Tata Steel Limited today declared Audited Consolidated Group Financial Results for the financial year ending March 31 2010.
Group Performance Highlights:
- Tata Steel Group reported a major improvement in profitability in the second half (H2 FY’10), with consolidated EBITDA of Rs. 8,734 crores (US$ 1,944 million) almost 15 times higher than the Rs. 606 crores (US$ 135 million) reported in H1 FY’10. Group EBITDA in the fourth quarter (Q4 FY’10) at Rs. 5,333 crores (US$ 1,187 million) rose 57% over Q3 FY’10 (Rs. 3,401 crores, US$ 757 million).
- The Group recorded Profit After Tax (after minority interest and share of profit of associates) of Rs. 2,907 crores (US$ 647 million) in H2 FY’10 compared to a loss of Rs. 4,916 crores (US$ 1,095 million) in H1 FY’10. PAT in Q4 FY’10 at Rs. 2,434 crores (US$ 542 million) was 416% higher than the Rs. 473 crores (US$ 105 million) reported in Q3 FY’10.
- Group EBITDA of Rs. 9,340 crores (US$ 2,079 million) in FY’10 compared to Rs. 18,497 crores (US$ 4,118 million) in FY’09. In FY’10 the Group reported a Loss After Tax (after minority interest and share of profit of associates) of Rs. 2,009 crores (US$ 447 million) compared to a Profit After Tax (after minority interest and share of associates) of Rs. 4,950 crores (US$ 1,102 million) in FY’09.
- Tata Steel India reported an EBITDA margin of 44% in H2 FY’10, up from 33% in H1 FY’10 on the strength of robust demand, which led to higher prices, and the Jamshedpur plant operating at higher than rated capacity.
- Tata Steel Europe: The Group’s results were enhanced by the dramatic turnaround in the performance of Tata Steel Europe, which reported positive EBITDA of Rs. 2,303 crores (US$ 513 million) in H2 FY’10 compared to an EBITDA loss in H1 FY’10 of Rs. 3,655 crores (US$ 813 million) primarily on account of a stronger order book leading to higher capacity utilisation and lower costs in the second half of FY’10.
- Steel Deliveries: Group deliveries at 24.3 million tonnes in FY’10 were 15% lower compared to deliveries in FY’09 of 28.5 million tonnes. Consolidated deliveries in H2 FY’10 at 12.7 million tonnes were 9% higher compared to consolidated deliveries in H1 FY’10 of 11.6 million tonnes.
- Turnover (Net sales plus other operating income): Consolidated Turnover for the Group at Rs.102,393 crores (US$ 22,796 million) in FY’10 was 31% lower than in FY’09 (Rs. 147,329 crores, US$ 32,800 million) because of reduced capacity utilisation in Europe due to the impact of the financial crisis in the first half compared to record high volumes and prices in H1 FY’09. Turnover in H2 FY’10 rose 10% to Rs. 53,706 crores (US$ 11,957 million) compared to Rs. 48,687 crores (US$ 10,840 million) in H1 FY’10.
- Net Finance Charges: Net Finance Charges for the Group at Rs. 3,022 crores (US$ 673 million) in FY’10 were 8% lower than in FY’09 (Rs. 3,290 crores, US$ 732 million), primarily due to lower interest charges on variable elements of senior debt facilities and repayment of debt at Tata Steel Europe.
- PBT: Consolidated Profit Before Tax in FY’10 at Rs. 31 crores (US$ 7 million) fell from Rs. 6,743 crores (US$ 1,501 million) in FY’09. In H2 FY’10 consolidated Profit Before Tax at Rs. 4,439 crores (US$ 988 million) was a reversal from the Loss Before Tax in H1 FY’10 of Rs. 4,408 crores (US$ 981 million).
- Liquidity and Net Debt: The Group continued to enjoy a strong liquidity position (including undrawn credit lines) of Rs. 14,185 crores (US$ 3,158 million) as of the end of March 2010, resulting from tight working capital management across geographies. The Group’s net debt at the end of March 2010 stood at Rs. 44,382 crores (US$ 9,881 million).