21. Foreign exchange earnings and outgo A. Activities related to export  export during the year where Rs. 7571.55 cr. B. Total foreign exchange used and earned  foreign exchange used Rs.18555.55 cr.  foreign exchange earned Rs. 7572.30 cr.
  • 22. BALANCE SHEET
  • 23. PROFIT AND LOSS
  • 24. REASON FOR SLOW DOWN  Production outages  Dahej copper extended shutdown  Increase in coal price and crude oil price  Global aluminium price remained depressed  Slow down in manufacturing sector and power sector  Depreciating rupee
  • 25. QUATERLY RESULT Parameter JUN'13 (₹Cr.) MAR'13 (₹ Cr.) Sales Turnover 58,379.30 69,937.50 Other Income 4,279.40 2,312.10 Total Income 62,658.70 72,249.60 Total Expenses 53,594.80 63,505.20 Operating profit 9,063.90 8,744.40 Gross Profit 7,576.70 7,167.70 Interest 1,487.20 1,576.70 PBDT 6,089.50 5,591.00 Depreciation 0.00 0.00 PBT 5,746.00 5,441.50 Tax 1,005.10 621.20 Net Profit 4,740.90 4,820.30 Earnings Per Share 2.48 2.52 Equity 1,914.80 1,914.80 Preference Capital 0.00 0.00 Reserves 0.00 0.00
  • 26. RATIO ANALYSIS 31st march 2013 31st march 2012 Face Value 1.00 1.00 Dividend Per Share 1.40 1.55 Current Ratio 1.26 1.01 Quick Ratio 0.91 0.55 Debt Equity Ratio 0.72 0.46 Dividend Payout Ratio Net Profit 17.63 14.98 Inventory Turnover Ratio 3.38 3.80 Debtors Turnover Ratio 17.71 19.72 Interest Cover 5.69 10.22 Return On Capital Employed(%) 4.27 6.15
  • 27. MAJOR COMPETITORS
  • 28. FUTURE PLANS
  • 29. SAIL
  • 30. INTRODUCTION  Steel Authority of India Limited (SAIL) is the leading steel-making company in India.  SAIL is also among the seven Maharatnas of the country's Central Public Sector Enterprises.  The company, incorporated on January 24, 1973 with an authorized capital of Rs. 2000 crore.  SAIL has more than 1 lakh employees  annual turnover of Rs 49,350 crore in 12-13.  Annually it produces over 13 million tonnes of various steel products  SAIL’s products have found ready acceptance in about 75 countries the world over
  • 31. MANAGEMENT  Mr. Chandra Shekar Verma current chairman Other Board members include  Shri S Machendranathan (Additional Secretary & Financial Adviser to the Government of India)  Prof. Deepak Nayyar  Shri AK Goswami,  Dr. Jagdish Khattar  Prof. Subrata Chaudhuri  Shri Shuman Mukherjee  Shri PC Jha  Shri PK Sengupta
  • 32. PRODUCTS  SEMIs  Structurals  Bars, rods and rebars  Hot rolled product  Plate, cold rolled product  Galvansed product  PET products  Railway products  Stainless steel  Special steel  Pig iron
  • 33. JOINT VENTURE  NTPC SAIL Power Company Pvt. Limited (NSPCL)  Bokaro Power Supply Company Pvt. Limited (BPSCL)  Mjunction Services Limited  SAIL-Bansal Service Centre Limited  Bhilai JP Cement Limited  Bokaro JP Cement Limited  SAIL & MOIL Ferro Alloys (Pvt.) Limited  S & T Mining Company Pvt. Limited  International Coal Ventures Private Limited  SAIL SCI Shipping Pvt. Limited  SAIL RITES Bengal Wagon Industry Pvt. Limited  SAIL SCL Limited
  • 34. NEW INITIATIVES INCLUDING JVs OF SAIL Merger & Acquisition (M&A)  Merger of Maharashtra Elecktosmelt Limited (MEL) with SAIL  Transfer of Salem Refractory Unit of Burn Standard Company Limited to SAIL Joint Ventures  Revival of Sindri unit of Fertiliser Corporation of India Ltd. (FCIL)’s  Joint Venture with M/s RITES  Joint Venture with Government of Kerala for revival of Steel Complex Limited Strategic Alliances:  Hajigak Iron Ore Deposits Owned by Government of Afghanistan  Kobe Steel  POSCO  Expansion of Captive Power Plants of SAIL
  • 35. SHAREHOLDING PATTERN 80% 11% 5% 3% 1%0% 0% 0% promoters financial institute foreign institute general public mutual funds other companies foreign NRIs others
  • 36. SWOT ANAYSIS • The diversified product mix and multi location production • Customer base is another major strength for SAIL as it offers steel at subsidised rates and hence caters to high volume of clients • Financial Resources ,it can use Govt funds for ventures. • it uses all possible channels for promotion and Sales. • Low overall borrowings STRENGTH • dependency on the market purchase for a key input • Another weakness is that higher profit margins arepossible but not allowed since being a Govt venture. • include private players with better quality manpower, strategies and policies. • skill depletion • largely in the technical areas. • At present around 20% of the products are in the form of semi-finished • steel, resulting in lower value addition WEAKNESS
