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

[email protected]

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)


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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August 14, 2013 3

Exhibit 2:Standalone realization down 13.4% yoy


Exhibit 3: Standalone top-line grew by 6.1% yoy


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


Exhibit 5:Standalone EBITDA margin stood at 30.0%


Exhibit 6:Standalone net profit was flat yoy


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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August 14, 2013 4

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


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


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August 14, 2013 5

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


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August 14, 2013 6

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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August 14, 2013 7

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


0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

Apr-

08

Jul-08

Oc

t-08

Jan-0

9

Apr-

09

Jul-09

Oc

t-09

Jan-1

0

Apr-

10

Jul-10

Oc

t-10

Jan-1

1

Apr-

11

Jul-11

Oc

t-11

Jan-1

2

Apr-

12

Jul-12

Oc

t-12

Jan-1

3

Apr-

13

Jul-13

2x 4x 6x 8x 10x

(`cr)

(200)

0

200

400

600

800

1,000

Apr-

08

Jul-08

Oc

t-08

Jan-0

9

Apr-

09

Jul-09

Oc

t-09

Jan-1

0

Apr-

10

Jul-10

Oc

t-10

Jan-1

1

Apr-

11

Jul-11

Oc

t-11

Jan-1

2

Apr-

12

Jul-12

Oc

t-12

Jan-1

3

Apr-

13

Jul-13

(`)

4x 8x 12x 16x

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August 14, 2013 8

Exhibit 14:P/BV


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


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

100

200

300

400

500

600

700

800

900

1,000

Apr-

08

Jul-08

Oc

t-08

Jan-0

9

Apr-

09

Jul-09

Oc

t-09

Jan-1

0

Apr-

10

Jul-10

Oc

t-10

Jan-1

1

Apr-

11

Jul-11

Oc

t-11

Jan-1

2

Apr-

12

Jul-12

Oc

t-12

Jan-1

3

Apr-

13

Jul-13

(`)

0.2x 0.8x 1.4x 2.0x

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August 14, 2013 9

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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August 14, 2013 10

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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August 14, 2013 11

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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August 14, 2013 12

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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tata steel, 1q fy 2014

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