Tata Steel, 1Q FY 2014
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Transcript of Tata Steel, 1Q FY 2014
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7/27/2019 Tata Steel, 1Q FY 2014
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Please refer to important disclosures at the end of this report 1
Standalone (` cr) 1QFY14(S) 1QFY13(S) % chg (yoy) 4QFY13(S) % chg (qoq)Net revenue 9,455 8,908 6.1 10,771 (12.2)EBITDA 2,834 2,780 2.0 3,304 (14.2)
Margin (%) 30.0 31.2 (123)bp 30.7 (70)bpAdj. PAT 1,356 1,357 (0.0) 1,993 (32.0)
Source: Company, Angel Research
Mixed performance from standalone business continues: Tata Steels Indianoperations posted a net sales growth of 6.1% yoy to `9,455cr, mainly due to
increase in volumes, although the same was partially offset by decline in
realizations. Volumes increased by 26.4% yoy to 2.0mn tonne and net steelrealizations declined by 13.4% yoy to `44,607/tonne. However, the standalone
PAT was flat yoy at `1,356cr due to rising costs of inputs.
Consolidated (` cr) 1QFY14(C) 1QFY13(C) % chg (yoy) 4QFY13(C) % chg (qoq)Net revenue 32,805 33,821 (3.0) 34,650 (5.3)EBITDA 3,688 3,403 8.4 4,369 (15.6)
Margin (%) 11.2 10.1 118bp 13 (137)bpAdj. PAT 1,121 598 87.5 884 26.8European operations reports better-than-expected profitability: On a consolidatedbasis, the company posted a 3.0% yoy decline in net sales to `32,805cr. Tata
Steel Europe (TSE)s volumes declined by 2.2% yoy to 3.1mn tonne. However, itreported an EBITDA/tonne of US$44 compared to US$36 in 1QFY2013 due to
better cost control efforts at the European operations. The consolidated EBITDA
increased by 8.4% yoy to `3,688cr. The companys tax expenses declined 60.9%
yoy due to benefits of deferred taxes in the European operations; hence the
adjusted net profit grew by 87.5% yoy`1,121cr.
Outlook and valuation: We maintain our positive stance on Tata Steel owing to itsbuoyant business outlook, driven by a) higher sales volume in FY2014-15 on the
back of 2.9mn tonne brownfield expansion project in Jamshedpur, b) raw-material
projects at Mozambique and Canada and c) restructuring initiatives at TSE. Wemaintain our Buy rating on the stock with a revised SOTP target price of `313.Key financials (Consolidated)
Y/E March (` cr) FY2012 FY2013 FY2014E FY2015ENet sales 132,900 134,712 150,121 160,679% chg 11.9 1.4 11.4 7.0
Reported PAT 5,390 332 3,708 5,106% chg (40.0) (93.8) 1016.1 37.7
Adj. EPS (`) 20.9 3.4 38.2 52.6EBITDA margin (%) 9.3 9.1 10.1 10.8
P/E (x) 11.5 70.5 6.3 4.6
P/BV (x) 0.5 0.7 0.6 0.6
RoE (%) 13.8 0.9 10.4 12.9RoCE (%) 9.3 7.0 9.1 10.6
EV/Sales (x) 0.4 0.5 0.5 0.4
EV/EBITDA (x) 4.7 5.3 4.6 4.1
Source: Company, Angel Research: Note: CMP as of 13th August 2013
BUYCMP `241
Target Price `313
Investment Period 12 months
Stock Info
Sector
Net Debt (` cr) 60,246
Bloomberg Code TATA@IN
Shareholding Pattern (%)
Promoters 31.4
MF / Banks / Indian Fls 26.4
FII / NRIs / OCBs 15.7Indian Public / Others 26.5
Abs. (%) 3m 1yr 3yr
Sensex (2.3) 9.1 5.9
