2. Indian mining and metals sector is an essential segment of the economy and a
significant contributor to the India`s GDP.
Presently, India produces nearly 95 minerals, which includes 4 fuel, 10
metallic, 23 non-metallic, 3 atomic and 55 minor minerals (including building
and other materials).
India became the world’s second largest crude steel producer in 2018 with an
output of 106.5 million tonnes
Mining industry contribute 2.70 % in Indian GDP.
http://statisticstimes.com/economy/sectorwise-gdp-contribution-of-india.php
4. SOURCE - IBEF
1.Rise in infrastructure
development and automotive
production driving growth in
the sector.
2. Power and cement
industries also aiding growth
in the metals and mining
sector.
1. The Ministry of Steel aims
to increase the steel
production capacity to 300
million tonnes by 2030-31
from 134.6 million tonnes in
2017-2018 indicating new
opportunities in the sector.
1.100 per cent FDI allowed in
the mining sector and
exploration of metal and non
metal ores under the
Automatic Route.
5. The company was founded in Bombay (now Mumbai) in 1976 by Anil Agarwal.
Vedanta resources, a global diversified natural resources company.
Produces zinc - lead - silver, copper, iron ore, oil & gas, Aluminum and commercial power,
with operations across India, south Africa, Zambia, Namibia, Australia and Ireland.
It is listed on the London Stock Exchange, and is a constituent of the FTSE 250 Index.
Cairn India merged with Vedanta(2017). After merger with Cairn India, combined entity to have
a market capitalization of $15.6 billion
6. PRODUCTS AND SERVICES
1.OIL AND
GAS
Operator of
25 % of India
crude oil
production
2.ALUMINIUM
40% Shares
in Indian
primary
market
3.COPPER
.33% Market
share for
refined
copper in
India
4 .ZINC LEAD
SILVER
. 78% MARKET
SHARE Indian
zinc
. World’s second-
largest integrated
zinc-lead producer,
5. POWER
Vedanta is
one of
India’s
largest
private
sector power
generators
7. 1. Vedanta
Resources has a
Strong Distribution
network with a
large number of
outlets.
2.It has a skilled
labor force that is
highly qualified,
innovative and
diversified.
1.A high proportion
of property in use
by Vedanta
Resources Plc is
on rent, and rental
charges need to be
paid.
2.It has a high
employee turnover
rate, with low
employee
motivation and
working morale.
1.Household
income is
increasing and so
is the consumer
spending.
2. Government is
offering subsidies
on these.
3.Interest rates are
low, which provides
an investment
opportunity for
large projects.
1.The exchange
rate has been
devalued.
2.Fuel price has
risen in recent
years making
inputs expensive.
3.More substitute
products are now
available.
8. Competitors
Sl No Company
Name
Last Price % change 52 WK High 52 WK Low Market
Cap(Rs .
Cr)
1
Coal India 239.8 -0.27 303 212 147782.23
2
VEDANTA 183.9 1.43 313.5 145.9 68359.25
3
NMDC 104.15 0.53 126.15 86.45 31889.16
4
MOIL 159.95 -1.02 220.55 140.2 4120.45
5
Guj Mineral 77.05 -0.64 147 69 2450.19
6
Maithan Alloys 515.45 0.82 924.6 339.75 1500.55
www.moneycontrol.com/stocks/marketinfo/marketcap/bse/mining-minerals.html
13. The Working Capital Cycle for a business is the length of time it takes to convert net
working capital (CA-CL) into cash.
FORMULA = Inventory days + Receivable Days – Payable Days
Particulars Days
Days Inventory Outstanding 123.93
Days Sales Outstanding 12.40
Accounts Payable Turnover Days 194.05
-57.72
• This means the company receives payment from customers 58 days before it has
to pay its suppliers..
Source: Bloomberg
14. The debt-to-equity ratio is a
measure of the relationship
between the capital contributed by
creditors and the capital contributed
by shareholders.
Debt-to-Equity Ratio = Total Debt /
Total Equity
Gross debt at 58,159 crore
(FY2017: 71,569 crore), a
reduction of 8,512 crore in 12
months
https://www.vedantaresources.com/VedantaDocuments/vedanta_resources_2018ar_online_version.pdf
15. Gross debt at 58,159 crore (FY2017: 71,569 crore), a reduction of 8,512 crore in
12 months (excluding repayment of temporary borrowing by Zinc India and
preference shares issued pursuant to the Cairn India merger in April 2017)
Strong financial position with cash and liquid investments of 36,201 crore
Crisil upgraded the Company’s Rating (CFR) from ‘AA/Stable to ‘AA/Positive’
Vedanta Limited announced a record interim dividend of 7,881 crore in March
2018
Contribution to the exchequer of 33,000 crore in FY2018
https://www.vedantaresources.com/VedantaDocuments/vedanta_resources_2018ar_online_version.pdf
16. SL NO NAME RATIOS DESCRIPTION
2017 2018
1 Current Ratio (x) 0.93 0.82
A liquidity ratio that measures a company ability to pay short-term obligations.
The higher the current ratio, the more capable the company is of paying its
obligations.
2 Quick Ratio (x) 0.75 0.56
The quick ratio measures a company's ability to meet its short-term obligations
with its most liquid assets. For this reason, the ratio excludes inventories from
current assets
3 Interest Coverage Ratio (x) 2.45 3.33
It is used to determine how easily a company can pay interest on outstanding
debt. It is calculated by dividing a company EBIT by the interest expenses
4 Net Profit Margin (%) 14.90 15.67
Net Profit Margin is a financial ratio used to calculate the percentage of profit
a company produces from its total revenue. .
5 Return On Asset (%) 5.98 7.37
An indicator of how efficient management is at using its assets to generate
earnings. Calculated by dividing a company annual earnings by its total assets
6
Return On Equity (%) 21.69 22.14
Also called Return on net worth, it measures a company profitability by
revealing how much profit a company generates with the money shareholders
have invested, it is calculated by dividing the net profit after tax by
shareholder's fund For high growth companies you should expect a higher
ROE.
17.
18.
19. ROCE -ratio measures how well a company is generating profits from its capital.
NMDC - National Mineral Development Corporation
MOIL - Manganese Ore India Limited
