TATA STEEL LIMITED
FIRST QUARTER RESULTS
Q1 FY 2013
Tata Steel has reported Consolidated Financial Results
for the quarter ending June 30, 2012
Group Performance Highlights:
Tata Steel Group’s
profit after tax (after minority interest and share of profit of associates)
for Q1 FY’13 was Rs.598 crores (US$107
million) compared to a profit of Rs.433 crores (US$78million) in Q4 FY'12
and a profit of Rs.5,347 crores (US$961 million) in Q1 FY’12
(including one-off profits of Rs.3,362
crores (US$604 million) on sale of investments).
Group EBITDA
in Q1 FY’13 was Rs.3,581 crores (US$644 million) compared to Rs.3,419 crores (US$615 million) in Q4 FY’12 and Rs.5,071 crores (US$912 million) in Q1 FY’12.
Group consolidated
turnover of Rs.33,821 crores
(US$6.08 billion) in Q1 FY’13 declined by 0.5% from
the Rs.33,999 crores
(US$6.11billion) in Q4 FY’12 but was up
by 2.5% from the Rs.33,000 crores (US$5.93 billion) in Q1
FY’12.
The Group’s steel
deliveries declined by 8.7% to 5.68 million tonnes in Q1 FY’13 compared to
the 6.22 million tonnes in Q4 FY’12 and by 6.2% from the 6.05 million tonnes in
Q1 FY’12.
Net debt at
the end of June 2012 increased to Rs.54,020 crores (US$9.71 billion) compared
to Rs.47,657 crores (US$8.57 billion) at the end of March 2012.
Turnover at
Tata Steel India in Q1 FY’13 was Rs.8,908 crores (US$1.6 billion), down by
6% from the Rs.9,479 crores (US$1.7 billion) in Q4 FY'12 but up by 13.3% from
the Rs.7,860 crores (US$1.41 billion) in Q1 FY’12.
EBITDA of Rs.2,791 crores (US$502 million) in Q1 FY’13 was
6.2% lower than the Rs.2,975 crores (US$535 million) in Q4 FY'12 and down by
11.6% from the Rs.3,156 crores (US$567 million) in Q1 FY’12. The EBITDA margin
was stable compared to the previous quarter.
Deliveries at 1.59 million tonnes in Q1 FY’13 declined by 10.3%
from the 1.77 million tonnes in Q4 FY’12 but remained stable compared to Q1
FY’12.
Turnover at
Tata Steel Europe in Q1 FY’13 was Rs.20,406 crores (US$3.67 billion)
compared to the Rs.19,923 crores (US$3.58 billion) in Q4 FY'12 and Rs.20,535
crores (US$3.69 billion) in Q1 FY’12. Q1 FY’13 sales declined by 4.9% from Q4 FY'12 and by 15% from Q1 FY’12, as per Tata Steel Europe’s
reporting currency.
EBITDA of Rs.620 crores
(US$111 million) in Q1 FY’13 was up from the
Rs.146 crores (US$26 million) in
Q4 FY'12 but down from the Rs.1,907 crores (US$343 million) in Q1 FY’12.
EBITDA margin improved on a sequential basis.
Deliveries declined by 9.5% to 3.21 million tonnes in Q1 FY’13
compared to the 3.55 million tonnes in both Q4 FY’12 and Q1 FY’12.
Turnover at
Tata Steel South East Asia in Q1 FY’13 was Rs.3,372 crores (US$606 million), up by 7%
from the Rs.3,152 crores (US$567 million) in Q4 FY'12 and up by 1.2% from the Rs.3,332
crores (US$599 million) in Q1 FY’12.
EBITDA of Rs.95 crores
(US$17 million) in Q1 FY’13 was 10.5%
lower than the Rs.106 crores (US$19
million) in Q4 FY'12 but up by 6.1% from the Rs.89 crores (US$16 million) in Q1
FY’12.
The EBITDA margin declined slightly on a sequential basis.
Deliveries declined by 0.8% to 0.72 million tonnes in Q1 FY’13
compared to the 0.73 million tonnes in Q4 FY’12 and by 7.7% from the 0.78
million tonnes in Q1 FY’12.