Tata Steel (21.0) (39.0) (54.2)
Face Value (`)
BSE Sensex
Nifty
Reuters Code
Steel
Avg. Daily Volume
Market Cap (` cr)
Beta
52 Week High / Low
10
19,230
5,699
TISC.BO
23,421
1.3
448/195
875,389
Bhavesh ChauhanTel: 022- 3935 7800 Ext: [email protected]
Vinay RachhTel: 022- 39357600 Ext: 6841
Tata SteelPerformance Highlights
1QFY2014 Result Update | Steel
August 14, 2013
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Tata Steel | 1QFY2014 Result Update
August 14, 2013 2
Exhibit 1:1QFY2014 performance (Standalone)Standalone (` cr) 1QFY14 1QFY13 yoy % 4QFY13 qoq % FY2013 FY2012 yoy %Net Sales 9,455 8,908 6.1 10,771 (12.2) 38,199 33,933 12.6- Consumption of Raw Material 2,119 2,003 5.8 3,113 (31.9) 9,473 7,794 21.5(% of Net Sales) 22.4 22.5 28.9 24.8 23.0
- Power& Fuel 653 548 19.1 561 16.3 2,321 1,804 28.7
(% of Net Sales) 6.9 6.1 5.2 6.1 5.3
- Staff Costs 1,003 859 16.7 1,036 (3.2) 3,609 3,047 18.4
(% of Net Sales) 10.6 9.6 9.6 9.4 9.0
Freight & Handling 635 482 31.7 699 (9.2) 2,261 1,704 32.7
(% of Net Sales) 6.7 5.4 6.5 5.9 5.0
- Other expenses 2,212 2,236 (1.1) 2,058 7.5 8,957 7,839 14.3
(% of Net Sales) 23.4 25.1 19.1 23.4 23.1
Total Expenditure 6,621 6,128 8.0 7,467 (11.3) 27,073 22,397 20.9
Operating Profit 2,834 2,780 2.0 3,304 (14.2) 11,126 11,537 (3.6)OPM (%) 30.0 31.2 30.7 29.1 34.0
Interest 466 454 2.6 459 1.5 1,877 1,925 (2.5)
Depreciation 460 354 29.7 461 (0.3) 1,640 1,151 42.5
Other Income 144 152 (5.1) 475 (69.6) 902 886 1.8
Exceptional Items 0 0 (684) (675) 511 (232.0)
Profit before Tax 2,053 2,123 (3.3) 2,174 (5.6) 7,837 9,857 (20.5)(% of Net Sales) 21.7 23.8 20.2 20.5 29.0
Tax 696 766 (9.1) 865 (19.5) 2,774 3,161 (12.3)
(% of PBT) 33.9 36.1 39.8 35.4 32.1
Net income 1,356 1,357 (0.0) 1,309 3.6 5,063 6,696 (24.4)Adjusted net income 1,356 1,357 (0.0) 1,993 (32.0) 5,738 6,185 (7.2)
Source: Company, Angel Research
Result highlights - Standalone
Net sales increased by 6.1% yoyTata Steels Indian operations posted a net sales growth of 6.1% yoy to `9,455cr,
mainly due to increase in volumes, although the same was partially offset by
decline in realizations. Volumes increased by 26.4% yoy to 2.0mn tonne. Net steel
realizations declined by 13.4% yoy to`
44,607/tonne.
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Tata Steel | 1QFY2014 Result Update
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Exhibit 2:Standalone realization down 13.4% yoy
Source: Company, Angel Research
Exhibit 3: Standalone top-line grew by 6.1% yoy
Source: Company, Angel Research
Higher costs mute EBITDA growthTata Steels India operations EBITDA grew by only 2.0% yoy to `2,834cr and
EBITDA margin slipped 123bp yoy due to rising costs of freight, power and fuel.
The EBITDA/tonne decreased by 19.6% yoy to `14,413. The other income for the
quarter decreased by 5.1% yoy to `144cr and depreciation charges increased by
29.7% yoy to `460cr due to capitalization of 2.9mn tonne brownfield expansion at
Jamshedpur. Hence, the standalone PAT was flat yoy at `1,356cr.
