Comparison between Tata Steel and JSW Steel

Below is a comparison of the key numbers of Tata Steel and JSW Steel.

	Standalone – Tata Steel					Consolidated – Tata Steel					JSW Steel
	2018	2019	2020	2021	2022	2018	2019	2020	2021	2022	2018	2019	2020	2021	2022
Revenue	6,05,194	7,06,109	6,04,360	8,41,329	12,90,214	12,41,097	16,73,017	14,89,717	15,64,774	24,39,592	7,19,330	8,47,570	7,33,260	7,98,390	14,63,710
Production	13	13	14	14	15.5	24	24	29	29	30.5	16.3	16.7	16.1	16.1	27.0
Revenue Per tonne	46,553	54,316	43,169	60,095	83,240	51,712.37	69,709.05	51,369.56	53,957.72	79,986.61	44,130.67	50,752.69	45,544.10	49,589.44	54,211.48

Raw Materials	1,75,248	2,16,481	1,89,701	2,24,459	3,93,460	4,61,370	6,72,091	6,40,970	5,51,008	9,10,766	3,87,810	4,37,960	3,90,000	3,28,560	6,28,710
%	29%	31%	31%	27%	30%	37%	40%	43%	35%	37%
Gross Margin	71%	69%	69%	73%	70%	63%	60%	57%	65%	63%	46%	48%	47%	59%	57%

Power & Fuel	29,252	30,333	31,044	37,463	46,637	44,404	53,166	63,439	57,084	80,283	56,970	70,530	62,720	59,850	1,12,890
%	5%	4%	5%	4%	4%	4%	3%	4%	4%	3%	8%	8%	9%	7%	8%
Personnel Expenses	48,289	51,311	50,366	57,419	63,658	1,69,699	1,93,560	1,91,522	1,99,088	2,32,641	18,430	24,890	28,390	25,060	34,930
%	8%	7%	8%	7%	5%	14%	12%	13%	13%	10%	3%	3%	4%	3%	2%
Other Manufacturing expense	1,04,435	1,18,643	1,25,023	1,32,514	1,84,880	1,86,062	2,29,255	2,36,832	2,42,286	3,81,454	87,130	1,04,300	1,02,430	1,62,470	2,97,260
%	17%	17%	21%	16%	14%	15%	14%	16%	15%	16%	12%	12%	14%	20%	20%
General & Admin expense	29,604	47,123	33,844	51,288	53,322	64,252	1,45,236	1,05,866	96,371	1,65,635	2,130	2,870	4,140	3,580	4,500
%	5%	7%	6%	6%	4%	5%	9%	7%	6%	7%	0%	0%	1%	0%	0%
Selling and Distribution Expense	42,961	45,083	42,271	55,426	69,203	82,054	86,485	93,614	96,577	1,24,642	700	510	460	560	1,180
%	7%	6%	7%	7%	5%	7%	5%	6%	6%	5%
Miscallenous Expense	7,702	5,060	5,874	2,969	10,545	20,629	11,348	7,336	19,806	14,149	15,780	22,890	29,090	21,420	30,180
%	1%	1%	1%	0%	1%	2%	1%	0%	1%	1%	570	370	240	470	790

EBITDA	1,53,225	1,97,618	1,31,880	2,58,025	4,86,718	2,03,028	2,79,548	1,55,040	2,87,386	6,06,001	1,47,940	1,89,520	1,18,730	2,00,370	3,90,070
Margin	25%	28%	22%	31%	38%	16%	17%	10%	18%	25%	21%	22%	16%	25%	27%
EBITDA Per tonne	11,787	15,201	9,420	18,430	31,401	8,459	11,648	5,346	9,910	19,869	9076	11349	7375	12445	14447

Depreciation	37,275	38,030	39,201	54,693	54,637	57,417	75,793	87,077	92,336	91,009	33,870	40,410	42,460	46,790	60,010
%	6%	5%	6%	7%	4%	5%	5%	6%	6%	4%	5%	5%	6%	6%	4%
Depreciation per tonne	2,867	2,925	2,800	3,907	3,525	2,392	3,158	3,003	3,184	2,984	2,078	2,420	2,637	2,906	2,223

Interest	28,106	28,236	30,310	45,410	27,921	54,547	77,419	75,807	76,067	54,622	37,010	39,170	42,650	39,570	49,680
Debt	2,97,862	3,09,447	4,22,302	4,25,298	4,09,006	9,41,350	10,23,116	11,73,366	9,41,248	8,02,687	4,09,240	5,28,790	6,59,310	6,91,640	7,33,430
Interest Rate effective	9%	9%	7%	11%	7%	6%	8%	6%	8%	7%	9%	7%	6%	6%	7%
										1790.885246
PBT	96,679	1,55,418	66,434	1,65,473	4,18,680	1,01,170	1,40,568	10,432	1,27,938	4,68,219	78,730	1,11,980	39,080	1,20,970	2,95,690

Tax	24,687	56,941	-1,328	15,319	1,10,795	33,923	67,088	-25,529	56,539	84,776	15,380	36,440	-9,060	41,420	88,070

PAT	71,992	98,477	67,762	1,50,154	3,07,885	67,247	73,480	35,961	71,399	3,83,443	63,350	75,540	48,140	79,550	2,07,620
PAT Per tonne	5,538	7,575	4,840	10,725	19,864	2,802	3,062	1,240	2,462	12,572	3,887	4,523	2,990	4,941	7,690

Capex	28,582	32,843	38,598	3,39,316	23,208	1,41,419	3,29,842	2,26,189	1,68,923	38,125	26,040	87,370	33,960	69,760	4,13,210

Equity	6,15,148	7,04,547	7,45,631	9,44,101	12,54,338	5,95,321	6,90,145	7,38,879	7,67,335	11,70,985	2,75,340	3,43,450	3,60,240	4,49,910	6,85,350

Debt to Equity	48%	44%	57%	45%	33%	1.6	1.5	1.6	1.2	0.7	1.49	1.54	1.83	1.54	1.07
Interest coverage ratio	5.5	7.0	4.4	5.7	17.4	3.7	3.6	2.0	3.8	11.1	3.1	3.8	1.8	3.9	6.6

ROE	12%	14%	9%	16%	25%	11%	11%	5%	9%	33%	23%	22%	13%	18%	30%
ROCE	13%	16%	8%	15%	26%	9%	12%	4%	11%	26%	17%	17%	7%	13%	23%

Working capital to Sales	3%	-2%	1%	2%	1%	16%	13%	12%	10%	10%	2%	7%	0%	4%	7%

OCF	1,25,725.70	1,27,715.40	1,09,074.10	1,50,117.70	1,66,156.70	-55659.2	87575	122900.7	414267.6	331982.6	87480	78920	163530	137870	163130
OCF/ Sales	21%	18%	18%	18%	13%	-4%	5%	8%	26%	14%	12%	9%	22%	17%	11%
OCF/ PAT	175%	130%	161%	100%	54%	-83%	119%	342%	580%	87%	138%	104%	340%	173%	79%
Asset Turnover	0.8	0.9	0.8	0.8	1.2	1.1	1.1	0.9	0.9	1.5	1.0	1.1	0.9	0.9	1.1

Though both companies do better than the other in a few parameters, overall Tata steel standalone has the best numbers in most parameters. Tata steel also owns steel mines which ensures they have a higher gross margin. But the ROCE for JSW steel is higher mainly due to lower capital employed.

Steel making is a complex process with very high capex requirements which ensures that there are significant barriers to entry.

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