15 February 2011
Corporate News

Tata Steel’s Profit after tax doubles for the quarter

Tata Steel Limited today declared Consolidated Financial Results for the nine months and three months ending December 31, 2010.

Group Performance Highlights:

  • Tata Steel Group’s Profit after tax for Q3 FY’11 at Rs1,003 crores (US$224 million) was around 112% higher than the profit of Rs473 crores (US$106 million) in the corresponding period of the previous year (Q3 FY’10). During the first nine months of the financial year 2010-11 (9M FY’11), the Group recorded Profit after tax (after minority interest and share of profit of associates) of Rs4,807 crores (US$1.08 billion) compared to a loss of Rs4,443 crores (US$994 million) in 9M FY’10, an improvement of Rs9,250 crores (US$2.07 billion). 
  • Group EBITDA in 9M FY’11 was Rs12,399 crores (US$2.8 billion) compared to Rs4,007 crores (US$896 million) in 9M FY’10.  Group EBITDA in Q3 FY’11 at Rs3,374 crores (US$755 million) was 0.8% lower than the Rs3,401 crores (US$761 million) recorded in Q3 FY’10.
  • Group consolidated turnover in 9M FY’11 of Rs84,929 crores (US$19 billion) was 13.4% up from the Rs74,889 crores (US$16.75 billion) in 9M FY’10.  The consolidated turnover at Rs29,089 crores (US$6.5 billion) in Q3 FY’11 was 11% up from the Rs26,202 crores (US$5.86 billion) in Q3 FY’10 on account of higher average realisations across the Group compared with the corresponding period.
  • The Group’s steel deliveries in 9M FY’11 fell 1.7% to 17 million tonnes as compared to 17.3 million tonnes in 9M FY’10 due to lower deliveries at the European operations. Steel deliveries fell 5.7% to 5.68 million tonnes in Q3 FY’11 from the 6.02 million tonnes in Q3 FY’10. The third quarter of FY’11 witnessed lower deliveries in Europe and Thailand due to weak demand compensated by higher deliveries at NatSteel, primarily from its unit in Xiamen, China.
  • Net Finance Charges for the Group at Rs743 crores (US$166 million) during the December quarter showed an increase of Rs80 crores (US$18 million) over Q2 FY’11 mainly on account of higher interest due to higher working capital requirements in Europe due to increased raw material prices.
  • Gross and Net Debt: The Group’s gross debt at the end of December 2010 stood at Rs59,085 crores (US$13.22 billion). The Group’s net debt at the end of December 2010 stood at Rs52,836 crores (US$11.82 billion).

Read the full press release as a pdf