  • 37. • SAIL also can adopt globalisation with ease using Govt. Support. • Also SAIL being financially sound can undertake merger and acquisition projects with weaker counterparts. • Rapidly expanding domestic market particularly infrastructure sector. • Focus on infrastructure projects OPPORTUNITIES • Threats would include change in Govt Policies and Economy trend which can have a direct impact on the functioning of SAIL. • Subdued domestic demand for steel could result in excess steel • capacity in the country • intensification of competition from domestic as well as foreign steel producers • Adverse movement in prices of imported coking coal. THREAT
  • 38. FINANCIALS
  • 39. Revenue Parameters PRODUCT WISE
  • 40. PLANT WISE
  • 41. Dividend policy Annual Dividends 12/2008 12/2009 12/2010 12/2011 12/2012 Dividend Amount 3.70 2.60 3.30 2.40 2.00 Year-end Yield % 233.05 50.41 80.85 156.38 120.88
  • 42. EXPORTS AND IMPORTS 31st march 2013 31st march 2012 Total export 1158.23 1230.10 Total import 14763.83 17725.89
  • 43. Balance sheet
  • 44. Profit and loss
  • 45. REASON FOR SLOW DOWN  Higher usage of external inputs (BF coke & pellets)  Higher salary and wages  Higher input price of items (limestones, ferro alloys)  Increase in value added production  Lower depreciation and  Foreign exchange variations
  • 46. Quarterly result Parameter JUN'13 (₹ Cr.) MAR'13 (₹ Cr.) Sales Turnover 1,02,679.00 1,23,304.00 Other Income 2,261.70 2,089.50 Total Income 1,04,941.00 1,25,394.00 Total Expenses 93,006.50 1,14,066.00 Operating profit 11,934.30 11,328.10 Gross Profit 9,137.30 9,347.10 Interest 1,918.20 2,145.90 PBDT 7,219.10 7,201.20 Depreciation 0.00 0.00 PBT 5,208.80 7,410.90 Tax 699.70 2,945.60 Net Profit 4,509.10 4,465.30 Earnings Per Share 1.09 1.08 Equity 41,305.30 41,305.30
  • 47. Ratio analysis 31st march 2013 31st march 2012 Face Value 10.00 10.00 Dividend Per Share 2.00 2.00 Return On Capital Employed(%) 6.67 10.91 Return On Net Worth(%) 5.29 8.89 Current Ratio 1.01 1.22 Quick Ratio 0.68 0.82 Debt Equity Ratio 0.52 0.40 Interest Cover 5.59 9.00 Inventory Turnover Ratio 2.79 3.71 Debtors Turnover Ratio 9.71 10.30 Investments Turnover Ratio 2.79 3.71 Dividend Payout Ratio Net Profit 44.29 27.10
  • 48. Major competitors
  • 49. FUTURE PLANS  SAIL, is in the process of modernizing and expanding its production units, raw material resources and other facilities to maintain its dominant position in the Indian steel market Item Actual Production Capacity Production Capacity after Expansion Hot Metal 14.6 Mtpa 26.2 Mtpa Crude Steel 13.5 Mtpa 24.6 Mtpa Saleable Steel 12.6 Mtpa 23.1 Mtpa The following table shows the increased production of various items prior to and post expansion.
  • 50. JSW STEELS
  • 51. INTRODUCTION  Owned by the JSW Group based in Mumbai, Maharashtra, India.  The company has been growing at a CAGR of 25.37% over the last five years.  JSW Steel has plants in 6 locations in India — Vijayanagar in Karnataka, Salem in Tamil Nadu, and Tarapur, Vasind, Kalmeshwar and Dolvi in Maharashtra.  The total workforce of Steel and Iron industry is currently estimated at about 404,575
  • 52. MANAGEMENT
  • 53. PRODUCTS Products  Hot Rolled Products  HR Plates  Cold Rolled Products  Galvanised Products  Pre-painted Products  Galvalume  TMT Bars  Special Steel and Wirerods Brands  JSW Vishwas  JSW TMT PLUS  JSW Colouron  JSW Colouron Plus  JSW Pragati
  • 54. SUBSIDIARIES, JVS AND ASSOCIATES  JSW Steel Coated Products  Jindal Praxair Oxygen Company Ltd  JSW Severfield Structures Ltd  Vijayanagar Minerals Pvt Ltd.  JSW MI Service Centre Pvt Ltd  Toshiba JSW  JSW Steel USA  Iron Ore mines in Chile  Coking Coal Mine in USA  Mozambique LDA  Geo Steel LLC
  • 55. SHAREHOLDING PATTERN promoters 27% public shareholding 47% FIIs 13% pledge shares 13% Total no. ofshares 241722044
  • 56. SWOT ANALYSIS • Produces economical and efficient steel and power through backward and forward integration. • Caters to varied needs in the steel market. • Continuously expanding its production capacities. • The company shows a good CAGR of 25.37% over the last five years STRENGTH • Power and fuel costs have increased a lot in India which increases cost for the company. • Depreciating rupee against dollar creates translational risk when the assets are valued in rupees to know consolidated performance. WEAKNESS
  • 57. •Increase production capacity to meet the global steel demand. •JSW diversifies investments in many areas to reduce business risk. •Weaker rupee gives a boost to steel exports to countries like USA where economy is recovering. (ET, Aug 13) •The availability of inexpensive, good-quality iron ore. •Automobile and power sectors offer opportunity for specialized steel. OPPORTUNITIES •Issues related to land acquisition, raw material linkages(Karnataka) and environmental clearances. •Ban on mining iron ore in Karnataka’s Bellary, Chitradurga and Tumkur districts. •Shortage of coking coal lead to increased imports. •Hike in the export duty on iron ore fines and lumps. •Insufficient infrastructure and logistics. THREATS
