SUBMITTED BY:

PROJECT REPORT
SAKET SANE
ASHWANI KUMAR Capital Structure Analysis
NEEL TERDAL
RISHIKA RAJ
AASTHA POKHARNA
| A wise person should have money in their head,
UNDER THE GUIDENCE OF
but not in their heart. |
-Jonathan Swift
Dr. SANGITA CHOUDHARY

DESIGNED BY: SAKET SANE

CAPITAL STRUCTURE ANALYSIS OF TATA STEEL

A PROJECT REPORT
Submitted by

Saket Sane
Ashwani Kumar
Rishika Raj
Neel Terdal
Aastha Pokharna

In partial fulfillment for the completion of the course

Named

MANAGING FINANCIAL RESOURCES

In

BML MUNJAL UNIVERSITY: Gurgaon

March 2016

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 ABSTRACT

Tata Steel is an Indian multi-national steel-making company headquartered in Mumbai,

Maharashtra, India. Tata Steel has manufacturing operations in 26 countries, including Australia,
China, India, the Netherlands, Singapore, Thailand and the United Kingdom, and employs around
80,500 people. In the recent years the company has grown manifold due to its expansion strategy
and sustainability. The market for steel is also growing and the industry has been a little over the
edge in delivering it to the world. Following report is a detailed financial analysis of Tata Steel
standalone and how the trends of the dividend share, debt & equity have been for the company.
The analysis is done for ten years from the fiscal year 2005-2006 to 2014-2015. A detailed analysis
of how Tata Steel has been maintaining its sustainability and satisfying its shareholders has been
given below. The report emphasizes on debt and equity over the last decade of the company and
how the company has managed to be the top player internationally in steel-making industry.

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 TABLE OF CONTENT

1. INTRODUCTION............................................................................................................................... 5
1.1 Indian Steel Sector ............................................................................................................................ 5
1.1.1 Background ................................................................................................................................ 5
1.1.2 Current Scenario ........................................................................................................................ 5
1.1.3 Consumption .............................................................................................................................. 5
1.1.4 Industry Structure ..................................................................................................................... 6
1.2 Company Profile ............................................................................................................................... 6
2. KEY TERMS....................................................................................................................................... 7
3. TRENDS .............................................................................................................................................. 8
3.1 Equity Capital Trends:- ................................................................................................................... 8
3.2 Debt Capital Trends:- ..................................................................................................................... 10
4. ANALYSIS ........................................................................................................................................ 11
4.1 Equity Capital ................................................................................................................................. 11
4.2 Debt Capital..................................................................................................................................... 12
4.3 Debt capacity ................................................................................................................................... 14
5. CONCLUSION ................................................................................................................................. 15
6. REFERENCES .................................................................................................................................. 16
7. ANNEXURE ...................................................................................................................................... 17

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 1. INTRODUCTION

1.1 Indian Steel Sector

1.1.1 Background
The Indian iron and steel industry is nearly a century old, with Tata Iron & Steel Co (Tata Steel)
as the first integrated steel plant to be set up in 1907. It was the first core sector to be completely
freed from the licensing regime (in 1990-91) and the pricing and distribution controls. The steel
industry is expanding worldwide. For a number of years it has been benefiting from the
exceptionally buoyant Asian economies (mainly India and China). The economic modernization
processes in these countries are driving the sharp rise in demand for steel.

The New Industrial policy adopted by the Government of India has opened up the iron and steel
sector for private investment by removing it from the list of industries reserved for public sector
and exempting it from compulsory licensing. Imports of foreign technology as well as foreign
direct investment are freely permitted up to certain limits under an automatic route. This, along
with the other initiatives taken by the Government has given a definite impetus for entry,
participation, and growth of the private sector in the steel industry. While the existing units are
being modernized/ expanded, a large number of new/green-field steel plants have also come up
in different parts of the country based on modern, cost effective, state of-the-art technologies.

1.1.2 Current Scenario

Steel production capacity of the country expanded from about 75 million tonnes per annum
(MTPA) in 2009-10 to about 101.02 million tonnes (MT) in 2013-14, when output was 81.7 MT.
In 2014-15, production for sale of total finished steel (alloy + non alloy) was 91.46 mt, a growth
of 4.3% over 2013-14.
India produced 7.07 MT of steel in January 2015 reporting the fourth highest production level
globally which was 1.7 per cent higher than the country's steel production in the same month last
year.
The steel sector in India contributes nearly two per cent of the country’s gross domestic product
(GDP) and employs over 600,000 people. The per capita consumption of total finished steel in
the country has risen from 51 Kg in 2009-10 to about 60 Kg in 2013-14.

