09 February 2012
Corporate News

Tata Steel reports Consolidated Financial Results for the nine months and third quarter ending December 31, 2011

Group Performance Highlights:

  • Tata Steel Group recorded Profit after tax (after minority interest and share of profit of associates) of Rs.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 Rs.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 Rs.603 crores (US$114 million) in Q3 FY’12 compared to a net profit of Rs.1,003 crores (US$189 million) in Q3 FY’11.
  • Group EBITDA in 9M FY’12 was Rs.13,242 crores (US$2.5 billion) compared to Rs.12,399 crores (US$2.34 billion) in 9M FY’11. EBITDA in Q3 FY’12 came in at Rs.1,940 crores (US$366 million) compared to Rs.3,374 crores (US$636 million) recorded in Q3 FY’11.
  • Group consolidated turnover in 9M FY’12 was Rs.98,901 crores (US$18.64 billion), up from the Rs.84,929 crores (US$16.01 billion) recorded in 9M FY’11. The consolidated turnover for Q3 FY’12 was Rs.33,103 crores (US$6.24 billion) compared to the Rs.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 Rs.50,528 crores (US$9.52 billion) compared to Rs.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 Rs.24,454 crores (US$4.61 billion) from Rs.21,056 crores (US$3.97 billion) in 9M FY’11. Q3 FY’12 sales of Rs. 8,382 crores (US$1.58 billion) were up by 13.3% from the Rs.7,397 crores (US$1.39 billion) of Q3 FY’11 and up 2.1% from the Rs.8,212 crores (US$1.55 billion) of Q2 FY’12.

    EBITDA in 9M FY’12 at Rs.9,053 crores (US$1.71 billion) was slightly down by 1.1% from Rs.9,158 crores (US$1.73 billion) in the previous year. Q3 FY’12 EBITDA of Rs.2,604 crores (US$491 million) was down by 8% from the Rs.2,832 crores (US$534 million) of Q3 FY’11 and down by 6.8% from the Rs.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 Rs.62,230 crores (US$11.73 billion) from the Rs.52,356 crores (US$9.87 billion) in 9M FY’11. Q3 FY’12 sales of Rs.20,535 crores (US$3.87 billion) were 17.2% up from the Rs.17,523 crores (US$3.3 billion) of Q3 FY’11, but down 3.0% from the Rs.21,160 crores (US$3.99 billion) of Q2 FY’12.

    EBITDA for 9M FY’12 came in at Rs.1,631 crores (US$308 million), down by 37.9% from Rs.2,626 crores (US$495 million) in 9M FY’11. There was an EBITDA loss of Rs.781 crores (US$147 million) in Q3 FY’12 compared to positive EBITDA of Rs.392 crores (US$74 million) in Q3 FY’11 and Rs.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.

Financial Performance Analysis:

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

Profit before Taxes (after Exceptional Items)

(3)

296

197

7.5

8.3

PBT Margin (%)

(0.05)

5.4

3.2

934

906

Profit after Taxes, Minority Interest and Share of Associates

(114)

189

40

5.0

5.7