STEEL

Financial Statement Analysis

Steel Industry

STEEL

CMA Sahil Dargan

STEEL

Third-largest producer of crude steel

Strong growth opportunities

Technological Advancement

Rising domestic and international investments

Advantage India

Advantage India

Market Value : USD 87.8

Billion

Robust Demand

Increasing Investment

Competitive Advantage

Policy Support

2015E 2025E Market Value :

USD300 billion

STEEL

MARKET OVERVIEW

&

TRENDS

STEEL

1907-1918

1954-1964

1973-1992

2015

1993-2014

Production of steel

started in India (TISCO)

•HSL & Bokaro Steel were

setup.

•Public sector dominated

steel production

SAIL was created

as a holding company to

oversee most of India‘s

production

• Foreign players entered

• Decontrol of domestic steel

Prices

• Reduction in basic

custom duty for initial set

up

•Government is

implementing many

infra projects

STEEL

Structure of Steel Sector

STEEL

Total Finished Steel Production

(MT)

13.25 12.52 12.82 13.44 9.38

55.37 63.18 68.86 74.24

55.82

Private Sector

Public Sector

STEEL

Key Market Players STEEL

STEEL

Growing Investments Entry of Intl Cos.

Strategic Alliances

Increased Emphasis on Technological Innovation

Notable Trends

Key Steel Plants in India

Key Steel

Plants

STEEL

Rising Investments

STEEL

Analysis Stories

STEEL

0

0.1

0.2

0.3

0.4

0.5

Quick Ratio

Quick Ratio

2015 (Q3)

2015 (Q2)

2015 (Q1)

2014 (Q4)

2014 (Q3)

Quick Ratio

0.47 0.38 0.38 0.38 0.39 Ranking # 37 # 51 # 53 # 52 # 53

STEEL

2015 (Q3)

2015 (Q2)

2015 (Q1)

2014 (Q4)

2014 (Q3)

Working Capital Ratio 2.47 2.36 2.37 2.32 2.3

Ranking # 9 # 13 # 12 # 13 # 14

2.2

2.25

2.3

2.35

2.4

2.45

2.5

WC Ratio

WC Ratio

STEEL

2015 (Q3)

2015 (Q2)

2015 (Q1)

2014 (Q4)

2014 (Q3)

Leverage Ratio 1.42 1.76 1.74 1.74 1.73

Ranking # 27 # 41 # 41 # 44 # 45

0 0.2 0.4 0.6 0.8

1 1.2 1.4 1.6 1.8

Leverage Ratio

Leverage Ratio

STEEL

2015 (Q3)

2015 (Q2)

2015 (Q1)

2014 (Q4)

2014 (Q3)

Total Debt to Equity 0.74 0.9 0.87 0.85 0.84

Ranking # 41 # 54 # 53 # 50 # 53

0

0.5

1

1.5

2

Total Debt to Equity

Total Debt to Equity

STEEL

2015 (Q3)

2015 (Q2)

2015 (Q1)

2014 (Q4)

2014 (Q3)

Interest Coverage 4.29 3.9 4.6 5.54 4.68

Ranking # 70 # 78 # 77 # 69 # 75

0

1

2

3

4

5

6

Interest Coverage

Interest Coverage

STEEL

0

0.1

0.2

0.3

Debt Coverage

Debt Coverage

2015 (Q3)

2015 (Q2)

2015 (Q1)

2014 (Q4)

2014 (Q3)

Debt Coverage 0.23 0.22 0.26 0.3 0.26

Ranking # 66 # 74 # 67 # 63 # 67

STEEL

STEEL

Business Model STEEL

STEEL

STEEL

STEEL

STEEL

STEEL

STEEL

Financial Performance

Tata Steel

STEEL

STEEL

STEEL

STEEL

STEEL

HIGHLIGHTS

STEEL

Reaping Benefits Of

Prudent Investments

STEEL

STEEL Reaping Benefits Of

Prudent Investments

STEEL

Transition Into Integrated

Steel Producer

STEEL

STEEL

STEEL

STEEL

STEEL

STEEL Industry

Thank You CMA Sahil Dargan