Name

Aditya Aggarwal
Naveen
Tanvi
Nitin Ganapule
Shruti Mehta

PRN

11020841151
11020841110

Group 3 - Assignment 1
Industry
Metal,Metal Products & Mining

nt 1
Company Assigned
Coal India Ltd.
Hindalco Industries Ltd
Jindal Steel & Powers Ltd.
Sterlite Industries.
Tata Steel Limited.

Sterli
Balance Sheet

------------------- in Rs. Cr. ------------------Mar '11

Mar '10

Sources Of Funds
Total Share Capital

336.12

168.08

Equity Share Capital

336.12

168.08

Share Application Money

Preference Share Capital

22,873.03

22,067.40

Reserves
Revaluation Reserves

19.75

32.6

23,228.90

22,268.08

Secured Loans

1,569.44

100

Unsecured Loans

4,191.59

5,222.20

Total Debt

5,761.03

5,322.20

28,989.93

27,590.28

Application Of Funds
Gross Block

2,972.76

2,981.87

Less: Accum. Depreciation

1,505.55

1,421.05

Net Block

1,467.21

1,560.82

720.35

265.81

Investments

6,237.85

10,984.17

Inventories
Sundry Debtors

3,189.87
797.98

1,994.04
385.11

72.02

89.9

Total Current Assets

4,059.87

2,469.05

Loans and Advances

Fixed Deposits

18,984.45
1,819.26

12,258.68
2,195.01

Total CA, Loans & Advances

24,863.58

16,922.74

0
3,665.83

0
1,477.24

633.23

666.02

4,299.06

2,143.26

Net Current Assets

Miscellaneous Expenses

20,564.52
0

14,779.48
0

Total Assets

28,989.93

27,590.28

Contingent Liabilities

18,727.22

9,957.57

69.05

264.58

Networth

Total Liabilities

Capital Work in Progress

Cash and Bank Balance

Deffered Credit
Total Current Liabilities
Provisions
Total CL & Provisions

Book Value (Rs)

Cash Flow

------------------- in Rs. Cr. -------------------

Mar '11

Mar '10

1874.28

947.8

265.11

-128.05

-436.53

-8623.91

Net Cash (used in)/from Financing Activities

153.55

8780.08

Net (decrease)/increase In Cash and Cash Equivalents

-17.87

28.12

95.96
78.09

67.84
95.96

Net Profit Before Tax

Net Cash From Operating Activities
Net Cash (used in)/from
Investing Activities

Opening Cash & Cash Equivalents

Closing Cash & Cash Equivalents

Sterlite Industries (India)

Competitor
Profit & Loss account

Hind Zinc

--------- in Rs. Cr. ------------------Mar '09

Mar '08

Mar '11

141.7

141.7

845.06

Income
Sales Turnover

141.7

141.7

845.06

Excise Duty

Net Sales

Other Income

13,897.32

13,014.60

21,688.13

Stock Adjustments

0.82

8.72

Total Income

14,039.84

13,165.02

22,533.19

303.8

572.05

Expenditure
Raw Materials

3,526.24

2,685.76

0.39

Power & Fuel Cost

3,830.04

3,257.81

0.39

Employee Cost

17,869.88

16,422.83

22,533.58

Other Manufacturing Expenses

Selling and Admin Expenses

2,889.07

2,765.34

9,802.33

Miscellaneous Expenses
Preoperative Exp Capitalised

1,275.41

1,109.85

2,548.12

Total Expenses

1,613.66

1,655.49

7,254.21

32.16

52.49

875.23

11,661.85

12,357.03

9,334.59

1,406.90
526.89

2,305.99
831.88

762.38
208.89

61.5

45.67

77.91

1,995.29

3,183.54

1,049.18

Other Written Off

2,872.62
1,676.34

1,261.11
31.31

991.82
5,555.00

Profit Before Tax

Extra-ordinary items

6,544.25

4,475.96

7,596.00

PBT (Post Extra-ord Items)

0
1,306.62

0
1,149.72

0
1,959.37

Tax

675.42

968.42

567.08

Total Value Addition

1,982.04

2,118.14

2,526.45

Preference Dividend

4,562.21
0

2,357.82
0

5,069.55
0

Equity Dividend
Corporate Dividend Tax

17,869.88

16,422.83

22,533.58

6,696.82

2,825.95

1,736.37

198.15

185.69

53.33

--------- in Rs. Cr. -------------------

Operating Profit
PBDIT
Interest
PBDT
Depreciation

Reported Net Profit

Per share data (annualised)

Shares in issue (lakhs)
Earning Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)
MPS(rs)
Dividend Per Share