Exhibit 4:Quarterly performance trend (Tata Steel India)(US$ mn) 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14Deliveries (mn tonne) 1.6 1.8 1.6 1.7 1.9 2.3 2.0EBITDA (`/tonne) 17,579 16,625 17,932 16,084 13,163 16,289 14,413
Source: Company, Angel Research
Exhibit 5:Standalone EBITDA margin stood at 30.0%
Source: Company, Angel Research
Exhibit 6:Standalone net profit was flat yoy
Source: Company, Angel Research
1.6 1.7 1.6 1.6 1.61.8
1.61.7
1.9
2.3
2.0
0
10,000
20,000
30,000
40,000
50,000
60,000
0.0
0.5
1.0
1.5
2.0
2.5
3QFY11
4QFY11
1QFY12
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
(`/tonne)
(mntonnes
)
Sales volume (LHS) Realisation (RHS)
8,142 8,305
9,4798,908 9,151
9,370
10,771
9,455
0
2
4
6
8
10
12
14
16
18
0
2,000
4,000
6,000
8,000
10,000
12,000
2QFY12
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
(%)
(`cr)
Revenue (LHS) yoy change (RHS)
30.731.6
31.2
27.5 27.0
30.7
30.0
24
2526
27
28
29
30
31
32
33
0
500
1,000
1,500
2,000
2,500
3,000
3,500
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
(%)
(`cr)
EBITDA (LHS) Margin (RHS)
1,4211,561
1,357 1,351
1,046
1,3091,356
(30)
(20)
(10)
0
10
20
30
40
0
200400
600
800
1,000
1,200
1,400
1,600
1,800
3QFY12
4QFY12
1QFY13
2QFY13
3QFY13
4QFY13
1QFY14
(%)
(`cr)
Net profit (LHS) yoy change (RHS)
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Tata Steel | 1QFY2014 Result Update
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Exhibit 7:1QFY2014 performance (Consolidated)Consolidated (` cr) 1QFY2014 1QFY2013 yoy % 4QFY13 qoq % FY2013 FY2012 yoy %Net Sales 32,805 33,821 (3.0) 34,650 (5.3) 134,712 132,900 1.4- Consumption of Raw Material 13,179 15,050 (12.4) 15,068 (12.5) 42,062 44,672 (5.8)(% of Net Sales) 40.2 44.5 43.5
- Power& Fuel 1,463 1,391 5.2 1,347 8.7 5,554 4,915 13.0
(% of Net Sales) 4.5 4.1 3.9
- Staff Costs 4,791 4,782 0.2 4,859 (1.4) 18,918 17,229 9.8
(% of Net Sales) 14.6 14.1 14.0
Freight & Handling 1,985 1,736 14.4 2,031 (2.3) 7,434 6,660 11.6
(% of Net Sales) 6.1 5.1 5.9
- Other expenses 7,698 7,459 3.2 6,976 10.4 29,948 25,934 15.5
(% of Net Sales) 23.5 22.1 20.1
Total Expenditure 29,117 30,418 (4.3) 30,282 (3.8) 122,390 120,483 1.6
Operating Profit 3,688 3,403 8.4 4,369 (15.6) 12,321 12,417 (0.8)OPM (%) 11.2 10.1 12.6
Interest 992 969 2.4 995 (0.2) 3,968 4,250 (6.6)
Depreciation 1,403 1,308 7.3 1,470 (4.5) 5,575 4,517 23.4
Other Income 184 289 (36.5) (68) (370.6) 479 1,573 (69.5)
Exceptional Items 18 - - (7,413) - (7,390) 3,362 -
Profit before Tax 1,494 1,416 5.5 (5,576) (126.8) (4,133) 8,585 (148.1)(% of Net Sales) 4.6 4.2 (16.1)
Tax 351 899 (60.9) 1,102 (68.1) 3,229 3,636 (11.2)
(% of PBT) 23.5 63.5 - 7.6
Profit after Tax 1,142 517 120.9 (6,678) (117.1) (7,362) 4,949 -Share of profit (6) 41 (115.2) 10 (162.8) 2,145 1,731 -
Minority interest 3 40 (92.7) 139 (97.9) 903 2,681 (66.3)
Net Income 1,139 598 90.5 (6,529) (117.4) (70,576) 53,898 -(% of Net Sales) - 1.8 - - -
Adjusted net income 1,121 598 87.5 884 26.8 332 2,028 83.6
Source: Company, Angel Research
Exhibit 8:Consolidated 1QFY2014 Actual vs Angel estimates(` cr) Actual Estimate Variation (%)Net sales 32,805 32,728 0.2
EBITDA 3,688 2,926 26.0
EBITDA margin (%) 11.2 8.9 230bp
Adj. net income 1,121 487 130.2
Source: Company, Angel Research
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Tata Steel | 1QFY2014 Result Update
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Result highlights - Consolidated
Net sales declined by 3.0% yoyOn a consolidated basis, the company posted a 3.0% yoy decline in net sales to`32,805cr. TSEs volumes declined by 2.2% yoy to 3.1mn tonne. However, it
reported an EBITDA/tonne of US$44 compared to US$36 in 1QFY2013 due to
better cost control efforts at the European operations. The consolidated EBITDA
increased by 8.4% yoy to `3,688cr. The companys tax expenses declined 60.9%
yoy due to benefits of deferred taxes in the European operations and hence the
adjusted net profit grew by 87.5% yoy`1,121cr.
