Tata Steel Limited
NSE Symbol TATASTEEL
Q1 FY2011 RESULTS
SUMMARY OF CONSOLIDATED RESULTS
Net Sales / Income from Operations is Rs.27,010.06 cr against Rs.23,180.51 Cr in Q1 FY10 and Rs.101,757.77 Cr for total FY2010.
Total operating Income is Rs.27,194.80 Cr – compared to rs.23,292.31 Cr in Q1 FY10 and Rs.102,393.12 Cr in total FY10.
Total Expenditure is Rs.23,806.15 – compared to Rs.24,411.15 Cr in Q1 FY10 – and Rs.98,842.19 Cr in FY2010.
Net Profit is Rs.1,825.26 – compared to a loss of Rs.2,208.68 Cr in Q1 FY10 – and a loss of Rs.2,120.84 in FY2010.
Basic EPS per share of rs.10 Face Value is Rs.20.59 compared to a Minus Rs.30.70 in Q1 FY10 – and a Minus Rs.24.92 in FY2010.
STAND ALONE RESULTS
COMPARISON
The following Table gives Stand Alone performance results of TATA Steel for Q/e June 10, Q/e June 2009, their difference in % terms, the total annual figures for FY10 (stand alone) and proportionate increase of annualized Q1 FY11 compared to last year FY2010 (i.e., Q1 FY11 x 4 (vs) FY2010).
Net Sales in Q1 FY11 has increased by 16.5% to Rs.6471.27 Cr – compared to Rs.5554.02 Cr – and proportionately by 4.7% compared to FY2010 (Rs.24716.82 Cr).
Total Expenditure is down by 5.1% to Rs.3915.23 Cr from Rs.4126.50 Cr in Q1 FY10 - and proportionately down by 8.7% from FY2010 (Rs.17153.07 Cr).
Net Profit at Rs.1579.39 cr has increased by almost 100% from Q1 FY10 Rs.789.83 Cr – and proportionately by 25.2% compared to FY2010.(Rs.5046.80 CR).
Basic EPS has increased by 71.6% to Rs.17.8 from Rs.10.37 in Q1 FY10.
RESULTS (STAND ALONE) IN FIGURES:
Jun-10 | Jun-09 | Dif%1 | dif%2 | ||
Net Sales | 647127 | 555402 | 16.5 | 2471682 | 4.7 |
Other Optg Income | 8021 | 6153 | 30.4 | 30516 | 5.1 |
Raw Materials | 162341 | 186054 | -12.7 | 676302 | -4 |
Traded Goods | 3639 | 2782 | 30.8 | 16908 | -13.9 |
Employees Cost | 57814 | 50621 | 14.2 | 236148 | -2.1 |
Depreciation | 28020 | 25317 | 10.7 | 108318 | 3.5 |
Other Expen | 173718 | 143317 | 21.2 | 664134 | 4.6 |
Total Expen | 391523 | 412650 | -5.1 | 1715307 | -8.7 |
Profit.Operations | 263625 | 148905 | 77 | 786891 | 34 |
Other Income | 4843 | 4634 | 4.5 | 85379 | -77.3 |
Profit B I & EI | 268468 | 153539 | 74.9 | 872270 | 23.1 |
Interest | 32768 | 34216 | -4.2 | 150840 | -13.1 |
P A I B B EI | 235700 | 119323 | 97.5 | 721430 | 30.7 |
P B T | 235700 | 119323 | 97.5 | 721430 | 30.7 |
Tax expense | 77761 | 40340 | 92.8 | 216750 | 43.5 |
P A T | 157939 | 78983 | 100 | 504680 | 25.2 |
Net Profit | 157939 | 78983 | 100 | 504680 | 25.2 |
Dividend% | - | - | 80 | ||
Face Value.Rs | 10 | 10 | 0 | 10 | |
Paid Up Equity | 88741 | 73079 | 21.4 | 88741 | |
Reserves | - | - | 3607439 | ||
Basic EPS A EI | 17.8 | 10.37 | 71.6 | - | |
Diluted EPS A EI | 17.17 | 9.61 | 78.7 | - | |
Basic EPS B EI | - | - | 60.26 | ||
Diluted EPS B EI | - | - | 57.31 | ||
Public holding.% | 68.55 | 66.05 | 3.8 | 68.53 |
ANNOUNCEMENTS BY TATA STEEL
TO THE EXCHANGE
12-08-2010 Tata Steel Limited has informed the Exchange regarding the consolidated Results for the quarter ended on 30-JUN-2010 as follows: Net Sales of Rs. 2701006 lacs for quarter ending on 30-JUN-2010 against Rs. 2318051 lacs for the quarter ending on 30-JUN-2009. Net Profit / (Loss) of Rs. 182526 lacs for the quarter ending on 30-JUN-2010 against Rs. (220868) lacs for the quarter ending on 30-JUN-2009.