  • 58. FINANCIALS
  • 59. REVENUE CONTRIBUTION
  • 60. FOREIGN EXCHANGE EARNINGS AND OUTGO FY 2012-13 FY 2011-12 Foreign exchange earned 7167.30 5406.42 Foreign exchange used 13279.74 14376.58
  • 61. BALANCE SHEET
  • 62. PROFIT AND LOSS
  • 63. Reason for growth Focus on retail market Better product mix Focus on infrastructure and construction sector Signed more MOUs leading to increase in shares
  • 64. QUARTERLY RESULT Parameter JUN'13 (₹ Cr.) MAR'13 (₹ Cr.) Sales Turnover 93,581.50 92,908.60 Other Income 722.60 537.40 Total Income 94,304.10 93,446.00 Total Expenses 76,090.10 75,935.90 Operating profit 18,214.00 17,510.10 Gross Profit 3,266.80 14,383.80 Interest 6,418.00 4,425.00 PBDT -3,151.20 9,958.80 Depreciation 0.00 0.00 PBT -3,172.60 9,109.50 Tax -965.00 3,377.20 Net Profit -2,207.60 5,732.30 Earnings Per Share -9.47 25.33 Equity 2,417.20 2,231.20
  • 65. RATIO ANALYSIS Ratios 2013 2012 Current ratio 0.92:1 0.81:1 Quick ratio 061:1 0.51:1 DTO 22.56 times 29.19 times CTO 2.4 times 2.58 times TA turnover ratio 0.91: times 0.97 times Stock turnover ratio 4.48 times 4.22 times DER 0.96:1 0.79:1 ISCR 2.45 times 2.76:1 GP ratio 36.98% 38.77% NP ratio 5.07% 5.06% ROCE 10.83% 9.90% ROE 9.03% 8.79% Operating ratio 87.61% 84.44% Operating profit 12.65% 15.56%
  • 66. DIVIDEND Financial Year Dividend Declaration Date Dividend Rate (%) 2011-12 25.07.2012 75 2010-11 25.07.2011 122.5
  • 67. MAJOR COMPETITORS
  • 68. FUTURE PLANS  The Company aims to achieve 40 MTPA production capacities in the next decade, which will garner a 15-20% share of India’s steel basket.  The Salem plant aims to develop the Kanjamalai, Kavuthimalai and Vediappanmalai iron ore mines in Tamil Nadu on receipt of requisite approvals to improve raw material security.  The company also plans to build a steel plant in Jharkhand.  JSW Steel signed a development arrangement with Government of West Bengal, to build a 10 MTPA steel plant in phases at Salboni, West Midnapur District.
  • 69. OVERVIEW  HISTORY Maithan Alloys was established in 1997 with the objective of meeting the varied needs of Ferro-alloy users. The Maithan Alloy's product-quality is definitely superior and this fact is proven time and again by the overwhelming loyalty of the clients. The company has earned accolades for itself and enjoys an enormous trust from the clients. The company is based in Kolkata, India. Maithan Alloys specializes in ferro alloy and silicons. The company provides coal-based power projects.  BUSINESS Maithan Alloys is one of India’s largest manufacturers and exporters of customized Ferro-alloys (ferromanganese, Ferro-silicon and silicomanganese). The Company also generates & supply of wind turbines in Maharashtra and Rajasthan secured by power purchase agreements (PPAs) with respective State Electricity Boards.
  • 70. B K Agarwalla: Chairman & Wholetime Director SubodhAgarwalla: Whole Time Director Raj Kumar Agarwal: Director Vikash Kumar Jewrajka :Director P K Venkatramani :Additional Director S C Agarwalla :Managing Director & CEO Shrigopal Jhunjhunwala :Director Nand Kishore Agarwal :Director Biswajit Choudhuri :Director GOALS Raw material: Strengthen mining reserves to 10 mn tonnes by 2015 Power: Enhance power generation to 250 MW in five years End product: Increase downstream production capacity from 150,000 TPA to 500,000 TPA by 2015 MANAGEMENT
  • 71. MILESTONES 1997 - Commenced commercial production with 10 MVA 2000 - Added 7.5 MVA 2004 - Added 8.25 MVA 2007 - Added 24 MVA 2009 - Commenced Meghalaya operations with 15 MVA and Captive Power Generation 2010 – Acquisition of manganese ore mines (reserves of 2 million tons).  PRODUCT Ferro silicon Ferro manganese Silico Manganese  CUSTOMERS Domestic customers: Clients in Andhra Pradesh, West Bengal, Haryana, Maharashtra, Odisha, Jharkhand, Chhattisgarh and Karnataka International customers: Clients in Japan, Taiwan, Korea, the US and countries from the Middle East, the European Union and Africa
  • 72. PARTICULARS 2012-13 Market cap (Rs cr.) 95.34 Face value(Rs.) 10.00 Dividend yield (%) 3.23 Year of Incorporation 1985 52-week high/low (Rs) 126.90/50.00 Industry P/E 7.84 Book value 185.91 COMPANY DATA PARTICULARS 2012-13 (%) Promoters 74.36 FIIs - Banks & FIs - Public 25.64 PARICULARS 2012-13 2011-12 Amount (Rs. Lacs) % of total sales Amount (Rs. Lacs) % of total sales Domestic sales 60,057.79 70.27 42,602.51 68.24 Export sales 25,413.30 29.73 19,823.36 31.76 SHAREHOLDING PATTERN REVENUE PARAMETERS
