TATA STEEL Limited - RESULTS FOR THE SECOND QUARTER ENDED SEP'2017 - Q2 FY 2017-18

 

TATA STEEL

Limited

RESULTS FOR THE

SECOND QUARTER ENDED SEP'2017

The results of TATA STEEL Limited for the second quarter ended Sep'2017 are placed here under.


Declaration : This does not constitute a Buy/Sell/Hold Recommendation.

TATA STEEL	Sep '17	Jun '17	Mar '17	Dec '16	Sep '16
Net Sales	32,101.03	29,386.76	33,424.09	27,843.92	26,291.86
Other Operating Income	363.11	170.01	471.91	112.6	79.09
Total Income	32,464.14	29,556.77	33,896.00	27,956.52	26,370.95
EXPENDITURE
Consumption of Raw Materials	10,354.59	10,279.43	9,957.64	8,087.97	7,717.23
Purchase of Traded Goods	2,626.61	2,757.70	2,784.80	2,944.84	2,689.08
Increase/Decrease in Stocks	1,308.42	-1,967.28	-295.31	-1,534.64	-999.47
Power & Fuel	--	--	--	1,236.25	1,208.28
Employees Cost	4,294.10	4,303.86	4,216.94	4,331.65	4,518.25
Depreciation	1,473.28	1,501.13	1,589.22	1,379.74	1,467.69
Other Expenses	9,159.75	9,209.05	10,206.72	9,351.19	8,267.59
P/L Before Other Inc., Int., Excpt. Items & Tax	3,247.39	3,472.88	5,435.99	2,159.52	1,502.30
Other Income	253.21	155.47	152.17	130.07	108.42
P/L Before Int., Excpt. Items & Tax	3,500.60	3,628.35	5,588.16	2,289.59	1,610.72
Interest	1,349.93	1,343.71	1,263.12	1,387.40	1,351.06
P/L Before Exceptional Items & Tax	2,150.67	2,284.64	4,325.04	902.19	259.66
Exceptional Items	-44.65	-616.79	-4,068.59	-28.55	-59.29
P/L Before Tax	2,106.02	1,667.85	256.45	873.64	200.37
Tax	1,137.97	740.53	975.96	698.41	363.35
P/L After Tax from Ordinary Activities	968.05	927.32	-719.51	175.23	-162.98
Extra Ordinary Items	29.93	-12.13	-451.27	56.92	122.66
Net Profit/(Loss) For the Period	997.98	915.19	-1,170.78	232.15	-40.32
Share Of P/L Of Associates	19.8	5.9	2.76	-0.25	-9.06
Net P/L After M.I & Associates	1,017.78	921.09	-1,168.02	231.9	-49.38
Equity Share Capital	970.24	970.24	970.24	970.24	970.24
Basic EPS	9.73	9.04	-12.48	2.09	-1.11
Diluted EPS	9.73	9.04	-12.48	2.09	-1.11
MP	693
PE	17.81

TATA STEEL LIMITED - FIRST QUARTER RESULTS - Q1 FY 2013 - deliveries down; turnover flat; Cons.Profit down YoY.

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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NEWS & VIEWS TODAY = 08th, JUNE, 2012 = RIL TO INVEST Rs.1 lakh cr IN VARIOUS PROJECTS = SET TO DOUBLE PROFITS ( IN 4-5 YEARS) = GLOBAL INVESTORS MEET (KARNATAKA)2012 = TATAs ANNOUNCE A 6 Mn TONNE PLANT IN KARNATAKA

NEWS & VIEWS TODAY

08th, JUNE, 2012

RIL TO INVEST Rs.1 lakh cr IN VARIOUS PROJECTS

SET TO DOUBLE PROFITS ( IN 4-5 YEARS)

GLOBAL INVESTORS MEET (KARNATAKA)2012

TATAs ANNOUNCE A 6 Mn TONNE PLANT IN KARNATAKA

1.    NEWS :RIL is facing a huge downside in its gas output from KG-D6 fields. Its profits are coming down. But, on the positive side, RIL has huge cash reserves, which if it invests in the right businesses can yield huge profits. Now, the question is – is RIL identifying such highly profitable ventures with reasonable accuracy?

What are its targets ?

RETAIL BUSINESS : set to expand by 6 times in about 4 years.