1.1.3 Consumption

Currently, the steel consumption in India is second only to China. However, with the steel
consumption in China expected to moderate at around 3%, India is likely to emerge as the fastest
growing steel consuming nation. Further, India's current per capita finished steel consumption at
52 kg is well below the world average of 203 kg. With rising income levels expected to make steel

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increasingly affordable, there is vast scope for increasing per capita consumption of steel. Being a
core sector, steel industry tracks the overall economic growth in the long term. Also, steel demand,
being derived from other sectors like automobiles, consumer durables and infrastructure, its
fortune is dependent on the growth of these user industries.

The Indian steel sector enjoys advantages of domestic availability of raw materials and cheap
labour. Iron ore is also available in abundant quantities. This provides major cost advantage to
the domestic steel industry.

1.1.4 Industry Structure

Indian Iron and steel Industry can be divided into two main sectors Public sector and Private
sector. Further on the basis of routes of production, the Indian steel industry can be divided into
two types of producers.

 Integrated producers

Those that convert iron ore into steel. There are three major integrated steel players in India,
namely Steel Authority of India Limited (SAIL), Tata Iron and Steel Company Limited (TISCO)
and Rashtriya Ispat Nigam Limited (RINL).

 Secondary producers

These are the mini steel plants (MSPs), which make steel by melting scrap or sponge iron or a
mixture of the two. Essar Steel, Ispat Industries, and Lloyd’s steel are the largest producers of
steel through the secondary route.

1.2 Company Profile

Tata Steel was established in 1907 as Asia's first integrated private sector steel company, Tata
Steel Group is among the top-ten global steel companies with an annual crude steel capacity of
over 29 million tonnes per annum. It is now the world's second-most geographically-diversified
steel producer, with operations in 26 countries and a commercial presence in over 50 countries.
The Tata Steel Group, with a turnover of Rs. 1, 48,614 crores in FY 14, has over 80,000 employees
across five continents and is a Fortune 500 company.
Tata Steel’s larger production facilities comprise those in India, the UK, the Netherlands, Thailand,
Singapore, China and Australia. Operating companies within the Group include Tata Steel Limited
(India), Tata Steel Europe Limited (formerly Corus), Tata Steel Singapore and Tata Steel Thailand.

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 2. KEY TERMS
Acquisition: An acquisition is a corporate move of a company to buy out most, if not all, of the
target company's ownership stakes so as to assume control of the target firm.
Capital structure: The capital structure is how a corporation uses different sources of funds i.e.
debt and equity to finance its operations. Debt being in the form of bond issues or long-term
notes payable, while equity as common stock, preferred stock or retained earnings.
Common Stock: A common stock is a security that represent ownership in a corporation.
Common stockholder are on the bottom of the priority ladder for ownership structure.
Debt capital: A Debt capital is the capital that a business raises by taking out a loan and that is
repaid in some future date.
Debt capacity: Debt capacity is the quantum to which an organization can borrow, beyond
which raising debt would no longer increase the corporate value.
Equity capital: Capital received as interest, in the ownership of a business; Capital (as stock or
surplus earnings) that is free of debt.
Interest coverage ratio: The interest coverage ratio is the measure of how easily a company
can pay interest on outstanding debt. The interest coverage ratio is calculated by dividing a
company's earnings before interest and taxes (EBIT) during a given period by the amount a
company must pay in interest on its debts during the same period.
Interest Coverage Ratio = EBIT/Interest Expense
Preferred Stock: A preferred stock is a security that represent ownership in a corporation that
has a higher claim on its assets and earnings than common stock. Preferred shares generally have
a dividend that must be paid out before dividends to common shareholders.
Retained Earnings: Retained earnings refers to the portion of net income of a corporation that is
retained by the corporation rather than distributed to shareholders as dividends.