  • 73. COMPETITION Name Last Price Market Cap. (Rs. cr.) Sales Turnover Net Profit Total Assets Coal India 278.10 175,658.09 352.25 9,794.32 20,738.29 Sesa Goa 180.85 53,616.14 2,187.92 120.77 17,525.33 NMDC 121.50 48,171.30 10,704.27 6,342.37 24,406.36 MOIL 212.70 3,573.36 967.12 431.72 2,765.63 Guj Mineral 83.90 2,668.02 1,676.68 600.84 2,045.72 Orissa Minerals 1,910.00 1,146.00 4.87 12.86 802.35 Indian Metals & 250.00 649.43 1,273.25 53.89 1,499.65 Ashapura Mine 39.85 330.70 478.47 32.39 -51.03 Shirpur Gold 44.50 129.66 4,046.71 2.28 305.56 Rohit Ferro Tec 10.50 119.46 2,258.54 28.92 2,088.27 20 Microns 30.40 96.25 277.10 3.24 184.15 Maithan Alloys 65.50 95.34 858.41 43.70 237.31 Parrys Sugar 19.40 38.73 100.73 -12.93 669.33 Impex FerroTech 3.65 24.63 641.76 3.97 345.36 Hira Ferro 9.65 18.90 443.92 3.84 198.46 Resurgere Mines 0.60 11.93 0.75 -68.02 768.66 Oswal Minerals 12.00 9.30 137.96 0.67 -
  • 74. PARICULARS 2012-13 2011-12 Amount (Rs. Lacs) % of total sales Amount (Rs. Lacs) % of total sales Domestic sales 60,057.79 70.27 42,602.51 68.24 Export sales 25,413.30 29.73 19,823.36 31.76 REVENUE PARAMETERS SUBSIDIARY COMPANY Anjaney alloys limited a subsidiary company has became ‘wholly owned subsidiary company’ of Maithan alloys limited during the year 2012-13 consequent upon acquisition of 1,53,75,000 equity shares of rs. 10/- each by Maithan alloys limited. BONUS SUMMARY The last bonus that Maithan Alloys had announced was in 2010 in the ratio of 1:2.The share has been quoting ex-bonus from June 17, 2010. DIVIDEND dividend of Rs.2 per share (i.e@ 20%) on 1,45,55,775 equity shares of Rs. 10 each of the Company for the financial year 2012-13. The dividend on the equity shares, if approved by the shareholders, would involve an outflow of Rs.291 lacs towards dividend and Rs. 49 lacs towards dividend tax,(i)resulting in a total outflow of Rs. 340 Lacs CAPEX PARTICULARS (LACS) 2012-13 2011-12 Gross Block 37,810.15 28,786.50 LESS: Depreciation 8,107.90 6,259.79 Net Block 29,702.24 22,526.70
  • 75. SWOT ANALYSIS STRENGTH 1. Conversion of commoditized alloys into differentiated product 2. Access to secure energy 3. Strong research and development to produce specialized grades 4. Port proximity of locations – Supports exports WEAKNESSES 1. Weak foothold outside India 2. Limited bargaining power with integrated steel plants OPPPORTUNITY 1. Backward integration to own manganese ore mines 2. Selling to growing number of mini plants producing DRI 3. Growth in other countries with the help of mergers and tie-ups THREATS 1. Threat of new entrants – others can enter specialized grade manganese segment 2. Nationalization of resources – limited manganese ore in India 3. Threat of substitutes to steel
  • 76. Financial highlights INCOME STATEMENT PARTICULARS 2009-10 2010-11 2011-12 2012-13 Net Sales & other income 47,798.93 59,441.96 64,516 86,285 -Operating Expenses 42,245.64 52,377.58 54,570.45 86978.13 EBIDTA 5,173.89 6,397.43 7,210 6,650 EBIDTA Margins (%) 14.56 19.12 11.27 7.7 -Interest(lacs) 1,368.39 694.49 419.92 1,593.35 -Depreciation 1,198.42 1,020.60 953.20 1,853.72 -Tax 1,371.21 2,365.76 1,513.45 999.09 PAT 3,023.91 7,283.40 4705 4371 DPS(Rs/share) 1 2 2 2 PARTICULAS 2009-10 2010-11 2011-12 2012-13 Share Capital 970.70 1,455.89 1,455.89 1,455.89 Reserves & Surplus 10,664.26 17,112.31 21,308.23 25,416.41 Shareholder’s Fund 11,634.96 18,568.20 22,764.12 26,872.30 Minority Interest 20.00 2,560.17 2,558.98 289.06 Capital Employed 13,850.06 14,968.40 24,273.70 29,911.38 Fixed Assets 12,814.06 12,117.40 29,030.07 29,762.38 Investment - 1,201.00 0.15 0.15 Cash 3,052.00 1,981.00 7,829.00 3,463.00 Current liabilities 13,888.00 12,464.00 22,739.00 25,570.00 Current assets 14,924.00 15,315.00 32,494.00 33,720.00 No. Of Shares 97.07 145.59 145.59 145.59 BALANCE SHEET
  • 77. CASH FLOW PARTICULARS (Rs. In lacs) 2009-10 2010-11 2011-12 2012-13 CASH FLOW FROM OPERATING ACTIVITIES 7,174.23 9,165.32 4,778.68 3,046.70 CASH FLOW FROM INVESTING ACTIVITIES (808.46) (2,802.08) (12,064.85) (4,976.29) CASH FLOW FROM FINANCING ACTIVITIES (3,922.04) (6,794.97) 11,421.74 (2,436.55) Net Increase / (Decrease) in Cash & Bank Balances 2,443.73 (431.73) 4,135.56 (4,366.13) Cash & Bank Balance (opening balance) 876.54 3,320.27 3,693.92 7,829.49 Cash & Bank Balance (closing balance) 3,320.27 2,888.54 7,829.49 3,463.36 PARTICULARS JUNE’13 MAR’13 DEC’12 SEPT’12 Sales 221.35 217.62 197.88 244.70 Operating Profit 9.03 7.00 8.69 24.56 Interest 1.77 1.59 1.54 0.77 Gross Profit 8.36 6.76 8.30 24.80 EPS (Rs.) 3.75 1.81 4.88 12.68 Net Profit 5.46 2.63 7.10 18.46 Gross Profit Margine % 3.76 3.09 4.17 10.09 Net Profit Margine % 2.46 1.20 3.57 7.51 QUARTERLY RESULT
