JSW Steels
JSW Steels
JSW Steels
JSW STEELS
Group – 2
Angel Mary (18029)
Anna S Lal (18032)
Athira A (18047)
Jithin Jayakumar (18080)
Prachi Singh (18116)
Ranjana L Narayanan (18128)
Sree Lakshmi P (18149)
ABOUT THE COMPANY
company. It is an integral part of the O. P. Jindal Group, and has been a part of
Ranked among India's top business houses, JSW's innovative and sustainable
ideas cater to the core sectors of Steel, Energy, Cement and Infrastructure. The
Group continues to strive for excellence with its strength, differentiated product
sustainability.
From its humble beginnings in steel, the JSW Group has expanded its presence
across India, South America, South Africa & Europe. Through its CSR projects,
those areas of our country that lack resources. JSW is known to be the “strategic
first mover” to venture away from status quo, have the conviction to make
work hard and win against all odds. It is, in many ways, the story of India itself.
What began as one man’s dream has evolved into one of India`s leading business
houses, with a workforce of over 40,000. Over the years, JSW has grown beyond
steel, foraying into cement, infrastructure, energy and the like, helping build a
new nation.
JSW has, and always will be, known as the “strategic first mover” to venture away
from status quo, thanks to its conviction to make fundamental changes and drive
operational excellence.
partner in India’s progress, and a firm believer in giving back to the society and
JSW is a mark of trust and quality that millions of customers around the world
depend on.
VISION
TOUCH
JSW is about building, transforming and giving back. Every act of ours is centred
the lives of our business associates, our customers, our employees, the
PURPOSE
COMMUNITIES WE LIVE IN BY
decisions.
JSW’s commitment to do business responsibly is built into the core values of the
It relies on:
• A dynamic leadership
contiguous to the Company’s operations and beyond. All the activities in the
seven priority areas are carried out by the JSW Foundation on behalf of JSW
Steel, and have benefitted over 650,000 persons. The financial year registered the
best-ever performance for the Company, and the expenditure for CSR was `61
crore.
Administration of spirulina
Institutional child-births
Vasind: Free physiotherapy for senior citizens by experts from the Neurology
students
Bellary: Shifting of Tamanna School for children with special needs to a new
retention projects led to doubling of profit for 1,063 farmers and empowered over
500 women
Vijayanagar and Salem: water conservation efforts have led to increase of ground
A mechanical engineer, Mr. Jindal led the JSW Group through some of its most
exciting phases, including JSW Steel and JSW Energy going public in 1995 and
2009-10, respectively. Today, the Group takes pride in expanding the business
landscape across Infrastructure, Sports and Cement, with the Group’s revenues
over USD 13 billion for the year ended March 31, 2018.
Mrs. Sangita Jindal
In the twenty years that she has spearheaded operations, the Foundation has
creation, local sports development and conservation of our arts and cultural
heritage. The Golden Peacock Award for CSR awarded to the JSW Foundation in
She is a member of the Board of Directors of Asia Society India Centre and
National Culture Fund, Trustee on the Board of the World Monument Fund,
Advisor to Ted X Gateway and a member of the IMC Ladies’ Wing Art, Culture
and Film Committee. She is a recipient of the Marico Ricci-Metro Society Young
Achievers Award in 2004, the Best Citizen Award conferred by the I Love
strategies of the company. He has risen through the levels and now holds the dual
In his present capacities, Mr Rao is responsible for the overall operations of the
management.
Operations and the Commercial department of both Vasind and Tarapur plants.
In an inspiring story of growth through dedication, he worked his way to the post
Steel in 2004 and took charge as Director and CEO of JSW Steel in 2009. Dr
and other statements and notes thereto prepared as per requirements of Division
II to the Schedule III to the Act are available at the Company’s website
registered office of the company during working hours for a period of 21 days
1. Basis of preparation
These abridged standalone financial statements have been prepared on the basis
of complete set of the standalone financial statements for the year ended 31 March
2018, in accordance with the proviso to sub-section (1) of section 136 of the
Companies Act, 2013 ("the Act") and Rule 10 of the Companies (Accounts)
Rules, 2014.
2. Summary of significant accounting policies
AS") prescribed under section 133 of the Act read with rule 3 of the Companies
Standards) Amendment Rules, 2016 are set out in Note 2 to the annual standalone
financial statements.
judgments
the carrying amount of assets and liabilities that are not readily apparent from
other sources. The estimates and associated assumptions are based on historical
experience and other factors that are considered to be relevant. Actual results may
differ from these estimates. The estimates and underlying assumptions are
in the year in which the estimate is revised if the revision affects only that year,
or in the year of the revision and future year, if the revision affects current and
future year.
THE COST STRUCTURE OF THE MAJOR
The products are largely classified into three categories namely Rolled products
As per the annual report 2017-18, the major revenue is through the sales of
The press release on February 6, 2019 gives the details of production and
JSW steel, the report analyses the overall cost structure adopted by the
company. As per the FY 2017-18 annual report, the JSW steel cost structure
expense
c) Semi-variable costs
Other expenses which was a total of 11,624.35 Crores accounted to the semi
The Job Cost for the JSW Steel at the end of March 2017, can be recorded because
of the following expenses incurred and the amount of revenue they generated
consumed
expense
In 2016 = 24%
In 2017 = 19%
In 2018 = 16%
STANDARDS SET FOR THE MAJOR EXPENSES
The major expenses in JSW steel for the years 2017-18 and 2016-17
Here it clearly shows that the expenses occurred un the year 2018-17 is
comparatively higher than the previous year 2017-16. Its because of , they
implemented a few number of new projects in different places. And they have a
fixed standards for expenses in different plants.