Exhibit 9:Quarterly performance trend (Tata Steel Europe)(US$ mn) 3QFY12 4QFY12 1QFY13 2QFY13 3QFY13 4QFY13 1QFY14Steel deliveries (MT) 3.4 3.6 3.2 3.4 3.0 3.4 3.1
EBITDA (US $/tonne) (44) 8 36 (2) (26) 33 44
Source: Company, Angel Research
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Tata Steel | 1QFY2014 Result Update
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Investment arguments
Brownfield expansion to aid growthTata Steel has completed its 2.9mn-tonne expansion program at the Jamshedpurplant. The product mix constitutes 2.5mn tonne of hot rolled coil (HRC) and 0.3mn
tonne of slabs. We expect this expansion to contribute ~`2,000cr per annum to
the companys consolidated EBITDA once the new plant reaches optimum capacity
utilization.
Restructuring initiatives at TSE to boost earningsTata Steel has developed a coking coal mine in Mozambique and an iron ore mine
in Canada to enhance integration levels of TSE. These backward integration
initiatives alongside other restricting measures have already resulted in
improvement in profitability during 1QFY2014. Going forward, we believe theeffects of these measures are likely to sustain during the coming quarters.
Odisha project could provide further upsides in the long termTata Steel is setting up a 6mn-tonne integrated steel plant (including cold rolling
mill) in two phases of 3mn tonne. Phase 1 of the 3mn-tonne plant is expected to
be completed by CY2014. This project is expected to have high returns on invested
capital as it would be backed by captive iron ore.
Outlook and valuation
We continue to maintain our positive stance on Tata Steel owing to its buoyant
business outlook, driven by a) higher sales volume in FY2014-15 on the back of
2.9mn tonne brownfield expansion project in Jamshedpur, b) raw-material projects
at Mozambique and Canada and c) restructuring initiatives at TSE. We maintainour Buy rating on the stock with a revised SOTP target price of `313.Exhibit 10:SOTP valuation (FY2015)
EBITDA Multiple EV (` cr)Tata Steel India 13,716 3.0 41,149
CWIP 30,777* 0.7 21,544
TSE 3,257 3.0 9,772Other Asian operations 412 3.0 1,236
Total EV 73,701Debt 57,872
Cash 10,859
Investments 3,720
Market cap 30,408
Target price (`) 313
Source: Angel Research, Note: * stands for Book value
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Tata Steel | 1QFY2014 Result Update
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Exhibit 11:EPS Angel forecast vs consensusYear (`) Angel forecast Bloomberg consensus Variation (%)FY2014E 38.2 25.7 48.5
FY2015E 52.6 35.6 47.7Source: Bloomberg, Angel Research
Exhibit 12:EV/EBITDA
Source: Bloomberg, Angel Research
Exhibit 13:P/E
Source: Bloomberg, Angel Research
0
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(`cr)
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Tata Steel | 1QFY2014 Result Update
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Exhibit 14:P/BV
Source: Bloomberg, Angel Research
Exhibit 15:Recommendation summaryCompanies CMP Target price Reco. Mcap Upside P/E (x) P/BV (x) EV/EBITDA (x) RoE (%) RoCE (%)
(`) (`) (` cr) (%) FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15E FY14E FY15ESAIL 44 - Neutral 18,667 - 7.9 5.9 0.4 0.4 5.8 4.2 5.5 7.1 5.5 7.9
Tata Steel 241 313 Buy 23,421 30 6.3 4.6 0.6 0.6 4.6 4.1 10.4 12.9 9.1 10.6JSW Steel 519 - Neutral 12,859 - 8.3 6.9 0.7 0.6 5.0 4.6 8.5 9.6 8.5 9.0
Source: Company, Angel Research
Company background:
Incorporated in 1907, Tata Steel is the world's tenth largest steel company and the
world's second most geographically diversified steel producer with major
operations in India and Europe. During April 2007, the company acquired Corus
(now Tata Steel Europe), the second largest steel producer in Europe, for a
consideration of US$12bn. Its India operations capacity stands at 9.7mn tonne,
while its European operations capacity stands at 16.0mn tonne.