SHALE GAS BUSINESS FROM US : Ten fold increase targeted

KG D6 FIELDS : Reaching 60million cubic meters per day – on a sustained basis

2 coal bed methane projects in MP:  Output to begin in 2015, if approvals are received

4G COMMERCIAL ROLL-OUT : RIL plans to provide end-to-end solutions that will address the complete Digital Value Chain. We have to watch for the complete Roll-out Plans.

Over Rs.1 Lakh crores of Investment is planned – to double the profits from current levels in next 5 years. While KG D6  was a disappointment for RIL,    Others are faring reasonably well. But, which is the next biggest opportunity? Is it 4 G or Retail? We need to wait and watch.

The second point is – all plans are for the long term – minimum 3-4 years. What is there for investors in the next 2 quarters? That – unfortunately, is not clear as yet.

2.    GLOBAL INVESTORS MEET (KARNATAKA) 2012 : TATA steel announced the plan to set up a Rs.30,000 Cr steel Plant (6 million tonne per annum capacity)in Karnataka,  at this Global Investors meet organized by Karnataka Government. Aditya Birla Group also announced Rs.7000 cr investment in the state – including a cement plant. The state is aiming to sign MOUs worth Rs.6. lakh crores at this meet. If Politics take Back seat, Progress walks in automatically.

Karnataka must ensure that all the MOUs – will actually see fruition – and for that, it has to adopt the Modi style of FAST TRACK FUNCTIONING.

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TATA STEEL = QTRLY RESULTS = Q3 FY 2012 = Q/E DEC,2011 = CON-NET SALES UP 15.23%; NPT DOWN 160% YoY

Tata Steel Limited

NSE Symbol        TATASTEEL

TATA STEEL has declared  adverse results (On consolidated Basis)  for the third quarter ending Dec, 2011.

Net Sales in Q3 FY 12 stands at Rs.32964.15 Cr compared to Rs.32507.45 Cr in Q2 FY 12 ( up by 1.40%) – and Rs.28606.15 Cr in Q3 FY 11 (Up by 15.23%).

Raw Materials in Q3 FY 12 stands at Rs.13869.83 Cr compared to Rs.12012.51 Cr in Q2 FY 12 ( up by15.46%) and Rs.11301.19 Cr in Q3 FY 11 (Up by 22.73%).

Total Expenditure        in Q3 FY 12 stands at Rs.32549.77 Cr compared to Rs. 31156.65 Cr in Q2 FY 12 ( up by 4.47%) and Rs.26791.25 Cr in Q3 FY 11 (up by 21.49%).

Profit from Operations in Q3 FY 12 stands at Rs.553.30 Cr compared to Rs.1641.24 Cr in Q2  FY 12 (down by -66.29%)and Rs.2298.20 Cr in Q3 FY 11 (down by -75.92%).

Profit before tax in Q3 FY 12 stands at Rs(-)15.33Cr compared to Rs.1045.57 Cr in Q2 FY 12 (down by -101.47%) and Rs.1572.94 Cr in Q3 FY 11 (down by -100.97%).

Tax Expense in Q3 FY 12 stands at Rs.672.03 Cr – compared to Rs.906.54 Cr in Q2 FY 12 (down by -25.87%); and Rs.624.04 Cr (Up By 7.69%) in Q3 FY 11.

Net Profit in Q3 FY 12 stands at Rs(-)687.36 Cr – compared to Rs.139.03 Cr in Q2 FY 12 (down by -594.40%); and Rs.948.90 Cr  in Q3 FY 11 (down by -172.44%).

Consolidated NPT  in Q3 FY 12 stands at Rs(-)602.67Cr – compared to Rs.212.43 Cr in Q2 FY 12 (down by -383.70%); and Rs.1003.02 Cr in Q3 FY 11 (down by -160.09%).

Basic EPS after EI is Rs(-)6.76 in Q3 FY 12;Rs.1.75 in Q2 FY 12; and Rs.11.13 in Q3 FY 11.

Future progress in Europe depends on quick recovery in European operations, for which the European Head is taking quick measures. Indian operations and sales are reasonably healthy - but will pick up further as and when RBI relaxes its monetary Policy.

SOME HIGH LIGHTS

Tata Steel Group recorded Profit after tax (after minority interest and share of profit of associates) of `4,956 crores (US$934 million) during the first nine months of the financial year 2011-12 (9M FY’12) compared to a profit of `4,807 crores (US$906 million) in the first nine months of the financial year 2010-11 (9M FY’11).