12-08-2010 Tata Steel Limited has informed the Exchange regarding the standalone Results for the quarter ended on 30-JUN-2010 as follows: Net Sales of Rs. 647127 lacs for quarter ending on 30-JUN-2010 against Rs. 555402 lacs for the quarter ending on 30-JUN-2009. Net Profit / (Loss) of Rs. 157939 lacs for the quarter ending on 30-JUN-2010 against Rs. 78983 lacs for the quarter ending on 30-JUN-2009.
Excerpts from TATA STEEL’s Press release
Group Performance Highlights:
• Tata Steel Group during the 1st quarter of the financial year 2010-11 (Q1 FY’11) recorded Profit after tax (after minority interest and share of profit of associates) of ` 1,825 crores (US$ 393 million) compared to a Loss of ` 2,209 crores (US$ 476 million) in Q1 FY’10, an improvement of ` 4,034 crores (US$ 869 million).
• Group EBITDA in Q1 FY’11 was ` 4,527 crores (US$ 975 million) compared to ` 204 crores (US$ 44 million) in Q1 FY’10, an improvement of ` 4,323 crores (US$ 931 million). The return to robust EBITDA levels was attributable mainly to the significant turnaround in the financial performance of the European operations and a much improved financial performance in India.
• Group consolidated turnover rose ` 3,903 crores (US$ 840 million), or 17%, to ` 27,195 crores (US$ 5,856 million) from ` 23,292 crores (US$ 5,016 million) in Q1 FY’10, reflecting the recovery in global steel markets.
• The Group’s steel deliveries rose 13% to 6.05 million tonnes compared to Q1 FY’10 as capacity utilisation improved in Europe.
• Net Finance Charges for the Group at ` 598 crores (US$ 129 million) in Q1 FY’11 were 32% lower than in Q1 FY’10 (` 882 crores, US$ 190 million), a reduction of ` 284 crores (US$ 61 million), primarily due to lower interest charges on variable elements of senior debt facilities and repayment of debt at Tata Steel Europe.
• Liquidity and Net Debt: The Group continued to enjoy a strong liquidity position (including undrawn credit lines) of ` 13,277 crores (US$ 2,859 million) as at end June 2010, resulting from tight working capital management across all geographies. The Group’s net debt at the end of June 2010 stood at ` 45,713 crores (US$ 9,843 million).
Financial Performance Analysis:
Consolidated financial results summary (under Indian GAAP) for the quarter ended June 2010
All figures in US$ Mn, unless specified
HIGHLIGHTS :: Q1 FY'11 :: Q1 FY'10 :: Q4 FY'10
Steel Deliveries (Mn tons) :: 6.049 :: 5.349 :: 6.448
Turnover :: 5,856 :: 5,016 :: 5,922
EBITDA :: 975 :: 44 1:: 1,148
EBITDA Margin (%) :: 16.6:: 0.9 :: 19.4
Depreciation :: 225 :: 234 :: 236
Net Finance Charges :: 129 :: 190 :: 142
PBT :: 601 :: (434) :: 687
PBT Margin (%) :: 10.3 :: (8.7) :: 11.6
Profit after Taxes, Minority Interest and Share of Associates :: 393 :: (476) :: 524
PAT Margin (%) :: 6.7 :: (9.5) :: 8.8
For the purposes of converting all financial numbers to US$ for all comparable periods, a US$/`exchange rate of 46.44 has been used throughout this document.
Tata Steel Europe MD & CEO Mr. Kirby Adams said: “In April-June the recovery of the European operations continued. Not only was there a US$ 692 million turnaround in Corus’ year-on-year EBITDA performance, there were also significant improvements in revenue and capacity utilisation. This was the result of higher selling prices and the fact that the full impact of recent raw materials price rises on profitability had yet to be felt. European demand has improved in sectors like automotive and aerospace. However, the long-term sustainability of the recovery is highly dependent on future growth in the European construction sector.”
Tata Steel Managing Director Mr. H.M. Nerurkar said: “Steel demand and prices have both recovered strongly in the last two quarters. While the recent surge in imports affected our sales to some extent, the year should see a strong performance from our Indian operations, backed by full availability of the 6.8 million tonnes p.a. capacity, several improvement programmes in place and strong growth in demand. The 3 million tonnes expansion at Jamshedpur, a priority for us, is on schedule.”
Tata Steel Group:
Group EBITDA at ` 4,527 crores (US$ 975 million) was 22 times higher than in Q1 FY’10 and 15% lower compared to Q4 FY’10. The Group’s steel deliveries rose 13% to 6.05 million tonnes in Q1 FY’11 compared to Q1 FY’10 and fell 6% compared to Q4 FY’10. The decline in deliveries was due to sluggish market conditions in India, compensated by higher average selling prices across all product segments and geographies.
