COMPARATIVE FINANCIAL PERFORMANCE WITH REFERENCE TO TATA STEEL AND JSW STEEL
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Course
FIN 37
Institution
Bharathiyar University
This document shows the financial performance of two main steel companies in India and the comparison of both companies. The operating profit margin and net profit margin are also provided
A COMPARATIVE STUDY OF FINANCIAL PERFORMANCE
WITH REFERENCE TO TATA STEEL LTD & JSW LTD
NAVEENKUMAR R KEERTHIVASAN G
STUDENT STUDENT
SCHOOL OF COMMERCE PG SCHOOL OF COMMERCE PG
RVS COLLEGE OF ARTS AND SCIENCE RVS COLLEGE OF ARTS AND SCIENCE
SULUR, COIMBATORE SULUR, COIMBATORE
ABSTRACT
This study is conducted purely based on secondary data obtained through websites of the specified
industry. By using the ratio analysis tool, we can analyze the performance of both the steel
industries in India, and we can easily find out the strength and weakness of the companies and
their position in the market. Different ratios are used in this study and particularly those which are
related to the financial statement for this purpose, the balance sheet of the year 2019-2023 of both
years are used and from then, ratios are calculated, so according to which we can easily compare
the company's performance and tell which company grows faster and whose position is better than
the other one. After comparing the financial position, it is clear that the position of TATA steels is
much better than JSW steels.
INTRODUCTION
The Iron and Steel industry in India is among the most important industries within the
country. India surpassed Japan as the second largest steel producer in January 2019.[1] As
per world steel, India's crude steel production in 2018 was at 106.5 tons, 4.9% increase from 101.5
in 2017, which means that India overtook Japan as the world's second largest steel production
country. Japan produced 104.3 in year 2018, decrease of 0.3% compared to year 2017. Tata Steel
Limited is an Indian multinational steel-making company, based in Jamshedpur, Jharkhand and
headquartered in Mumbai, Maharashtra. It is a part of the Tata Group. Formerly known as Tata
, Iron and Steel Company Limited (TISCO), Tata Steel is among the largest steel producing
companies in the world, with an annual crude steel capacity of 35 million tons. It is one of the
world's most geographically diversified steel producers, with operations and commercial presence
across the world. JSW Steel Limited is an Indian multinational steel producer based
in Mumbai and is a flagship company of the JSW Group. After the merger of Bhushan Power &
Steel, Ispat Steel and Jindal Vijayanagar Steel Limited, JSW Steel became India's second largest
private sector steel company.
KEY WORDS
Ratio analysis, comparative analysis for financial statement of TATA steel limited and JSW steel
limited financial performance.
RATIO ANALYISIS
Ratio analysis is a quantitative method of gaining insight into a company's liquidity, operational
efficiency, and profitability by studying its financial statements such as the balance sheet and
income statement. Ratio analysis is a cornerstone of fundamental equity analysis.
OBJECTIVES OF THE STUDY
To compare significance of each individual item of expenses and incomes.
To understand and analyze the solvency and liquidity position of the company using
financial ratios.
Each spending and revenue item's relative importance to the others shines out clearly.
Using financial ratios, compared and analyze the company's Profitability ratio Return
ratio, Liquidity ratio, Stability ratio, Efficiency ratio, Coverage ratio.
RESEARCH METHODOLOGY
RESEARCH
Research can be defined as “A Scientific and systemic search for pertinent records on a unique
topic”. Therefore, research should be understood as a geared-up pastime with particular targets on
a hassle or issues supported through compilation of associated facts and facts, involving utility of
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