13 August 2012
Corporate News
Tata Steel reports 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$78 million) 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. The 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.

Financial Performance Analysis:
Consolidated financial results summary (under Indian GAAP) for the quarter ending 30 June’12

All figures in US$ million, unless specified HIGHLIGHTS 

Q1 FY'13 

Q4 FY'12 

Q1 FY'12 

Steel Deliveries (mn tonnes)

5,676

6,216

6,053

Turnover

6,080

6,112

5,933

EBITDA

644

615

912

EBITDA Margin (%)

10.6%

10.1%

15.4%

Depreciation

235

197

207

Net Finance Charges

140

165

146

Profit before Taxes (after Exceptional Items)

255

212

1,154

PBT Margin (%)

4.2%

3.5%

19.4%

Profit after Taxes, Minority Interest and Share of Associates

107

78

961

PAT Margin (%)

1.8%

1.3%

16.2%

For the purposes of converting all financial numbers to US$ for all comparable periods, a US$/Rs. exchange rate of 55.625 has been used throughout this document.

 

Executive Comment 

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 `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.

Disclaimer

Statements in this press release describing the Company’s performance may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to the Company’s operations include, among others, economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in Government regulations, tax laws and other statutes and incidental factors.

 

For investor enquiries contact: 

Praveen Sood 
Tel: + 91 22 6665 7306
email: p.sood@tatasteel.com

Subhra Kanti Das 
Tel: + 91 22 6665 7382
email: subhra.das@tatasteel.com

For media enquiries contact: 

Charudatta Deshpande 
Tel: +91 98200 39756
email: cv.deshpande@tatasteel.com

Bob Jones 
Tel: + 44 207 717 4532
email: bob.jones@tatasteel.com

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