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 3. TRENDS
3.1 Debt Equity Ratio:-

Financial Year Debt Equity Ratio

2014-2015 0.39
2014-2013 0.43
2013-2012 0.47
2012-2011 0.45
2011-2010 0.56
2010-2009 0.69
2009-2008 1.08
2008-2007 1.34
2007-2006 0.67
2006-2005 0.58

DEBT EQUITY RATIO

Debt Equity Ratio

1.6
1.34
1.4
1.2 1.08

1
0.8 0.69 0.67
0.56 0.58
0.6 0.43 0.47 0.45
0.39
0.4
0.2
0
2014- 2014- 2013- 2012- 2011- 2010- 2009- 2008- 2007- 2006-
2015 2013 2012 2011 2010 2009 2008 2007 2006 2005

The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of
shareholders' equity and debt used to finance a company's assets.
The level of debt raised is highest in the year 2007-08 because it was need of capital as it acquired
Corus. The financing for the Corus acquisition has been completed with all the recourse bridge
funding contracted for the acquisition having been paid off through a mix of debt, equity and
internal accruals and the non-recourse funding syndicated during the year.

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In year 2008-09 the increase was primarily on account of raising of new loans to the tune of
US$2.07 billion, during the year in Tata Steel India, to fund growth projects and to ensure an
adequate liquidity buffer in the wake of global liquidity crisis.
In the second half of FY 09 and the first quarter of FY 10, the Company had focused on raising
additional debt in order to maintain a liquidity buffer given the uncertain nature of the steel
markets. From the period 2012 the company has more debt as compared to the shareholders equity.
3.2 Equity Capital Trends:-

Authorized Issued capital

Financial Year
capital (₹ Crs.) (₹ Crs.)
2014-2015 1000 972.13
2013-2014 1000 972.13
2012-2013 1000 972.13
2011-2012 1000 972.13
2010-2011 1000 960.13
2009-2010 1000 888.13
2008-2009 1000 731.37
2007-2008 1000 731.37
2006-2007 1000 581.07
2005-2006 1000 553.67

EQUITY CAPITAL TRENDS

Authorized capital Issued capital

1200

1000

800

600

400

200

0
2006- 2007- 2008- 2009- 2010- 2011- 2012- 2013- 2014-
2007 2008 2009 2010 2011 2012 2013 2014 2015

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Equity share capital is a long term financial instrument, now from the upper graph we can observe
that the major rise in the equity share capital is during 2007-2011. Now this was the time when
company has cracked major acquisition deals (Acquisition of Corus in 2007) and in 2008 there
was a recession period so the cost of debt become high and revenue decreased due to decrease in
demand. So these could be the reasons for this following trend of the equity capital.
3.3 Debt Capital Trends:-

Financial Year Debt Capital (₹ Crs.)

2014-2015 26,210.25
2013-2014 26,126.78
2012-2013 25,911.51
2011-2012 23,693.82
2010-2011 26,148.18
2009-2010 25,239.20
2008-2009 26,946.18
2007-2008 18,021.69
2006-2007 9,645.33
2005-2006 2,516.15

DEBT CAPITAL TRENDS

Debt Capital

30,000.00

25,000.00

20,000.00

15,000.00

10,000.00

5,000.00

0.00

Tata steel has raised debt aggressively from 2005-2009 and the reasons could be:

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  Capital needed for the acquisition of Corus
 Capital for expansion of the manufacturing plants in India.
 In 2008 there was recession period so as to generate liquidity.

4 ANALYSIS
4.1 Equity Capital
In this detailed yearly analysis of equity capital we have focused on those year where there was a
change in issued capital, we have tried to analyze what were the cause for the changes in the equity
structure of the company.
Financial Year 2007-2008:
This was the big year for the company as they have acquired Corus as a part of Tata steel, this deal
needed a lot of funds around $12 billion so this lead to generation of funds through equity so
121,611,464 Ordinary Shares of Rs.10 each at a premium of Rs.290 per share was issued,
aggregating to ₹3,648 crores not even this two extension projects also needed funds the new Sinter
Plant No. 4 was commissioned in 2007 in Tata steel Jamshedpur, and even company planned to
double the capacity (3 MTPA to 6 MTPA) of Kalinganagar, Orissa plant. During the year, the
Company in India incurred capital expenditure of ₹2,459 crores. These could be the main reasons
for the company to issue equity to raise capital.