0
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Profit & Loss Statement (Consolidated)
Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015ETotal operating income 102,393 118,753 132,900 134,712 150,121 160,679% chg (30.5) 16.0 11.9 1.4 11.4 7.0Total expenditure 94,350 102,006 120,483 122,390 134,993 143,293Net raw materials 44,752 53,283 65,745 60,536 63,051 67,485
Other mfg costs 9,601 10,404 11,575 12,988 13,511 14,461
Personnel 16,463 15,840 17,229 18,918 20,243 22,267
Other 23,535 22,479 25,934 29,948 38,189 39,080
EBITDA 8,043 16,747 12,417 12,321 15,128 17,386% chg (55.6) 108.2 (25.9) (0.8) 22.8 14.9
(% of Net sales) 7.9 14.1 9.3 9.1 10.1 10.8
Depreciation 4,492 4,415 4,517 5,575 6,177 6,447
EBIT 3,551 12,332 7,900 6,746 8,951 10,938% chg (74.4) 247.3 (35.9) (14.6) 32.7 22.2
(% of Net sales) 3.5 10.4 5.9 5.0 6.0 6.8
Interest charges 3,022 3,956 4,250 3,968 4,088 4,254
Other income 1,186 680 1,573 479 623 810
(% of PBT) 69.2 7.5 30.1 14.7 11.4 10.8
Share in profit of asso. - - - - - -
Recurring PBT 1,715 9,056 5,223 3,257 5,486 7,495% chg (84.2) 428.1 (42.3) (37.6) 68.4 36.6
Extra. Inc/(Expense) (1,684) 3,046 3,362 (7,390) 0 0
PBT (reported) 31 12,102 8,585 (4,133) 5,486 7,495Tax 2,152 3,246 3,636 3,229 1,646 2,248
(% of PBT) 6,941.4 26.8 42.4 (78.1) 30.0 30.0
PAT (reported) (2,121) 8,856 4,949 (7,362) 3,840 5,246Add: Earnings of asso. 127 66 268 90 104 119
Less: Minority interest (15) 60 173 214 236 259
Extra. Expense/(Inc.) - - - - - -
PAT after MI (reported) (2,009) 8,983 5,390 (7,058) 3,708 5,106ADJ. PAT (1,822) 5,937 2,028 332 3,708 5,106% chg (124.3) (425.9) (65.8) (83.6) 1,016.1 37.7
(% of Net sales) (1.8) 5.0 1.5 0.2 2.5 3.2
Basic EPS (`) (24.9) 99.0 55.5 3.4 38.2 52.6Fully Diluted EPS ( ) (25.0) 92.9 55.5 (72.7) 38.2 52.6% chg (142.3) (472.2) (40.2) (230.9) (152.5) 37.7
Adj. EPS (`) (20.5) 61.9 20.9 3.4 38.2 52.6
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Balance Sheet (Consolidated)
Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015ESOURCES OF FUNDSEquity share capital 887 959 971 971 971 971Reserves & surplus 21,927 34,605 41,645 33,201 36,505 40,990
Shareholders funds 22,814 35,564 42,616 34,172 37,477 41,962Share warrants 17 17 40 21 21 21
Hybrid perpetual securities - 1,500 2,275 2,275 2,275 2,275
Minority interest 884 889 1,091 1,669 1,905 2,165
Total loans 53,307 53,045 49,937 54,972 56,772 57,872Deferred tax liability 1,654 2,188 2,504 3,155 3,155 3,155
Other liabilities 964 5,431 5,605 6,477 6,477 6,477
Total liabilities 79,641 98,634 104,068 102,742 108,082 113,927APPLICATION OF FUNDS - - - -Gross block 97,289 113,986 113,137 134,774 137,274 143,274
Less: Acc. depreciation 60,764 61,592 71,204 79,838 86,015 92,463
Net Block 36,525 36,568 41,932 54,937 51,259 50,812Capital work-in-progress 9,271 15,625 20,196 14,277 24,277 30,777
Goodwill 14,542 15,298 17,355 13,065 13,065 13,065
Investments 5,418 7,847 4,021 3,258 3,258 3,258
Current assets 43,868 53,330 55,410 53,484 56,694 58,733Cash 6,788 10,859 10,799 9,860 7,665 6,887
Loans & advances 6,761 3,547 3,717 4,061 4,061 4,061
Other 30,319 38,867 40,476 38,085 43,490 46,307
