In 2021-22, JSW Steel had to incur higher cost per tonne on account of higher raw material prices the company imports (coking coal). The cost per tonne for Tata Steel has grown at a CAGR of 8.5% against a 17% of JSW Steel in the last five years. Operating expenses per tonne is the company's total operating cost to produce one tonne of steel. Going forward the volumes are expected to grow in line with the economic activity in the country. The sharp increase in volume was led by the strong post-covid recovery in demand. Tata Steel vs JSW Steel Sales Volume Growth (2017-2022) On the other hand, JSW Steel's volumes have grown by a 4.3% (CAGR) during the same period, largely supported by the double digit jump in the year ending 2022. Tata Steel's sales volumes in India and Europe have grown at a CAGR of 5.3% in the last five years. Going forward, both companies expect their revenues to grow at a healthy pace driven government initiatives to boost infrastructure, housing, and the automobile industry. All of this was on the back of an upswing in the steel cycle which allowed steel companies to scale their businesses. The entire sector reported its best financial performance. Tata Steel vs JSW Steel Revenue Growth (2017-2022)Ģ022 was a remarkable year for the steel industry. JSW Steel's revenue growth was led by capacity addition, growing domestic economic activity, and rising steel prices.įor Tata Steel, an increase in sales volume, a growing share of value-added products, and increasing realisations have driven the revenue growth. Though Tata Steel's total revenue is nearly twice that of JSW Steel, its revenue has grown at a CAGR of 17.2% against 23.5% of JSW Steel in the last five years. High share of value added products in revenue Tata Steel vs JSW Steel Business OverviewĮxpanding to adjacent businesses beyond steel The company has a diversified product portfolio used in the automotive, general engineering, and project and construction sectors.
JSW Steel, on the other hand, is a part of the JSW Group and is involved in the business of manufacturing and selling iron and steel products. The company is also the world's most geographically diversified steel producer in over 50 countries. Its product portfolio caters to the automotive, construction, industrial, and general engineering sectors. It's primarily involved in the business of mining, manufacturing steel, and selling finished steel as well as value-added products and solutions. Tata Steel is the steel arm of the prestigious Tata Group. In this article, we compare the financials, fundaments, and valuations of both companies. While several steel companies are set to benefit from this initiative, two well-known private players will also benefit from the growth of this industry. The government aims to boost this industry by increasing the capacity to 300 MT and per capita consumption to 160 kg by 2030. With steel contributing almost 2% to India's gross domestic product and employing almost half a million people, it's a strategically important industry for the country. It's also the third-largest consumer of steel with a per capita consumption of 72.3 kg. India is the second-largest producer of steel with a capacity of 143.9 million tonnes per annum (MT).
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