  • 78. PARTICULARS 2009-10 2010-11 2011-12 2012-13 Profitability & Return ratios (%) EBITDA margin 14.56 19.12 11.27 7.70 EBIT margin 9.83 16.42 8.33 6.78 PAT margin 6.33 12.25 7.29 5.06 ROE 29.38 47.94 22.57 17.45 ROCE 26.11 47.25 27.57 22.13 Working Capital & Liquidity ratios Debtors turnover 9.59 11.45 10.27 9.03 Inventory turnover 8.45 7.32 4.37 5.62 Current ratio (x) 1.06 1.44 1.56 1.54 Quick ratio (x) 1.37 0.88 1.07 0.98 Turnover & Leverage ratios (x) Fixed asset turnover Total asset turnover 1.88 1.97 1.48 2.03 Interest coverage ratio 3.54 11.58 15.21 4.47 Debt equity ratio 0.97 0.46 0.89 0.75 Valuation ratios (x) EV/Sales 0.06 0.31 0.15 0.13 EV/EBIT 3.74 1.76 1.42 1.79 P/E 3.30 2.43 2.94 2.59 P/BV 1.28 0.95 0.60 0.42 RATIOS
  • 79. 20 MICRONES
  • 80. overview HISTROY: 20 Microns was founded in 1987 in the bustling industrial city of Vadodara to manufacture White Minerals of supreme quality. Ever since then, 20 Microns sustained efforts towards excellence and innovation has made it a prominent name in the industrial arena.  BSUSINESS: 20 Microns is India’s largest producer of white minerals offering innovative products in the field of Functional fillers, Extenders and Speciality chemicals. Based on a profound understanding of diverse industrial requirements, the company has empowered its clients with customized products based on their specific requirements. Our exceptional product quality is equally matched with our excellence in problem solving capabilities and technical customer service. LOCATED IN: Vadodara / Waghodia, Bhuj, Mumbai, Hosur, Kolkata, Haldwani, Chennai, Swaroopgunj, Hyderabad, Udaipur, Delhi, Kanpur, Alwar, Tirunelveli.
  • 81. PRODUCTS: Calcite, Dolomite, Barities, Talc, Calcined Kilin, Silica, Mica, Feldspar & Lithomer.The company’s products are principally used in plastic, paints and powder coatings, paper, rubber, electrical insulation, textile, ceramics, inorganic pigments and ink, agro chemicals, industrial, and construction applications. MANAGEMENT Name Designation Chandresh S Parikh Chairman & Managing Director Rajesh C Parikh Managing Director Atil C Parikh Joint Managing Director Sudhir R Parikh WTD & Director (Finance) Anuja Muley Company Secretary Pravinchandra M Shah Director Atul Patel Director Naresh S Makhija Nominee (IDBI) Ram A Devidayal Director
  • 82. CATEGORIES NO. OF SHARES % SHAREHOLDING Promoter & Promoter Group 2,01,88,621 63.76 Bodies Corporate 33,48,127 10.57 Clearing Members 59,825 0.19 Non Resident Indians 18,06,703 5.71 Trusts 78,168 0.25 Other Individuals 61,80,612 19.52 TOTAL 3,16,62,056 100.00 SHAREHOLDING PATTERN Market Cap (Rs. in Cr.) 97.99 Book Value 21.84 EPS (TTM) 3.30 Price/Book 1.39 Face value 5.00 P/E 9.38 52-Week high/LOW 86.20/ 29.70 Div Yield(%) 2.63 KEY POINTS
  • 83. SUBSIDIARIES 20 Microns Nano Minerals Limited (Indian) 20 Microns SDN. BHD. (Foreign) 20 Microns FZE (Foreign) PARTICULARS (LACS) 2012-13 2011-12 Gross Block 18,768.54 11,524.94 LESS: Depreciation 4,826.83 4,124.34 Net Block 14,285.49 10,967.83 CAPEX PARTICULARS (Rs. in lacs) 2012-13 2011-12 Domestic 25495.05 24180.69 Export 3021.76 2587.72 Product wise Dry mineral product 21233.98 19,875.48 Wet mineral product 6221.40 6,062.53 Other 166.78 382.47 REVENUE
  • 84. COMPETITORS Name Last Price Market Cap. (Rs. cr.) Sales Turnover Net Profit Total Assets Coal India 278.10 175,658.09 352.25 9,794.32 20,738.29 Sesa Goa 180.85 53,616.14 2,187.92 120.77 17,525.33 NMDC 121.50 48,171.30 10,704.27 6,342.37 24,406.36 MOIL 212.70 3,573.36 967.12 431.72 2,765.63 Guj Mineral 83.90 2,668.02 1,676.68 600.84 2,045.72 Orissa Minerals 1,910.00 1,146.00 4.87 12.86 802.35 Indian Metals & 250.00 649.43 1,273.25 53.89 1,499.65 Ashapura Mine 39.85 330.70 478.47 32.39 -51.03 Shirpur Gold 44.50 129.66 4,046.71 2.28 305.56 Rohit Ferro Tec 10.50 119.46 2,258.54 28.92 2,088.27 20 Microns 30.40 96.25 277.10 3.24 184.15 Maithan Alloys 65.50 95.34 858.41 43.70 237.31 Parrys Sugar 19.40 38.73 100.73 -12.93 669.33 Impex FerroTech 3.65 24.63 641.76 3.97 345.36
  • 85. SWOT ANALYSIS Strength: 1.Ability to factor client requirements. 2. Diversified market - Strong presence in India and 47 other countries. 3.Ownership of mineral mines as well manufacturing units – no supplier issues. 4. Strong R&D and operational efficiency.  Weaknesses: 1. Does not own power sources. 2. Government regulations put a lot of restrictions on operations and expansions.  Opportunities: 1 Expansion of industries targeted. 2.Increasing popularity of synthetic minerals. 3. Expanding geographical locations and international tie-ups.  Threats: 1.Resource limitation – Limited mineral resources in India.