Financial Year 2009-2010

During the period of financial year 2009-10, the company floated a simultaneous but unlinked
Rights Issue of ₹374.32 crores consisting of Equity Shares and Fully Convertible Debentures to
fund the company’s ongoing expansion programmes at Jamshedpur, including repayment of term
loans taken for the same purpose.
Financial Year 2010-2011
One of the Tata steel’s objective and financing strategy was raising capital from portfolio
divestments and external financing methods to re-balance the capital structure and finance the
growth plans. For that approach, the Company executed several initiatives to raise ₹10,822 crores
of capital, and it was planned to carry out through divestments of about ₹3,121 crores, equity of
₹4,546 crores, and debt for the Jamshedpur expansion and working capital requirement of around
₹1,655 crores. So major chunk of capital raised was through equity.
Financial Year 2011-2012
In this year Tata steel repaid ₹3,960 crores of borrowings. In May 2011, Tata Steel have issued
securities with the features like –callable at the option of company, no maturity, equity
characteristics of worth ₹775 crores just to raise funds to help in clearing the debts or borrowings.
This was the last year

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4.2 Debt Capital
This section of the analysis deals with the reasons for change in the debt capital of the company,
this is an important part source of fund generation of the company. Debt can be divided in secured
loans and non-secured loans, secured loans have higher rate of interests.
Financial Year 2005-2006
The Company contracted debt through External Commercial Borrowings during Financial Year
2005-06. The Company has managed to lock in attractive rates and tenor of funds for its planned
expansion of their unit in Jharkhand.

Financial Year 2006-2007

The debt for Tata steel rose sharply due to the management of funds for the acquisition of Corus
which was valued at $12 billion, this acquisition has affected the liability side of balance sheet for
few more years; especially acquiring debt for the company in coming years.
Financial Year 2007-2008
The debt in the Company’s balance sheet has increased significantly after the acquisition of Corus.
And this was the time of financial crisis which led to the downturn in global steel markets which
severely impacted the near term earnings of the Company so to let the business running company
had raised capital through debt. The Company funded the acquisition of Corus with a significant
level of debt. Sharp decline in steel demand and prices particularly during the second half of the
financial year has adversely affected the cash flow generation of Tata steel.

Financial Year 2008-2009

The reason for increment of debt is issue of non-convertible debentures and term loans taken from
Banks, by Tata Steel India, partly compensated by repayment of external debts at Tata Steel
Europe.

Financial Year 2009-2010

Debt was decreased as the company has raised capital from equity for capital restructuring and
may be the cost of debt increased so these may be the reasons to lower down the debt of the
company.
Financial Year 2010-2011
The Company also raised new loans amounting to ₹1,655 crores in Tata Steel India to fund its
long-term investments in raw material projects and the expansion of the Jamshedpur Steel Works.
Financial Year 2011-2012

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Tata steel recalibrated their capital structure by replacing higher cost debt with debt conveying a
lower rate, making prepayment of credits easier as they become cheaper.
Financial Year 2012-2013
In this financial year debt was raised for the expansion plans at Chhattisgarh plant.
Financial Year 2013-2014
There is not huge increment in the debt raised by the company so it could be for normal operations
of the company. Financing for the project has been fruitfully closed with debt approval of 22,800
crores by a consortium led by State Bank of India. It had the largest-ever syndicated project finance
deal. This is truly an evidence to the constant confidence that the investors and bankers have in the
Company.
Financial Year 2014-2015
There was not any major change in this year’s debt from the previous year’s debt, we analyze that
it may be due to various small level operations.

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4.3 Debt capacity
Debt capacity tells us about the amount of funds owed by the company, and can repay within a
specific of time. In simple terms, it projects the ability of the company to borrow. The level of debt
capacity could be different for different industrial sector as it depends on various factors like nature
of cash flow, nature of assets, net profit generation, reserve and surplus. Now it could be calculated
by EBIT divided by Interest paid.
Interest Coverage
Financial Year EBIT Interest Paid
Ratio
2014-2015 10,008.80 1,975.95 5.06531
2013-2014 12,816.90 1,820.58 7.040009
2012-2013 11,126.24 1,876.77 5.928398
2011-2012 11,536.77 1,925.42 5.99182
2010-2011 11,482.29 1,735.70 6.615366
2009-2010 8,905.59 1,848.19 4.818547
2008-2009 9,176.44 1,489.50 6.160752
2007-2008 8,244.54 929.03 8.874353
2006-2007 6,913.75 251.25 27.51741
2005-2006 5,884.22 168.44 34.93363

INTEREST COVERAGE RATIO

Interest Coverage Ratio

40
35
30
25
20
15
10
5
0

Here we can observe that the interest coverage ratio was pretty well around in FY 2005-2006 and
FY 2006-2007, but it fell drastically to 8.874 in FY 2007-2008 it is because of the increase in
interest expenses due to increase in debt capital and may be its reason was the funds required for
the acquisition of Corus. And from 2008 to 2015 there is not drastic fluctuations in the interest
coverage ratio, the ups and down could be because of the debt repayment by the company or
generation of operating profits are more.