Tata Steel India
Turnover at Tata Steel India at ` 6,551 crores (US$ 1,411 million) rose 17% in Q1 FY’11 compared to Q1 FY’10 and fell 11% compared to Q4 FY’10, while EBITDA at ` 2,965 crores (US$ 638 million) was up by 66% compared to Q1 FY’10 and down by 18% compared to Q4 FY’10. In Q1 FY’11 operational EBITDA per tonne, excluding profits on the sale of investments, rose to ` 21,037 (US$ 453) per tonne, 16% higher than the ` 18,111 (US$ 390) per tonne recorded in Q4 FY’10. EBITDA in Q4 FY’10 was higher on account of an increase in deliveries as well as profits on sale of investments, which were ` 526 crores (US$ 113 million) in Q4 FY’10 compared to ` 19 crores (US$ 4 million) in Q1 FY’11.
Saleable steel production in Q1 FY’11 rose by 3% to 1.59 million tonnes compared to Q1 FY’10 and dropped by 6% compared to Q4 FY’10. Operations at Jamshedpur were affected during the quarter by two major power failures in April and May. Sales in Q1 FY’11 dropped by 1% to 1.399 million tonnes compared to Q1 FY’10 and dropped by 18% compared to Q4 FY’10.
The Ferro Alloys and Minerals division recorded an operating profit of ` 204 crores (US$ 44 million), an increase of 47% over the ` 139 crores (US$ 30 million) recorded in Q4 FY’10 and 11 times higher than the operating profit in Q1 FY’10 of ` 17 crores (US$ 4 million).
Tata Steel Europe (Corus)
Turnover at Tata Steel Europe at ` 17,711 crores (US$ 3,814 million) rose by 16% in Q1 FY’11 compared to Q1 FY’10 and by 4% compared to Q4 FY’10, while EBITDA at ` 1,363 crores (US$ 293 million) rose from a loss of ` 1,853 crores (US$ 399 million) in Q1 FY’10 and fell by 17% compared to Q4 FY’10. The sequential drop in EBITDA is due to translation losses as European earnings have been converted at a lower exchange rate than in Q4 FY’10 because of the depreciation of Pound Sterling against the Indian Rupee. A fire at IJmuiden resulted in production losses and increased maintenance expenses in Q1 FY’11.
Liquid steel production in Q1 FY’11 rose by 32% to 3.74 million tonnes compared to Q1 FY’10 and dropped marginally by 0.1% compared to Q4 FY’10, while deliveries rose by 19% to 3.71 million tonnes compared to Q1 FY’10 and dropped by 2% compared to Q4 FY’10.
Tata Steel Europe made rapid progress in developing the new operating model that will transform the Company into a more integrated, customer-focused business. As well as establishing a new Group Marketing function, a pilot manufacturing hub, “Longs EU”, has been set up based at Scunthorpe. Consultations continue on the establishment of other manufacturing hubs covering strip products.
Market conditions during the quarter were sufficiently strong for the Company’s sales prices to continue increasing and there were price rise announcements on reversing mill plate and structural sections. Production at Company plants also continued to rise, weekly production records being set at the Port Talbot blast furnaces. IJmuiden set a new quarterly production record for hot-dip galvanised coil of about 100,000 tonnes.
The cost saving and restructuring programmes launched in the 2008-09 financial year in Tata Steel Europe continue to accrue an estimated £350 million (US$ 524 million) in annual benefits.
The Company continued to reduce CO2 emissions, inaugurating a £60 million BOS gas recovery plant at Port Talbot. This new facility, the largest investment in UK steelmaking of recent years, is reducing the South Wales plant’s CO2 emissions by almost 300,000 tonnes a year, as well as halving its requirement for externally sourced energy.
The Company announced that Dr. Karl-Ulrich Köhler will succeed Mr. Kirby Adams as MD & CEO of Tata Steel Europe from the beginning of October 2010, following Mr. Adams’ decision to return to Australia. Dr. Köhler joined the Company in February as Chief Operating Officer.
NatSteel
Turnover at NatSteel at ` 1,742 crores (US$ 375 million) was up by 27% in Q1 FY’11 compared to Q1 FY’10 and by 17% compared to Q4 FY’10, while EBITDA at ` 94 crores (US$ 20 million) was up by 114% compared to Q1 FY’10 and by 95% compared to Q4 FY’10.
Finished steel production in Q1 FY’11 dropped by 1% to 0.375 million tonnes compared to Q1 FY’10 and by 13% compared to Q4 FY’10, while deliveries rose by 12% to 0.609 million tones compared to Q1 FY’10 and dropped by 13% compared to Q4 FY’10.
Tata Steel Thailand
Turnover at Tata Steel Thailand at ` 872 crores (US$ 188 million) rose by 37% in Q1 FY’11 compared to Q1 FY’10 and dropped by 4% compared to Q4 FY’10, while EBITDA at ` 56 crores (US$ 12 million) was up by 1,295% compared to Q1 FY’10 and by 273% compared to Q4 FY’10. Finished steel production in Q1 FY’11 rose by 16% to 0.304 million tonnes compared to Q1 FY’10 and dropped by 14% compared to Q4 FY’10, while deliveries rose by 13% to 0.297 million tones compared to Q1 FY’10 and dropped by 6% compared to Q4 FY’10.
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