Mar '09

Mar '08

1339.15

1104.47

1976.24

855.42

-1822.17

-9397.55

-163.21

8387.04

-9.14

-155.09

76.98
67.84

232.07
76.98

Competitor
------------------- in Rs. Cr. -------------------

Hind Zinc

Mar '11

Mar '10

Mar '09

Mar '08

Mar '11

16,253.88

13,676.47

12,277.74

13,451.59

10,489.82

961.31

561.59

729.36

778.01

581.89

15,292.57

13,114.88

11,548.38

12,673.58

9,907.93

1,611.93

821.99

799.32

546.46

964.65

296

339.79

-316.54

130.8

155.64

17,200.50

14,276.66

12,031.16

13,350.84

11,028.22

14,114.95

12,178.58

9,618.17

11,303.70

1,188.40

370.14

351.12

339.09

295.53

1,022.60

88.57

77.28

82.28

66.18

510.78

133.91
131.54

108.96
150.11

116.34
116.97

90.55
153.54

1,436.73
274.73

61.92
0

59.72
0

53.9
0

48.42
0

158.48
-14.05

14,901.03

12,925.77

10,326.75

11,957.92

4,577.67

687.54
2,299.47

528.9
1,350.89

905.09
1,704.41

846.46
1,392.92

5,485.90
6,450.55

273.91
2,025.56

256.44
1,094.45

203.92
1,500.49

164.45
1,228.47

18.28
6,432.27

152.65

150.64

166.18

138.98

474.74

1,872.91
7.36

943.81
-32.27

1,334.31
50.84

1,089.49
14.98

5,957.53
-16.28

1,880.27

911.54

1,385.15

1,104.47

5,941.25

460.56

133.58

148.72

152.84

1,040.76

1,419.71

831.5

1,236.43

951.63

4,900.49

786.08

747.19

708.58

654.22

3,389.27

369.73
59.98

315.15
52.34

247.97
42.15

283.4
48.16

422.53
68.55

33,612.08

8,404.00

7,084.94

7,084.94

42,253.19

4.22

9.89

17.45

13.43

11.6

110

187.5

175

200

50

69.05

264.58

198.15

185.69

53.33

173.4

211.88

88.91

178.43

1.1

3.75

3.5

sed)

Sterlite Industries is India's largest non-ferrous metals and mining company and on

Ratios
Net Profit Margin
Asset Turnover
ROA
ROE
Current Ratio
Quick Ratio
Debtor Turnover Ratio
Inventory Turnover
Debt Equity Ratio
Interest Cover
P/E Ratio
Dividend Yield
Price to Book
ROCE
Fixed assets Turnover

Peer Comparison
Company
Sterlite Ind
Hind Zinc

Mar '11
Formula
Net Profit/Net Sales
9.28%
Sales Turnover/TA - Inv - FD - Total CL, Prov 1.12
Net Profit/Total Assets - Inv - FD - Total CL, Prov
9.82%
Net Profit/Avg Net Worth
6.24%
CA/CL
1.11
CA-Inventory/CL
0.237
Net Credit Sales/ Avg Debtors
25.85
Sales/Inventory
5.10
Debt/Equity
0.25
PBIT/Interest Expense
7.838
MPS/EPS
41.09
DPS/MPS
0.63%
MPS/BV
2.511
EBIT/(TA-CL)
8.48%
Net Sales/Net Block
10.423

Market Cap

6.34%
1.85
11.22%
4.58%
1.67
0.322
28.76
6.86
0.24
4.680
21.42
1.77%
0.801
4.60%
8.403

Rs in Cr.
Net Sales
Net Profit
34502.8
18091.58
1657.48
51929.17
11412.39
5526.04

March '11
Revenue %(Y-o-Y)
Operating Income %(Y-o-Y)
Net Income %(Y-o-Y)

Cap Spending
Free Cash Flow
Working Capital
Financial Leverage (Average)

Efficiency
Days Sales Outstanding
Days Inventory
Payables Period
Cash Conversion Cycle

Mar '10

March '10
23.51
25.52
24.54

15.42
24.93
21.83

-5,001
7,751
25,637
1.82

-6,187
-4,762
27,621
1.66

March '11

March '10
22.99
66.32
70.65
18.67

10.18
54.62
75.83
-11.03

Receivables Turnover

15.87

ferrous metals and mining company and one of the fastest growing private sector companies.