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 5 CONCLUSION

Tata Steel has proven itself as a top international player in steel-making in the last decade. As it
can be seen from the analysis that the equity capital of the company is rising and therefore Tata
Steel has been successful in its growth. The trends show that equity capital has a great impact in
maintaining the sustainability for the company. In the international market, Tata Steel has grown
confidently. The clients of Tata Steel have been increased over the span of last decade. The debt
capital trends have been increasing exponentially from 2005 to 2008. Capital structuring plays an
important part in managing the long term sources of finances. Majorly when economy is not doing
great then debt is considered as the costly source of finance than equity. So perfect capital structure
provides a proper source of financing considering the external factors and helps in value creation.

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 6 REFERENCES

1. www.moneycontrol.com
2. economictimes.indiatimes.com/tata-steel.../capitalstructure/companyid-12.
3. money.rediff.com/companies/Tata-Steel-Ltd/.../capital-structures
4. www.tatasteel.com/.../annual-report
5. www.tatasteel.com/investors/annual-report-2012.../mngmnt_spk.html
6. connection.ebscohost.com/c/.../capital-structure-analysis-tata-steel-limited
7. Research Papers
8. Tata Steel Annual Report (2006-2015)

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 7 ANNEXURE

Standalone Balance Sheet ------------------- in Rs. Cr. -------------------

Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 971.41 971.41 971.41 971.41 959.41
Equity Share Capital 971.41 971.41 971.41 971.41 959.41
Share Application Money 0.00 0.00 0.00 0.00 178.20
Reserves 65,692.48 60,176.58 54,238.27 51,649.95 45,807.02
Networth 66,663.89 61,147.99 55,209.68 52,621.36 46,944.63
Secured Loans 4,507.64 4,400.55 4,311.02 4,190.47 3,509.18
Unsecured Loans 21,702.61 21,726.23 21,600.49 19,503.35 22,639.00
Total Debt 26,210.25 26,126.78 25,911.51 23,693.82 26,148.18
Total Liabilities 92,874.14 87,274.77 81,121.19 76,315.18 73,092.81
Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 41,791.52 39,019.72 38,056.28 23,081.58 22,497.83
Less: Accum. Depreciation 16,543.00 14,753.97 13,181.23 11,715.32 10,692.73
Net Block 25,248.52 24,265.75 24,875.05 11,366.26 11,805.10
Capital Work in Progress 23,036.67 18,509.40 8,722.29 16,058.49 5,612.28
Investments 53,164.32 54,661.80 50,418.80 50,282.52 46,564.94
Inventories 8,042.00 6,007.81 5,257.94 4,858.99 3,953.76
Sundry Debtors 491.46 770.81 796.92 904.08 424.02
Cash and Bank Balance 478.59 961.16 2,218.11 3,946.99 4,138.78
Total Current Assets 9,012.05 7,739.78 8,272.97 9,710.06 8,516.56
Loans and Advances 5,215.56 5,863.68 9,587.82 8,773.73 17,052.84
Total CA, Loans & Advances 14,227.61 13,603.46 17,860.79 18,483.79 25,569.40
Current Liabilities 18,251.65 19,957.78 17,098.06 15,958.34 12,037.59
Provisions 4,551.33 3,807.86 3,657.68 3,917.54 4,421.32
Total CL & Provisions 22,802.98 23,765.64 20,755.74 19,875.88 16,458.91
Net Current Assets -8,575.37 -10,162.18 -2,894.95 -1,392.09 9,110.49
Total Assets 92,874.14 87,274.77 81,121.19 76,315.18 73,092.81

Contingent Liabilities 14,610.35 17,398.71 18,999.02 18,039.57 14,288.41

Book Value (Rs) 686.40 629.60 568.46 541.81 487.55

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Standalone Balance Sheet ------------------- in Rs. Cr. -------------------
Mar '10 Mar '09 Mar '08 Mar '07 Mar '06

