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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