35.86

Horizontal Analysis
Mar '09

% change in '11

10.71%
5.50
55.37%
9.09%
1.53
0.450
17.00
8.73
0.27
7.543
5.10
3.94%
0.449
9.29%
7.157

46.43%
-39.07%
-12.46%
36.26%
-33.74%
-26.19%
-10.11%
-25.71%
3.77%
67.46%
91.80%
-64.16%
213.58%
84.44%
24.04%

Total Assets
30056.37
26881.26

Analysis
-40.78% Net profit margin is LOW compared to industry standards & it's been
-66.43% Asset Turnover is decreasing constantly, hence firm's efficiency at us
-79.73% ROA has been lesser than industry in last two years, hence the earni
-49.61%
9.45% CR is approx constant and above 1, so firm has less liquidity risk
-28.59% QR has been decreasing which means higher risk
69.20% DTR is high compared to industry, it's beneficial for the firm since its
-21.41% Inv Turnover is above industry which means that firm is having highe
-12.39% DE is constant & very less. Firm is not aggressive to finance its growt
-37.95% Interest cover is in line with industry & it is also HIGH so firm is not b
320.47% Higher PE, investors expect higher earnings growth compared to oth
-55.04% Dividend ield has been constantly decreasing so the cash flows per r
78.47% PB ratio has been increasing & it can also mean that stock has been o
-50.51% ROCE has been lower than the interest rates hence the shareholder'
17.41% HIGH FA Turnover means that co. has been more effective to use FA

% change in '10

Analysis
Despite Strelite being clear market leader in terms of revenues, total assets & Net sales, the net pro
compared to peers. This is due to high operating costs, export costs since it does have operations in
Rupee depreciation also has reduced the overal profits.

March '09

-14.79 Revenues from copper business rose by 8% to Rs. 12,658 crore in 2007- 08. However, despite major re
-43.14 the cost of production, the combined effect of a 50% fall in TC/RCs, over 11% appreciation in the rupee
US dollar and increasing fuel prices led to a 30% reduction in operating profits (EBIT) to Rs. 998
-24.35

Analysis
-4,110
3,709 The firm needs large amount of working capital for its daily operations. This is working capital
16,225 is financed by short term loans & some long term loans. Firm has free cash flows which are
1.79
used for financing the WC. The financial leverage is constant throughout the period.

March '09

Analysis
19.72
64.39
110.41
-26.3

Cash conversion cycle for the firm is good compared to the sector & the peers. All other
efficiency parameters are in line with sector. The shortfall in cash is covered by working
capital.

18.51

Cash conversion cycle for the firm is good compared to the sector & the peers. All other
efficiency parameters are in line with sector. The shortfall in cash is covered by working
capital.

Analysis
pared to industry standards & it's been decreasing
onstantly, hence firm's efficiency at using assets in generating profits has been reducing.
stry in last two years, hence the earnings generated were less compared to invested capital

ve 1, so firm has less liquidity risk

means higher risk
try, it's beneficial for the firm since its been operating from cash basis.
which means that firm is having higher sales but overall to the firm less sales compared to prev ears
m is not aggressive to finance its growth from debt.
dustry & it is also HIGH so firm is not burdened by debt expense.
gher earnings growth compared to other companies.
ntly decreasing so the cash flows per rupee invested has been decreasing
it can also mean that stock has been overpriced.
interest rates hence the shareholder's earnings have been reducing.
co. has been more effective to use FA to generate revenues.

% Chan

es, total assets & Net sales, the net profit is less
costs since it does have operations in overseas.
ed the overal profits.

rations. This is working capital

has free cash flows which are
nt throughout the period.

ector & the peers. All other

cash is covered by working

300.00%
250.00%
200.00%
Axis Title

n 2007- 08. However, despite major reductions in

Cs, over 11% appreciation in the rupee against the
n in operating profits (EBIT) to Rs. 998 crore.

350.00%

150.00%
100.00%
50.00%
0.00%
-50.00%
-100.00%

Profit
Asset
Margin Turnover
1

% change in '11 46.43%

ROA

ROE

Current
Ratio

36.26%

-33.74%

-39.07% -12.46%

% change in '10 -40.78% -66.43% -79.73% -49.61%

9.45%

ector & the peers. All other

cash is covered by working

% Changes in Ratios
Sl
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Current
Ratio

Quick
Ratio

DTR

Inv
Interest
Dividend Price to
DE Ratio
P/E Ratio
Turnover
Cover
Yield
Book
8

-33.74% -26.19% -10.11% -25.71%

9.45%

-28.59%

69.20%

Ratios
% change in%'11
change in '10
Profit Margin 46.43% -40.78%
Asset Turnover-39.07% -66.43%
ROA
-12.46% -79.73%
ROE
36.26% -49.61%
Current Ratio -33.74%
9.45%
Quick Ratio -26.19% -28.59%
DTR
-10.11%
69.20%
Inv Turnover -25.71% -21.41%
DE Ratio
3.77% -12.39%
Interest Cover 67.46% -37.95%
P/E Ratio
91.80% 320.47%
Dividend Yield-64.16% -55.04%
Price to Book213.58%
78.47%
ROCE
84.44% -50.51%
FA Turnover 24.04%
17.41%

10

11

3.77%

67.46%

91.80%

12

13

-64.16% 213.58%

-21.41% -12.39% -37.95% 320.47% -55.04%

78.47%

ROCE

FA
Turnover

14

15

84.44%

24.04%

-50.51%

17.41%