12 mths 12 mths 12 mths 12 mths 12 mths

Sources Of Funds
Total Share Capital 887.41 6,203.45 6,203.30 580.67 553.67
Equity Share Capital 887.41 730.79 730.78 580.67 553.67
Share Application Money 0.00 0.00 0.00 147.06 0.00
Preference Share Capital 0.00 5,472.66 5,472.52 0.00 0.00
Reserves 36,281.34 23,501.15 21,097.43 13,368.42 9,201.63
Networth 37,168.75 29,704.60 27,300.73 14,096.15 9,755.30
Secured Loans 2,259.32 3,913.05 3,520.58 3,758.92 2,191.74
Unsecured Loans 22,979.88 23,033.13 14,501.11 5,886.41 324.41
Total Debt 25,239.20 26,946.18 18,021.69 9,645.33 2,516.15
Total Liabilities 62,407.95 56,650.78 45,322.42 23,741.48 12,271.45
Mar '10 Mar '09 Mar '08 Mar '07 Mar '06

12 mths 12 mths 12 mths 12 mths 12 mths

Application Of Funds
Gross Block 22,306.07 20,057.01 16,479.59 16,029.49 15,407.17
Less: Accum. Depreciation 10,143.63 9,062.47 8,223.48 7,486.37 6,699.85
Net Block 12,162.44 10,994.54 8,256.11 8,543.12 8,707.32
Capital Work in Progress 3,843.59 3,487.68 4,367.45 2,497.44 1,157.73
Investments 44,979.67 42,371.78 4,103.19 6,106.18 4,069.96
Inventories 3,077.75 3,480.47 2,604.98 2,332.98 2,174.75
Sundry Debtors 434.83 635.98 543.48 631.63 539.40
Cash and Bank Balance 500.30 463.58 465.00 446.51 288.35
Total Current Assets 4,012.88 4,580.03 3,613.46 3,411.12 3,002.50
Loans and Advances 6,678.55 5,884.61 34,582.84 4,025.95 1,994.46
Fixed Deposits 2,733.84 1,127.02 0.04 7,234.84 0.04
Total CA, Loans & Advances 13,425.27 11,591.66 38,196.34 14,671.91 4,997.00
Current Liabilities 8,699.34 8,965.76 6,842.26 6,349.24 4,552.39
Provisions 3,303.68 2,934.19 2,913.52 1,930.46 2,361.44
Total CL & Provisions 12,003.02 11,899.95 9,755.78 8,279.70 6,913.83
Net Current Assets 1,422.25 -308.29 28,440.56 6,392.21 -1,916.83
Miscellaneous Expenses 0.00 105.07 155.11 202.53 253.27
Total Assets 62,407.95 56,650.78 45,322.42 23,741.48 12,271.45

Contingent Liabilities 13,184.61 12,188.55 9,250.08 7,185.93 3,872.34

Book Value (Rs) 418.94 331.68 298.78 240.31 176.26

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Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 46,577.26 46,309.34 42,317.24 37,005.71 31,902.14
Excise Duty 4,792.26 4,598.31 4,117.81 3,072.25 2,505.79
Net Sales 41,785.00 41,711.03 38,199.43 33,933.46 29,396.35
Other Income 2,473.63 645.88 227.51 1,397.44 1,176.45
Stock Adjustments 745.17 155.18 404.60 220.72 173.65
Total Income 45,003.80 42,512.09 38,831.54 35,551.62 30,746.45
Expenditure
Raw Materials 14,701.62 12,641.57 12,421.63 9,917.37 7,841.47
Power & Fuel Cost 2,704.42 2,772.31 2,510.17 1,990.16 1,558.49
Employee Cost 4,601.92 3,673.08 3,608.52 3,047.26 2,837.46
Miscellaneous Expenses 10,513.41 9,962.35 8,937.47 7,662.62 5,850.29
Total Expenses 32,521.37 29,049.31 27,477.79 22,617.41 18,087.71
Mar '15 Mar '14 Mar '13 Mar '12 Mar '11