  • 86. FINANCIAL HIGHLIGHTS PARTICULARS (in lacs) 2009-10 2010-11 2011-12 2012-13 Total Revenue 17,999.13 24,072.38 26770.17 28123.26 PBDIT 2,300.13 2,555.41 3525.90 3720.38 Interest for the year 804.04 1,061.61 1408.52 1554.68 Depreciation for the year 475.05 533.30 631.80 748.42 Profit before tax and Exceptional item 1,021.04 960.50 1485.58 1417.28 Exceptional items - 39.42 - 851.93 Profit/(loss) for the year 1,021.04 921.08 1485.58 565.35 Tax liability :- Current Year’s Tax 173.75 245.40 363.25 148.01 MAT Credit (Minimum Alternative Tax) (169.02) 65.21 - 147.00 Deferred Tax Liability/(Asset) 286.57 60.28 44.26 239.97 Net Profit/(loss) for the year 729.74 550.19 1078.08 324.37 INCOME STATEMENT PARTICULARS (Rs. In lacs) 2009-10 2010-11 2011-12 2012-13 CASH FLOW FROM OPERATING ACTIVITIES 328.81 568.92 1178.44 3906.26 CASH FLOW FROM INVESTING ACTIVITIES (1966.38) (1479.87) (3971.37) (4032.89) CASH FLOW FROM FINANCING ACTIVITIES 1786.77 967.31 2863.95 (258.21) Net Increase / (Decrease) in Cash & Bank Balances 149.20 56.36 71.02 (384.84) Cash & Bank Balance (opening balance) 493.63 642.83 699.19 770.21 Cash & Bank Balance (closing balance) 642.83 699.19 770.21 385.37 CASH FLOW STATEMENT
  • 87. PARTICULARS (RS. IN CR.) MAR 2013 MAR 2012 MAR 2011 MAR 2010 SOURCES OF FUNDS : Share Capital 15.83 14.33 14.33 14.33 Reserves and Surplus 51.44 43.45 30.19 26.14 Total Shareholders Funds 67.27 57.78 44.52 40.47 Secured Loans 51.42 137.68 105.04 74.45 Unsecured Loans 75.20 21.29 15.65 12.90 Total Debt 126.62 158.97 120.69 87.35 Minority Interest - 0.08 0.08 0.08 Total Liabilities 267.14 216.83 165.29 127.90 APPLICATION OF FUNDS : Gross Block 187.68 127.54 116.86 99.04 Less: Accum. Depreciation 48.26 43.26 38.70 33.70 Net Block 142.85 84.28 78.16 65.34 Capital Work in Progress 3.43 37.11 4.79 5.87 Investments 7.37 0.69 0.69 0.69 Current Assets, Loans and Advances Inventories 44.31 52.63 43.09 35.39 Sundry Debtors 44.95 52.77 45.88 30.96 Cash and Bank Balance 3.96 9.15 11.20 7.37 Loans and Advances 20.28 31.97 29.50 15.24 Other Current Assets 1.05 - - - Less: Current Liab. and Prov. Current Liabilities 119.17 48.61 45.50 31.21 Provisions 2.05 3.16 2.52 1.83 Net Current Assets 113.47 94.75 81.65 55.92 Total Assets 267.14 216.83 165.29 127.90 BALANCE SHEET
  • 88. PARTICULARS (Rs. In Cr.) JUN 2013 MAR 2013 DEC 2012 SEP 2012 Net Sales Turnover 67.30 62.71 70.51 69.32 Other Income 1.12 1.54 1.47 0.56 Total Income 68.42 64.25 71.98 69.88 Total Expenses 62.16 52.67 72.19 62.73 EBITDA 6.26 11.58 -0.21 7.15 Depreciation 2.43 2.03 2.01 1.80 EBIT 3.83 9.55 -2.22 5.35 Interest 5.15 4.13 3.37 3.97 PBT -1.32 5.42 -5.59 1.38 Tax 0.13 2.53 -1.81 0.41 Net Profit -1.45 2.89 -3.78 0.97 Equity 15.83 15.83 15.83 14.33 Face Value 5.00 5.00 10.00 10.00 QUARTERLY RESULTS KEY RATIOS MAR 2013 MAR 2012 MAR 2011 MAR 2010 Debt-Equity Ratio 1.88 2.72 2.44 1.92 Current Ratio 0.96 0.81 0.92 1.16 Fixed Assets 2.60 2.52 2.42 2.08 Inventory 6.12 6.43 6.66 6.90 Debtors 5.76 6.24 6.80 6.92 Interest Cover Ratio 1.99 1.98 1.96 2.11 EPS 3.30 7.52 3.84 5.09 PBIDT (%) 13.22 12.43 10.73 11.67 PBIT (%) 10.56 10.18 8.50 9.11 PATM (%) 1.53 3.59 2.49 3.19 ROCE (%) 20.36 16.38 15.15 15.42 RONW (%) 21.60 21.55 15.27 15.75 RATIOS
  • 89. COAL INDIA LIMITED
  • 90. OVERVIEW  History In 1951 the Working Party for the coal Industry was set up which included representatives of coal industry, labour unions and government which suggested the amalgamation of small and fragmented producing units. Thus the idea for a nationalized unified coal sector was born  Formation of Coal India Limited The Coking Coal Mines (Emergency Provisions) Act 1971 was declared by Government on 16 October 1971 under which except the captive mines of IISCO, TISCO, and DVC, the Government of India took over the management of all 226 coking coal mines and nationalized them on 1 May, 1972. Bharat Coking Coal Limited was thus born. Further by transmission of Coal Mines (Taking over of Management) Ordinance 1973 on 31 January 1973 the Central Government took over the management of all 711 non- coking coal mines. In the next phase of nationalization these mines were nationalized with effect from 1 May 1973 and a public sector company named Coal Mines Authority Limited (CMAL) was formed to manage these non coking mines.A formal holding company in the form of Coal India Limited was formed in November 1975 to manage both the companies.  COMPANY BACKGROUND Industry Type: Mining/ Minerals House Name: Public Sector Year of Incorporation: 1973 District: Kolkata State: West Bengal Website: http://www.coalindia.in