Current liabilities 29,983 36,854 42,784 44,164 48,357 50,605Net current assets 13,885 16,476 12,626 9,319 8,337 8,129Mis. exp. not written off - - - - - -
Total assets 79,641 98,634 104,068 102,742 108,082 113,927
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Cash flow statement (Consolidated)
Y/E March (` cr) FY2010 FY2011 FY2012 FY2013 FY2014E FY2015EProfit before tax 31 12,102 8,585 (4,133) 5,486 7,495
Depreciation 4,492 4,415 4,517 5,575 6,177 6,447Change in WC 8,443 (7,769) 362 14,451 (1,212) (569)
Less: Other income 1,186 680 1,573 479 623 810
Direct taxes paid (2,463) (3,235) (3,652) (2,569) (1,646) (2,248)
Cash flow from operations 11,688 6,192 11,385 13,803 9,428 11,934(Inc.)/ Dec. in fixed assets (198,882) (9,336) (10,327) (15,222) (12,500) (12,500)
(Inc.)/ Dec. in investments 194,182 1,752 8,195 (2,901) - -
(Inc.)/ Dec. in loans and adv. - - - - - -
Other income (1,186) (680) (1,573) (479) (623) (810)
Cash flow from investing (5,886) (8,264) (3,705) (18,603) (13,123) (13,310)Issue of equity 2,446 4,557 1,408 262 - -
Inc./(Dec.) in loans (6,261) 5,309 (4,722) 2,653 1,800 1,100
Dividend paid (1,321) (714) (1,350) (1,359) (640) (881)
Others - (3,179) (3,797) (3,602) 340 379
Cash flow from financing (5,135) 5,973 (8,462) (2,045) 1,500 598Inc./(Dec.) in cash 667 3,902 (782) (6,844) (2,195) (777)
Opening cash bal. 6,148 6,770 10,806 10,657 9,695 7,665Closing cash bal. 6,815 10,671 10,657 9,695 7,665 6,887
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Key ratios
Y/E March FY2010 FY2011 FY2012 FY2013 FY2014E FY2015EValuation ratio (x)P/E (on FDEPS) - 3.9 11.5 70.5 6.3 4.6P/CEPS 8.6 1.7 2.4 - 2.4 2.0
P/BV 0.9 0.6 0.5 0.7 0.6 0.6
P/BV (excluding goodwill) 2.6 1.1 0.9 1.1 1.0 0.8
Dividend yield (%) - 5.4 3.2 - 2.7 3.8
EV/Sales 0.6 0.5 0.4 0.5 0.5 0.4
EV/EBITDA 7.8 3.4 4.7 5.3 4.6 4.1
EV/Total assets 0.8 0.6 0.6 0.6 0.6 0.6
Per share data (`)EPS (Basic) (24.9) 99.0 55.5 3.4 38.2 52.6
Adjusted EPS (fully diluted) (20.5) 61.9 20.9 3.4 38.2 52.6
Cash EPS 28.0 139.7 102.0 (15.3) 101.8 118.9
DPS - 12.9 7.7 - 6.6 9.1
Book value 257.3 370.9 438.7 351.8 385.8 432.0
Book value (excluding goodwill) 93.3 211.4 260.1 217.3 251.3 297.5
DuPont analysisEBIT margin 3.5 10.4 5.9 5.0 6.0 6.8
Tax retention ratio (%) (6,841.4) 73.2 57.6 178.1 70.0 70.0
Asset turnover (x) 1.2 1.5 1.7 1.5 1.6 1.6
RoIC (Post-tax) (285.0) 11.8 5.8 13.2 6.6 7.8
Cost of debt (post tax) (412.4) 6.5 6.0 16.8 6.1 5.9
Leverage (x) 2.0 1.2 0.9 1.3 1.3 1.2
Operating RoE (25.1) 18.0 5.6 8.5 7.3 10.1
Returns (%)RoCE (Pre-tax) 5.5 14.6 9.3 7.0 9.1 10.6
Angel RoIC (pre-tax) 22.9 37.6 13.7 29.0 36.1 40.5
RoE (8.0) 30.8 13.8 0.9 10.4 12.9
Turnover ratios (x)Asset turnover (gross block) 1.0 1.1 1.2 1.1 1.1 1.1
Inventory (days) 77 75 74 73 73 73
Receivables (days) 43 40 40 39 39 39
Payables (days) 57 61 53 57 56 55WC cycle (days) 44 20 10 2 0 2
Solvency ratios (x)Net debt to equity 2.0 1.2 0.9 1.3 1.3 1.2
Net debt to EBITDA 5.8 2.5 3.2 3.7 3.2 2.9
Interest coverage 1.2 3.1 1.9 1.7 2.2 2.6
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Disclosure of Interest Statement Tata Steel
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