Operating Profit 10,008.80 12,816.90 11,126.24 11,536.77 11,482.29

PBDIT 12,482.43 13,462.78 11,353.75 12,934.21 12,658.74
Interest 1,975.95 1,820.58 1,876.77 1,925.42 1,735.70
PBDT 10,506.48 11,642.20 9,476.98 11,008.79 10,923.04
Depreciation 1,997.59 1,928.70 1,640.38 1,151.44 1,146.19
Profit Before Tax 8,508.89 9,713.50 7,836.60 9,857.35 9,776.85
PBT (Post Extra-ord Items) 8,508.89 9,713.50 7,836.60 9,857.35 9,776.85
Tax 2,069.77 3,301.31 2,773.63 3,160.93 2,911.16
Reported Net Profit 6,439.12 6,412.19 5,062.97 6,696.42 6,865.69
Total Value Addition 17,819.75 16,407.74 15,056.16 12,700.04 10,246.24
Equity Dividend 776.97 971.21 776.97 1,165.46 1,151.06
Corporate Dividend Tax 153.02 66.19 128.73 181.57 156.71
Per share data (annualised)
Shares in issue (lakhs) 9,712.15 9,712.15 9,712.15 9,712.14 9,592.14
Earning Per Share (Rs) 66.30 66.02 52.13 68.95 71.58
Equity Dividend (%) 80.00 100.00 80.00 120.00 120.00
Book Value (Rs) 686.40 629.60 568.46 541.81 487.55

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Standalone Profit & Loss account ------------------- in Rs. Cr. -------------------
Mar '10 Mar '09 Mar '08 Mar '07 Mar '06

12 mths 12 mths 12 mths 12 mths 12 mths

Income
Sales Turnover 26,757.60 26,843.53 22,191.43 19,756.84 17,136.92
Excise Duty 1,816.95 2,495.21 2,537.02 2,304.18 2,004.83
Net Sales 24,940.65 24,348.32 19,654.41 17,452.66 15,132.09
Other Income 1,241.08 603.07 586.41 362.12 252.58
Stock Adjustments -134.97 289.27 38.73 82.47 104.91
Total Income 26,046.76 25,240.66 20,279.55 17,897.25 15,489.58
Expenditure
Raw Materials 8,356.45 8,568.71 6,063.53 5,762.42 4,766.44
Power & Fuel Cost 1,383.44 1,222.48 1,038.77 1,027.84 897.57
Employee Cost 2,361.48 2,305.81 1,589.77 1,454.83 1,351.51
Other Manufacturing Expenses 2,419.89 2,127.48 1,654.96 1,561.40 1,466.83
Selling and Admin Expenses 417.90 400.24 247.77 244.92 255.93
Miscellaneous Expenses 1,287.04 1,180.08 1,029.30 805.99 727.12
Preoperative Exp Capitalised -326.11 -343.65 -175.50 -236.02 -112.62
Total Expenses 15,900.09 15,461.15 11,448.60 10,621.38 9,352.78
Mar '10 Mar '09 Mar '08 Mar '07 Mar '06

Operating Profit 8,905.59 9,176.44 8,244.54 6,913.75 5,884.22

PBDIT 10,146.67 9,779.51 8,830.95 7,275.87 6,136.80
Interest 1,848.19 1,489.50 929.03 251.25 168.44
PBDT 8,298.48 8,290.01 7,901.92 7,024.62 5,968.36
Depreciation 1,083.18 973.40 834.61 819.29 775.10
Profit Before Tax 7,215.30 7,316.61 7,067.31 6,205.33 5,193.26
Extra-ordinary items 0.00 0.00 0.00 57.29 47.50
PBT (Post Extra-ord Items) 7,215.30 7,316.61 7,067.31 6,262.62 5,240.76
Tax 2,168.50 2,114.87 2,380.28 2,040.47 1,734.38
Reported Net Profit 5,046.80 5,201.74 4,687.03 4,222.15 3,506.38
Total Value Addition 7,543.64 6,892.44 5,385.07 4,858.96 4,586.34
Preference Dividend 45.88 109.45 22.19 0.00 0.00
Equity Dividend 709.77 1,168.95 1,168.93 943.91 719.51
Corporate Dividend Tax 122.80 214.10 202.43 160.42 100.92
Per share data (annualised)
Shares in issue (lakhs) 8,872.14 7,305.92 7,305.84 5,804.73 5,534.73
Earning Per Share (Rs) 56.37 69.70 63.85 72.74 63.35
Equity Dividend (%) 80.00 160.00 160.00 155.00 130.00
Book Value (Rs) 418.94 331.68 298.78 240.31 176.26

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