  • 91.  MANAGEMENT Functional Directors: Shri S.Narsing Rao : Chairman Shri R. Mohan Das : Personnel & Industrial Relations Shri N. Kumar : Technical Shri B.K.Saxena : Marketing Shri A. Chatterjee : Finance Independent Directors: Prof. S. K. Barua Dr. R. N. Trivedi Dr.(Smt) Sheela Bhide Dr. Mohd. Anis Ansari Shri Kamal R.Gupta Ms.Sachi Chaudhuri Company Secretary: M.Viswanathan
  • 92.  Subsidiary Companies 1. Eastern Coalfields Limited (ECL), Sanctoria, West Bengal 2. Bharat Coking Coal Limited (BCCL), Dhanbad, Jharkhand 3. Central Coalfields Limited (CCL), Ranchi, Jharkhand 4. South Eastern Coalfields Limited (SECL), Bilaspur, Chattisgarh 5. Western Coalfields Limited (WCL), Nagpur, Maharashtra 6. Northern Coalfields Limited (NCL), Singrauli, Madhya Pradesh 7. Mahanadi Coalfields Limtied (MCL), Sambalpur, Orissa 8. Coal India Africana Limitada, Mozambique 9. The consultancy company is Central Mine Planning and Design Institute Limited (CMPDIL), Ranchi, Jharkhand.  Joint Venture Companies of CIL: 1. CIL NTPC Urja Pvt Ltd. 2. MAMC Industries Limited. 3. International Coal Ventures Private Limited.
  • 93. CORPORATE STRUCTURE
  • 94. PRODUCTS & SERVICES COKING COAL SEMI COKING COAL NLW COKING COAL NON-COKING COAL WASHED AND BENEFICIATED COAL MIDDLINGS REJECTS CIL COKE / LTC COKE COAL FINES / COKE FINES TAR / HEAVY OIL / LIGHT OIL / SOFT PITCH KEY FUNDAMENTALS PARTICULARS 2012-13 Market cap (Rs. In cr.) 1,85,196 P/E 11.16 Dividend yield (%) 4.91 52-week high/low (Rs) 386.00/238.35 B/V per share 76.74 Face value 10 EPS 26.28
  • 95. COMPETITION Name Last Price Market Cap. (Rs. cr.) Sales Turnover Net Profit Total Assets Coal India 261.10 164,920.27 352.25 9,794.32 20,738.29 NMDC 117.85 46,724.18 10,704.27 6,342.37 24,406.36 Sesa Goa 184.45 16,030.58 2,187.92 120.77 17,525.33 MOIL 207.60 3,487.68 967.12 431.72 2,765.63 Guj Mineral 82.05 2,609.19 1,676.68 600.84 2,045.72 Orissa Minerals 1,752.10 1,051.26 4.87 12.86 802.35 Indian Metals & 216.00 561.10 1,273.25 53.89 1,499.65 Ashapura Mine 38.50 319.50 478.47 32.39 -51.03 Shirpur Gold 45.00 131.12 4,046.71 2.28 305.56 Rohit Ferro Tec 9.90 112.64 2,258.54 28.92 1,610.03 20 Microns 30.50 96.57 277.10 3.24 184.15 Maithan Alloys 65.50 95.34 858.41 43.70 237.31 Parrys Sugar 20.40 40.72 100.73 -12.93 669.33 Impex FerroTech 3.10 20.92 641.76 3.97 345.36 Hira Ferro 10.00 19.59 443.92 3.84 206.14 Resurgere Mines 0.55 10.94 0.75 -68.02 768.66 Oswal Minerals 12.00 9.30 137.96 0.67 - AML Steel 4.85 3.64 112.45 0.06 126.99
  • 96. CAPEX DIVIDEND The Board of Directors in the meeting held on 20th May,2013 has recommended a final dividend for FY 2012–13 @ ` 4.30 per share which amounts to ` 2716.04 crores. This is over and above the interim dividend for 2012–13 paid @ ` 9.70 per share amounting to ` 6126.87 crores. SHAREHOLDING PATTERN PARTICULARS (Rs. In cr.) 2012-13 2011-12 Gross Block 396.94 276.62 Category Total no. of shares % of Equity GOI 5684727960 90.00 FIIs 343348109 5.44 Indian Public 77359621 1.23 Banks, Insurance & FI 81137248 1.28 Private Corporate Bodies 77128694 1.22 Mutual Funds 45135023 0.71 NRI/ QFI/FRN’s 1696762 0.03 Others 5830983 0.09 TOTAL 6316364400 100.00
  • 97. PROJECTS Ongoing Projects  148 on-going projects, costing Rs. 2 Crs and above.  Out of this, 85 ongoing projects contributed to the tune of 212.04 Mt. during the terminal year of XIth Five Year Plan, i.e. 2011-12.  During the 1st year of the XIIth Five Year Plan, 90 ongoing projects contributed 260.80 Mt.  The envisaged contribution during the terminal year of the XIIth Five Year Plan, i.e. 2016-17, is 335.46 Mt from 134 ongoing projects.  Both forestry and environmental clearances have already been received for 90 projects. Environmental and forestry clearances are awaited for 9 and 34 projects respectively. Future Projects  A total of 126 projects, with an estimated capacity of 438.04 Mty, have been identified.  60 projects are envisaged to contribute about 88 Mt during the terminal year of the XIIth Five Year Plan, i.e. 2016-17.  Out of these 126 identified projects, PRs for 78 projects have already been formulated.  Four projects, having an estimated capacity of 12.50 Mty with an investment of ` 2294.79 Crs, have been sanctioned during the XIIth Five Year Plan.