The Group registered a net loss of `603 crores (US$114 million) in Q3 FY’12 compared to a net profit of `1,003 crores (US$189 million) in Q3 FY’11.

Group EBITDA in 9M FY’12 was `13,242 crores (US$2.5 billion) compared to `12,399 crores (US$2.34 billion) in 9M FY’11.

EBITDA in Q3 FY’12 came in at `1,940 crores (US$366 million) compared to `3,374 crores (US$636 million) recorded in Q3 FY’11.

Group consolidated turnover in 9M FY’12 was `98,901 crores (US$18.64 billion), up from the `84,929 crores (US$16.01 billion) recorded in 9M FY’11.

The consolidated turnover for Q3 FY’12 was `33,103 crores (US$6.24 billion) compared to the `29,089 crores (US$5.48 billion) in Q3 FY’11.

The Group’s steel deliveries in 9M FY’12 rose by 0.8% to 18.01 million tonnes compared to 17.86 million tonnes in 9M FY’11.

Steel deliveries in Q3 FY’12 fell slightly to 5.84 million tonnes from 5.9 million tonnes in Q3 FY’11.

Net debt at the end of December 2011 was `50,528 crores (US$9.52 billion) compared to `46,627 crores (US$8.79 billion) at the end of March 2011.

Turnover in Tata Steel India in 9M FY’12 increased by 16.1% to `24,454 crores (US$4.61 billion) from `21,056 crores (US$3.97 billion) in 9M FY’11.

Q3 FY’12 sales of `8,382 crores (US$1.58 billion) were up by 13.3% from the `7,397 crores (US$1.39 billion) of Q3 FY’11 and up 2.1% from the `8,212 crores (US$1.55 billion) of Q2 FY’12.

EBITDA in 9M FY’12 at `9,053 crores (US$1.71 billion) was slightly down by 1.1% from `9,158 crores (US$1.73 billion) in the previous year.

Q3 FY’12 EBITDA of `2,604 crores (US$491 million) was down by 8% from the `2,832 crores (US$534 million) of Q3 FY’11 and down by 6.8% from the `2,793 crores (US$526 million) of Q2 FY’12. The 9M FY’12 EBITDA margin was nevertheless healthy at 37%.

 Turnover in Tata Steel Europe in in 9M FY’12 increased by 18.9% to `62,230 crores (US$11.73 billion) from the `52,356 crores (US$9.87 billion) in 9M FY’11.

Q3 FY’12 sales of `20,535 crores (US$3.87 billion) were 17.2% up from the `17,523 crores (US$3.3 billion) of Q3 FY’11, but down 3.0% from the `21,160 crores (US$3.99 billion) of Q2 FY’12.

EBITDA for 9M FY’12 came in at `1,631 crores (US$308 million), down by 37.9% from `2,626 crores (US$495 million) in 9M FY’11.

There was an EBITDA loss of `781 crores (US$147 million) in Q3 FY’12 compared to positive EBITDA of `392 crores (US$74 million) in Q3 FY’11 and `505 crores (US$95 million) in Q2 FY’12. The Q3 FY’12 loss was mainly due to mark-to-market provisions on stock.

The 2.9 mtpa brownfield expansion in Jamshedpur is expected to be commissioned in Q4 FY’12.

Consolidated Financial Results summary

(under Indian GAAP) for

the nine months ending December 2011

All figures in US$ million, unless specified

9M FY’12	9M FY’11	HIGHLIGHTS	Q3 FY’12	Q3 FY’11	Q2 FY’12
18.01	17.86	Steel Deliveries (Mn tons)	5.84	5.9	6.12
18,639	16,006	Turnover	6,239	5,482	6,181
2,496	2,337	EBITDA	366	636	555
13.4	14.6	EBITDA Margin (%)	5.9	11.6	9.0
645	612	Depreciation	219	212	209
407	378	Net Finance Charges	133	140	135
1,403	1,334	P B T (after EI)	(3)	296	197
7.5	8.3	PBT Margin (%)	(0.05)	5.4	3.2
934	906	Profit after Taxes, M/I & S/O/A	(114)	189	40
5.0	5.7	PAT Margin (%)	(1.8)	3.4	0.6

For the purposes of converting all financial numbers into US$ for all comparable periods, a US$/` exchange rate of 53.06 has been used throughout this document.