In Dolvi, capital expenditure 27.22 cr. And the estimated expenditure was 32.55
cr.
In Salem, capital expenditure of 1.17 cr. And the estimated expenditure was 2.07
cr.
They have clear set of standards for all the major expenses and for the capital
expenditurs also.
BUDGETING PRACTICES
financial requirements.
Estimation of capital expenditure during the budget period and to see that
decisions.
Evaluation of various proposals in order of priority having regard to the
over-run.
Care should be taken to think all the implication of long range capital
It should recognize the fact that bigger benefits are preferable to smaller
may be rejected.
Independent Proposals:
machinery
results in the automatic rejection of the other proposal. Then the two
and the other can be accepted. It is easier for a firm to take capital budgeting
Introduction:
Product portfolio consists of hot roll coils, HR sheets and plates, cold
Economic Analysis:
investment growth.
o-y) while the non-energy indices grew by 6%.The metal price indices
grew by 24%.
administered by OPEC.
Industry Analysis:
1.59 billion tonnes in the year ,after a subdued growth of 1% in 2016 .A low
investment led recovery in advanced economies were the key factors driving
this momentum.
production.
Globally, iron and steel witnessed the highest number of trade actions. India has
imposed second largest number of trade actions at 150 with only 14 action on
Business Review:
The company focusses on expanding the share of the value added products in its
Continuing the trends from last year ,flat products occupied a significant
The company is proud of being part of India’s growth story through supplying
steel to metro rail projects in various cities .JSW neosteel was also used in
major projects in the country from railway projects ,aerospace ,defence projects
,port and airport projects ,expressways and highways and critical atomic power
Financially, a company can have certain key performance indicators which help
the investors and shareholders to invest and buy the shares respectively.
The various performance indicators are spread across various sections in the
financial statements. These sections are Profit & Loss statements, Balance sheet,
In the Profit and Loss statements the various KPIs are Gross Turnover, Operating
EBITDA, Operating EBITDA Margin, Profit after tax, Earnings Per share and
Equity Ratio.
The KPIs in the shareholder matrices include Dividend per share and Book value
per share. Also for Operational matrices the KPIs are Crude steel production,
performance of the company. We here look into the performance of the company
From the diagram above, which depicts the continuous increase in the gross
turnover of the company, except for the FY 15-16. The reason for the decline
being the high competitive pressure and sharp decline in the steel pricing and
margin compression. Though the market was going down, the company did fairly
In the FY 16-17, the gross turnover saw an increase from 18.79% from FY 15-16
to 39.37% in the FY 16-17. Not only that, since then for the next year again, the
gross turnover of the company saw a further 6% increase. This further increase
in Gross turnover can be accounted from the profit n loss statement which depicts
that, there is a considerable decrease in the fixed assets of the company and also
the expenses. Because of which there could have been an increase in the gross
turnover.
The operating EBITDA has seen an increase from 28.21% decline in FY 15-16
yield and productivity. Again, in FY 17-18, there was a 16% increase in the
operating EBITDA.
As there was an increase in the operating EBITDA, the operating EBITDA
margin has also increased from a previous 15.6% to 22.1% in FY 16-17. Similarly
as the operating activities increased in alignment with the goal to increase yield
and productivity, the operating EBITDA margin decreased from 22.1% in FY 16-
highlights of FY 17-18.
The PAT has also increased from 3,498 crores to 3577 crores in FY 16-17, this
increase is accounted because of the increase in sales volume growth and also
been an increase in PAT from 3,577 crores to 4,625 crores. This increase can be
Shareholder matrices:
The dividend is issued for Rs 10 per share. After the decline in dividend per share
in FY 15-16, the company saw a rise in the issue price of the dividends as, the
PAT of the company increased, that subsequently resulted in the rise of dividend
per share of the company to the shareholders. Similarly in FY 17-18, there was
an increase in the issue price of dividend from Rs 10 to Rs 13. The reason for the
increase could be the continuous profitability of the company for the consecutive
years.
This is another metric that would measure the performance of the company. The
coming fiscal years saw an increase in the book value per share of the company,
as there has been a significant amount of work done by the company to develop
Since November last year, steel prices have fallen, led by subdued demand in the
However, the management now believes that prices are bottoming and is hopeful
reasonably strong, earnings uptick would depend upon the steel prices
On the operating front, the company witnessed an increase in raw material cost.
Cost of blended iron ore and coking coal increased 6%and 7% year on year,
respectively. While this was added to the overall cost, the impact was marginal
The fall in revenue for the company is due to the rise in the input costs of the steel
industry. As they are expected to stabilize in the upcoming quarters, which will
half of the current financial year. The company shall look into the fluctuations of
the market rates and forecast adequately for the upcoming quarters to avert the