COMPARATIVE ANALYSIS OF STEEL

COMPANY

SAIL TATA STEEL BHUSHAN

PRESENTED BY:
ROBIN MANDAL(10202070)
TANMAY GHOSH(10202100)
BIJENDRA KUMAR(10202093)
PIYUSH KUMAR(10202088)
ANINDITA MALLIK(10202095)
ANKITA PANDA(10202078)
TATA STEEL
• Tata Steel was established in 1907 by Jamsetji Nusserwanji Tata.

• The Tata Steel Group has always believed that mutual benefit of countries, corporations and communities is the
most effective route to growth.

• Tata Steel has not limited its operations and businesses within India but has built an imposing presence around
the globe as well.

• Tata Steel has introduced brands like -

Tata Steelium (the world's first branded Cold Rolled Steel)
Tata Shaktee (Galvanised Corrugated Sheets)
Tata Tiscon (re-bars),

Mar 2005
Tata Steel Ltd. Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010

Sales 17414.52 22272.14 27437.29 134129.74 150041.71 104269.44

Total assets 18586.41 21408.5 50653.54 125214.54 125407.93 112640.82

 Steel Authority of India Limited
• Steel Authority of India Limited (SAIL) is the leading steel-making company in
India.
• SAIL is also among the four Maharatnas of the country's Central Public Sector
Enterprises.
• SAIL's wide range of long and flat steel products are much in demand in the
domestic as well as the international market.
• SAIL's International Trade Division ( ITD), in New Delhi- an ISO 9001:2000
accredited unit of CMO, undertakes exports of Mild Steel products and Pig Iron
from SAIL’s five integrated steel plants

Steel Authority Of India Ltd. Mar 2005 Mar 2006 Mar 2007 Mar 2008 Mar 2009 Mar 2010

Sales 33582.18 32673.08 39377.59 45780.03 48947.16 44133.49

Total assets 28879.23 29847.88 34904.97 42413.11 56030.42 70614.44

 BHUSHAN STEEL
• Bhushan Steel Limited is an India-based company. The Company is engaged in the
steel business.
• During the fiscal year ended March 31, 2010 (fiscal 2010), the Company
manufactured 804,231 million tons of cold-rolled steel strips/sheets/coils; 386,120
million tons of cold-rolled galvanized steel strips/sheets/coils; 76,393 million tons
of color coated galvanized steel strips/sheets/coils, and 72,916 million tons of
precision tubes.
• The Company has manufacturing plants in Ghaziabad, Uttar Pradesh; Dhenkanal,
Orissa, and Khopoli, Maharashtra

Bhushan Steel Ltd. Mar 2008 Mar 2009 Mar 2010

Sales 4672.74 5413.32 5995.08

Total assets 8805.55 12157.74 17398.99

Operating leverage:-Operating leverage is highest in companies that
have a high proportion of fixed operating costs in relation to variable
operating costs. This kind of company uses more fixed assets in the
operation of the company.
DOL: CONTRIBUTION /EBIT

25
20
15
10
5
0
2005 2006 2007 2008 2009 2010
Financing leverage:- A financing leverage summarizes the affect a
particular amount of financial leverage has on a company's earnings per
share (EPS).
The higher the degree of financial leverage, the more volatile EPS will
be, all other things remaining the same
DFL=EBIT /PBT

1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2005 2006 2007 2008 2009 2010
Degree of Combined Leverage: By combining the degree of
operating leverage with the degree of financial leverage we obtain the
degree of total leverage (DTL). If a firm has a high amount of operating
leverage and financial leverage, a small change in sales will lead to a
large variability in EPS.

 Formula 11.20
45
40
35
30
25
20
15
10
5
0
2005 2006 2007 2008 2009 2010
QUICK RATIO:- The objective of this ratio is to find the ability of the
company to meet its short term obligation as and when due without
relying on the realization of stock.
QUICK RATIO= QUICK ASSETS /CURRENT LIABILTIES.

3.5
3
2.5
2
1.5
1
0.5
0
2005 2006 2007 2008 2009 2010
Return on Asset : This is a measure of profitability from a given level of
investment. It is an excellent indicator of overall performance of a
company.
ROA = PAT/ Average total asset

0.3
0.25
0.2
0.15
0.1
0.05
0
2005 2006 2007 2008 2009 2010
Return on equity: This is a measure of profitability from the
standpoint of the company’s shareholders. It measures the efficiency
with which shareholders fund are employed.
ROE = PAT/Average shareholder’s equity
25

20

15

10

0
2005 2006 2007 2008 2009 2010
-5
Fixed Asset Turnover : This ratio shows the efficiency of utilizing fixed assets.
Fixed Assets Turnover = Sales/ Net Fixed Assets
3.5

2.5

1.5

0.5

0
2005 2006 2007 2008 2009 2010
Net profit margin : Net profit is obtained when operating expenses,
interest, and taxes are subtracted from the gross profit.
Net Profit Margin= Pat/ Sales
25

20

15

10

0
2005 2006 2007 2008 2009 2010
-5
Cost of debt :The effective rate that a company pays on its current debt.

14

12

10

0
2005 2006 2007 2008 2009 2010
Cost of equity :A firm's cost of equity represents the compensation
that the market demands in exchange for owning the asset and bearing
the risk of ownership.

25

20

15

10

0
2005 2006 2007 2008 2009 2010
-5