Executive Comment

Tata Steel Managing Director Mr HM Nerurkar said: “Our Indian operations delivered steady performance during the last quarter, with flat product volumes increasing 3% year-on-year. Long product volumes dropped marginally due to planned shutdowns, but we increased our market reach, recording our highest ever quarterly retail long products sales. Company-wide cost saving measures benefitted margins in an otherwise difficult market. We expect steel demand to improve on expectations of the RBI relaxing monetary policy to aid growth and investment. An improvement in operating performance, coupled with a number of new marketing initiatives, should increase profitability at the South East Asian operations.”

Tata Steel Europe MD & CEO Dr Karl-Ulrich Köhler said: “The December quarter marked the height of the cyclical cost-price squeeze. Tata Steel was one of the first steel companies in Europe last year to start adjusting its output and configuration to the slowdown in the recovery. The turnaround programme in our Long Products business is well on course for completion by the end of the financial year, as planned. Similar measures have been taken elsewhere in the Company, most recently at some of our tubes operations in the Netherlands and the UK. Through our Step Up & Save initiative we are accelerating cash conservation in expectation of muted but stable demand in our core markets in 2012.”

Financing Developments:

On January 20, 2012, Tata Sons exercised the option to convert 12 million warrants into Ordinary Shares of the Company at a price of `594/- per share. The Committee of Directors at its meeting held on January 20, 2012, approved the allotment to Tata Sons Ltd of 12 million Ordinary Shares of `10/- each at a premium of `584/- per share.

ANNOUNCEMENTS BY TATA STEEL

09-02-2012 Tata Steel  has proposed to seek the approval of the members of the Company thru' postal ballot pursuant to Section 192A of the Companies Act, 1956, for the following: (a) Increase in the borrowing limit under Section 293 (1)(d) of the Companies Act, 1956 from Rs.40,000 crores to Rs.50,000 crores or up to the aggregate of the paid up capital and free reserves of the Company, whichever is higher; and (b) Creation of charges under Section 293 (1)(a) of the Companies Act, 1956 on the movable and immovable properties of the Company, both present and future, in respect of borrowings in terms of (a) above.

27-01-2012 Press Release issued by Tata Steel Europe Limited, London, UK dated January 25, 2012 titled "Tata Steel proposes recovery plan for Tubes business in Europe".

19-01-2012 Press Release issued by Tata Steel Europe Limited, London, UK dated January 18, 2012, titled "Tata Steel secures major profiled steel plate order for Siemens wind towers".

CONSOLIDATED RESULTS TABLE

TATA STEEL	Q3FY12	Q2FY12	%DIF1	Q3FY11	%DIF2
Net Sales	3296415	3,250,745.00	1.40	2,860,615.00	15.23
Other Oprtng Income	13892	29,044.00	-52.17	48,330.00	-71.26
Increase in SIT/WIP	-37219	106,663.00	-134.89	-15,018.00	147.83
Raw Materials	1386983	1,201,251.00	15.46	1,130,119.00	22.73
Traded goods	526511	432,172.00	21.83	376,901.00	39.69
Employees Cost	429382	398,113.00	7.85	360,872.00	18.98
Depreciation	116401	110,878.00	4.98	112,641.00	3.34
Other Expenditure	832919	866,588.00	-3.89	713,610.00	16.72
Total Expenditure	3254977	3,115,665.00	4.47	2,679,125.00	21.49
Profit from Operations	55330	164,124.00	-66.29	229,820.00	-75.92
Other Income	13830	12,044.00	14.83	-10,433.00	-232.56
Interest	70693	71,611.00	-1.28	74,323.00	-4.88
Exceptional items	-	-		-12,230.00
Profit before tax	-1533	104,557.00	-101.47	157,294.00	-100.97
Tax Expense	67203	90,654.00	-25.87	62,404.00	7.69
Net Profit	-68736	13,903.00	-594.40	94,890.00	-172.44
Minority Interest	-6405	-5,418.00	18.22	-3,802.00	68.46
Shares of Associates	-2064	-1,922.00	7.39	-1,610.00	28.2
Consolidated NPT	-60267	21,243.00	-383.70	100,302.00	-160.09
Face Value (in Rs.)	10	10	0.00	10	0
Paid-up Equity	95874	95,874.00	0.00	90,174.00	6.32
Basic EPS after EI(Rs.)	-6.76	1.75	-486.29	11.13	-160.74
Diluted EPS after EI	-6.76	1.75	-486.29	10.29	-165.69
Public Holding (%)	68.6	68.49	0.16	-

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