  • 98. SWOT ANALYSIS  STRENGTHS: 1. The largest coal producer and reserve holder in the world 2.Well positioned to capitalize on the high demand for coal in India 3.Track record of growth and cost efficient operations 5. Strong capabilities for exploration, mine planning, research and development  WEAKNESSES: 1.High cost of production in underground (legacy) mines resulting into losses in such mines 2.Evacuation of coal largely dependent on external agencies which is often a constraint. 3.Dominance of low grade coal in available resources  OPPORTUNITIES: 1.Strong economic growth in India and resultant demand for energy opens huge growth opportunities for CIL 2.Coal is cheapest source of energy and thus demand will continue to remain strong, comparative to alternate energy sources available in India. 3.Increased business opportunity through the use of imported coal by blending the same with domestic coal to remove mismatch in quantity and quality.  THREATS 1.Difficulty in obtaining clearances in respect of coal resources under forest cover & tribal lands. 2.Large tract of coal bearing zones being situated in populated areas & thus prone to operational disruptions. 3.Possibility of negative impact of climate change initiatives on the use of coal. 4.Near total dependence on Indian Railways for evacuation of coal.
  • 99. FINANCIAL HIGHLIGHTS PARTICULARS (CR.) 2010-11 2011-12 2012-13 Net Sales 461.24 464.29 416.63 Operating Profit 4933.38 8985.89 10718.74 Other Income 5072.50 9115.18 11088.08 Interest 203.93 378.98 375.75 Depreciation 6.08 6.96 4.96 Profit Before Tax 4723.37 8599.95 10338.03 Tax 27.27 534.85 543.71 Profit After Tax 4696.10 8065.10 9794.32 INCOME STATEMENT PARTICULARS (CR) 2011-12 2012-13 CASH FLOW FROM OPERATING ACTIVITIES 19887.87 9109.41 CASH FLOW FROM INVESTING ACTIVITIES (10410.37) (1832.73) CASH FLOW FROM FINANCING ACTIVITIES (7382.13) (7851.94) Net Increase / (Decrease) in Cash & Bank Balances 2095.37 (575.26) Cash & Bank Balance (opening balance) 10164.82 12260.19 Cash & Bank Balance (closing balance) 12260.19 11684.93 CASH FLOW
  • 100. PARTICULAS 2010-11 2011-12 2012-13 Share Capital 6316.36 6316.36 6316.36 Reserves & Surplus 11693.66 14035.64 17526.65 Net worth 33314.20 40453.02 48471.99 Long term loans & advances 845.35 1017.25 1181.36 Minority Interest (cr) 32.61 53.60 63.60 Capital Employed 54495.72 66599.31 75488.14 Fixed Assets 12843.31 13440.29 13465.76 Investment 850.96 946.99 1400.30 Cash 45806.44 58202.78 62236.00 Current assets 68367.65 87415.00 99692.20 Current liabilities 26,682.64 34,255.98 37,669.82 Deferred Tax Assets 873.23 1194.06 2255.02 Capital Deployed 54495.72 66599.31 75488.14 No. Of Shares 6316364400 6316364400 6316364400 BALANCE SHEET
  • 101. RATIOS PARTICULARS 2010-11 2011-12 2012-13 Operating Ratio(Sales-Profit/Sales) 0.62 0.66 0.63 EBIT Margin 32.92 34.17 36.64 Net Profit Margin 32.78 34.08 36.57 Return On Net Worth 36.74 40.05 38.98 ROCE 30.21 31.94 33.09 Receivables Turnover 21.56 17.27 10.94 Inventory Turnover 12.06 13.45 15.10 Current Ratio (X) 2.56 2.55 2.65 Quick Ratio (X) 1.84 1.86 1.93 Total Asset Turnover 1.68 2.10 2.29 Interest Coverage Ratio 12.06 13.45 15.10 DPS (Rs) 3.90 10.00 14.00 Debt/Equity 0.21 0.21 0.17