Consolidated
financial results summary
(under Indian GAAP) for the quarter ending 30 June’12
All figures in US$ million, unless specified
|
HIGHLIGHTS(inUS$ Mns)
|
Q1FY13
|
QoQ%Dif
|
Q4FY12
|
YoY%Dif
|
Q1FY12
|
|
Steel Deliveries (mnTn)
|
5.68
|
-8.68
|
6.22
|
-6.12
|
6.05
|
|
Turnover
|
6,080
|
-0.52
|
6,112
|
2.48
|
5,933
|
|
EBITDA
|
644
|
4.72
|
615
|
-29.39
|
912
|
|
EBITDAMargin%
|
10.60%
|
4.95
|
10.10%
|
-31.17
|
15.40%
|
|
Depreciation
|
235
|
19.29
|
197
|
13.53
|
207
|
|
NetFin.Charges
|
140
|
-15.15
|
165
|
-4.11
|
146
|
|
Profit Before Taxes
|
255
|
20.28
|
212
|
-77.9
|
1,154
|
|
PBTMargin%
|
4.20%
|
20
|
3.50%
|
-78.35
|
19.40%
|
|
Cons.Profit
|
107
|
37.18
|
78
|
-88.87
|
961
|
|
PATMargin%
|
1.80%
|
38.46
|
1.30%
|
-88.89
|
16.20%
|
For the purposes of converting all financial numbers to
US$ for all comparable periods, a US$/₹ exchange rate of 55.625 has been used throughout this document.
OTHER DETAILS :
During the quarter under review, Tata Steel reported a
total expenditure of Rs 31,725.90 crore; Its interest burden is down to Rs 969
crore from Rs 1,012.95 crore in the same period a year ago.
On stand-alone basis (Tata Steel's Indian operations)
the company reported a decline of 38.88 per cent in its net profit to Rs
1,356.56 crore in the April-June quarter as compared to Rs 2,219.43 crore of
the corresponding quarter of the previous fiscal.Its stand-alone net sales were
at Rs 8,820.19 crore, up 13.19 per cent.
Tata Steel Managing Director Mr HM Nerurkar said:
“Indian operations posted robust performance against the backdrop of weakening
demand and increased competition. Market challenges have made us focus on
tightening of costs, improving product-mix and ensuring that the ramp up of our
brownfield expansion takes place by the year-end. Downstream linkages of Indian
operations are expected to provide the required depth to our business. South East Asian operations are
being strengthened on the back of operational and marketing initiatives,
leading to better results.”
Tata Steel Europe MD & CEO Dr Karl-Ulrich Köhler
said: “Our financial performance continued to improve as raw material cost
pressure eased further and strategic cost initiatives yielded further benefits.
At Port Talbot, the blast furnace rebuild is progressing on schedule and other
operational problems that arose early in 2012 were largely resolved. European
steel demand is lower than expected and
prices have weakened. We continue to seek to mitigate the effects of this with
tight cost control and emphasis on increased product differentiation.”
Financing
Developments:
In April 2012 Non-Convertible Debentures for a tenor of
10 years worth Rs.1,500 crores were issued on a private placement basis.
Corporate
Developments:
In July 2012 Tata Steel agreed to sell its 50% stake in
Dutch ferrous and non-ferrous metals recycler HKS Scrap Metals Co (HKS) to Euro
Scrap Alliance (ESA), a subsidiary of TSR of Germany, in line with Tata Steel’s
strategy of focusing on its core activities.
Business
Outlook
Global steel capacity utilisation remains around 80%, implying significant overcapacity
and downward pressure on steel prices
Raw material prices are falling sharply – should help non-integrated steel manufacturers
Steelmakers are attempting price increases, however falling raw material prices
may drag steel prices further
Chinese steel exports are on the rise as domestic demand falters
India’s domestic steel demand outlook remains soft however supply issues
(mostly with secondary manufacturers) have balanced the situation. Consumption
has increased at a healthy rate in the first quarter of the year
Sovereign debt issues and austerity measures in the Eurozone are hurting
consumer sentiment and steel demand
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