• Choose Language
  • Tata Steel reports Consolidated Financial Results for the nine months and third quarter ended December 31, 2012

    13 Feb 2013 | Corporate News

    Group Performance Highlights

    The Indian operations recorded Profit after tax of Rs.3,754 crores (US$683 million) in 9M FY’13 compared to Rs.5,136 crores (US$934 million) in 9M FY’12. Profit after tax in Q3 FY’13 was Rs.1,046 crores (US$190 million) compared to Rs.1,351 crores (US$246 million) in Q2 FY’13 and Rs.1,421 crores (US$259 million) in Q3 FY’12. The turnover recorded for 9M FY’13 was Rs.27,429 crores (US$4,989 million) compared to Rs.24,454 crores (US$4,448 million) in 9M FY’12. EBITDA for 9M FY’13 of Rs.7,984 crores (US$1,452 million) compared to Rs.8,584 crores (US$1,561 million) in 9M FY’12. Q3 FY’13 EBITDA was Rs.2,525 crores (US$459 million) compared to Rs.2,669 crores (US$485 million) in Q2 FY’13 and Rs.2,618 crores (US$476 million) in Q3 FY’12. Deliveries totalled 1.89 million tonnes in Q3 FY’13 compared to 1.73 million tonnes in Q2 FY’13 and 1.62 million tonnes in Q3 FY’12.

    The European operations recorded 9M FY’13 turnover of Rs.58,846 crores (US$10,703 million) and EBITDA of Rs.152 crores (US$28 million) compared to turnover of Rs.62,230 crores (US$11,319 million) and EBITDA of Rs.1,632 crores (US$297 million) for 9M FY’12. Q3 FY’13 EBITDA was a loss of Rs.428 crores (US$78 million) compared to the Q2 FY’13 EBITDA loss of Rs.40 crores (US$7 million) and the EBITDA loss of Rs.781 crores (US$142 million) in Q3 FY’12.  Deliveries totalled 3.02 in million tonnes in Q3 FY’13 compared to 3.42 million tonnes in Q2 FY’13 and 3.35 million tonnes in Q3 FY’12.

    The South East Asian operations 9M FY’13 turnover was Rs.10,343 crores (US$1,881 million) and EBITDA Rs.259 crores (US$47 million) compared to turnover of Rs.9,558 crores (US$1,738 million) and EBITDA of Rs.107 crores (US$20 million) for 9M FY’12. Q3 FY’13 EBITDA was Rs.144 crores (US$26 million) compared to Rs.20 crores (US$4 million) in Q2 FY’13 and the EBITDA loss of Rs.8 crores (US$1 million) in Q3 FY’12.  Deliveries totalled 0.82 million tonnes in Q3 FY’13 compared to 0.77 million tonnes in Q2 FY’13 and 0.66 million tonnes in Q3 FY’12.

    The Group’s steel deliveries in 9M FY’13 totalled 17.57 million tonnes compared to 18.01 million tonnes in 9M FY’12. Deliveries in Q3 FY’13 were 5.83 million tonnes versus 6.07 million tonnes in Q2 FY’13 and 5.84 million tonnes in Q3 FY’12.

    Group consolidated turnover was Rs.1,00,061 crores (US$18,200 million) in 9M FY’13 compared to Rs.98,901 crores (US$17,989 million) in 9M FY’12. Q3 FY’13 turnover was Rs.32,107 crores (US$5,840 million) compared to Rs.34,133 crores (US$6,208 million) in Q2 FY’13 and Rs.33,103 crores (US$6,021 million) in Q3 FY’12.

    Group EBITDA in 9M FY’13 was Rs.8,286 crores (US$1,507 million) compared to Rs.10,114 crores (US$1,840 million) in 9M FY’12. EBITDA in Q3 FY’13 was Rs.2,252 crores (US$410 million) compared to Rs.2,453 crores (US$446 million) in Q2 FY’13 and Rs.2,023 crores (US$368 million) in Q3 FY’12.

    Tata Steel Group’s profit after tax (after minority interest and share of profit of associates) for the nine months of the financial year 2012-13 (9M FY’13) was a loss of Rs.529 crores (US$96 million) compared to the profit of Rs. 4,956 crores (US$901 million) in the nine months of the previous year (9M FY’12). The 9M FY’12 figure included one-off gains of Rs.3,362 crores (US$611 million) on sale of investments and Rs.685 crores (US$125 million) from the TCP arbitration settlement. The Group recorded a loss of Rs.763 crores (US$139 million) in Q3 FY’13 compared to the loss of Rs.364 crores (US$66 million) in Q2 FY’13 and the loss of Rs.603 crores (US$110 million) in Q3 FY’12.

    Net debt at the end of December 2012 was Rs.57,981 crores (US$10,546 million) versus Rs.47,657 crores (US$8,668 million) at the end of March 2012.

    Financial Performance Analysis:

    Consolidated financial results summary (under Indian GAAP) for the nine months and third quarter ended 31 December 2012

    All figures in US$ million, unless specified

    9M FY'13

    9M FY'12

    HIGHLIGHTS

    Q3 FY'13

    Q2 FY'13

    Q3 FY'12

    17.57

    18.01

    Steel Deliveries (Mn tons)

    5.83

    6.07

    5.84

    18,200

    17,989

    Turnover

    5,840

    6,208

    6,021

    1,507

    1,840

    EBITDA

    410

    446

    368

    8.3%

    10.2%

    EBITDA Margin (%)

    7.0%

    7.2%

    6.1%

    747

    623

    Depreciation

    266

    243

    212

    474

    443

    Net Finance Charges

    175

    157

    151

    262

    1,347

    Profit before Taxes (after Exceptional Items)       -40

    45

             -10

    1.4%

    7.5%

    PBT Margin (%)     -0.7%

    0.7%

            -0.2%
         -96

    901

    Profit after Taxes, Minority Interest and Share of Associates     -139        -66         -110
         -0.5%

    5.0%

    PAT Margin (%)      -2.4%        -1.1%        -1.8%

    For the purposes of converting all financial numbers to US$ for all comparable periods,a US$/Rs. exchange rate of 54.98 has been used throughout this document.

    Executive Comment

    Tata Steel Managing Director Mr HM Nerurkar said: “The Indian operations performed steadily despite the overall weak steel demand situation in India. Our ability to achieve sequential volume growth in a difficult market reaffirms the strength of our distribution channels and customer orientation strategy. Government reform initiatives and the reduction in interest rates should help boost steel demand.  During the quarter, we continued to ramp up the production from Jamshedpur and we expect to achieve rated capacity utilisation levels by the end of current financial year. The company remains focused on the Kalinganagar Project execution and we have mobilised significant resources on site to achieve the project timelines. ”

    Dr Karl-Ulrich Köhler, MD & CEO of Tata Steel in Europe said: “Sliding demand was a key problem for European steelmakers in 2012 and this was reflected in our December quarter deliveries. With the restart of the No 4 blast furnace at Port Talbot this week, we have regained our normal operational and logistical flexibility, enabling us to improve our delivery performance and our service to customers. This, together with the improvements we continue to make in our product range and our customer relationships, will further strengthen our ability to make a difference to our customers' business performance.”

    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