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Informist, Wednesday, Nov. 6, 2024

 

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--Tata Steel Jul-Sept consol net loss/profit INR 8.33 bln
--Analysts saw Tata Steel Jul-Sept consol net profit INR 1.39 bln
--Tata Steel Jul-Sept consol net profit INR 8.33 bln
--Tata Steel Jul-Sept consol net profit INR 8.33 bln vs INR 61.96 bln loss
--Tata Steel Jul-Sept consol revenue INR 539.05 bln vs INR 556.82 bln yr ago
--Tata Steel Apr-Sept consol net profit INR 17.93 bln vs INR 55.62 bln loss
--Tata Steel Apr-Sept consol revenue INR 1.087 tln vs INR 1.152 tln year ago

--Tata Steel consol reported EBITDA INR 62.24 bln vs INR 43.15 bln year ago

--Tata Steel consol adjusted EBITDA INR 55.22 bln vs INR 41.47 bln year ago

--Tata Steel Apr-Sept consol EBITDA INR 130.46 bln, up 25% on year

--Tata Steel Jul-Sept consol EBITDA margin around 12%

--Tata Steel Jul-Sept capex INR 48.06 bln

--Tata Steel Jul-Sept India adjusted EBITDA INR 68.89 bln vs INR 64.95 bln

--Tata Steel Jul-Sept India adjusted EBITDA per tn INR 13,479 vs INR 13,487

--Tata Steel: Macro econ scenario in China continued to weigh on steel prices

--Tata Steel consol reported EBITDA INR 62.24 bln vs INR 43.15 bln year ago

--Tata Steel consol adjusted EBITDA INR 55.22 bln vs INR 41.47 bln year ago

--Tata Steel Apr-Sept consol EBITDA INR 130.46 bln, up 25% on year

--Tata Steel Jul-Sept consol EBITDA margin around 12%

--Tata Steel Jul-Sept capex INR 48.06 bln

--Tata Steel Jul-Sept India adjusted EBITDA INR 68.89 bln vs INR 64.95 bln

--Tata Steel Jul-Sept India adjusted EBITDA per tn INR 13,479 vs INR 13,487

--Tata Steel: Macro econ scenario in China continued to weigh on steel prices

 

By Rajesh Gajra

 

MUMBAI – Tata Steel Ltd. beat Street's estimates on both net profit and revenue fronts in the quarter ended September. However, revenue and operational performance clearly reflected unfavourable factors such as weakness in demand. Other income and exceptional loss items in the year-ago period aided the bottom line growth of the company.

 

The company reported a consolidated net profit attributable to shareholders of INR 8.33 billion, much above analysts' estimate of INR 1.39 billion, and also higher than the consolidated net loss of INR 61.96 billion in the year-ago period. In the September quarter last year, Tata Steel had reported an exceptional loss of INR 3.25 billion due to provision for impairment of non-current assets and another exceptional loss of INR 3.61 billion on account of restructuring and other provisions.

 

The consolidated revenue of Tata Steel declined 3.2% on year to INR 539.05 billion. It was notably above the Street's estimate of INR 511.45 billion. The top line growth was hit by a decline in revenue from Tata Steel India. Tata Steel India's revenue declined 5.3% on year to INR 323.99 billion in the September quarter. Revenue from its Indian subsidiary, Neelachal Ispat Nigam Ltd, increased to INR 13.47 billion from INR 12.84 billion in the year-ago quarter. Other Indian operations recorded a revenue decline to INR 23.77 billion from INR 26.46 billion.

 

Tata Steel Europe's revenue increased 1% on year to INR 190.38 billion. Revenue from South East Asian operations declined slightly to INR 17.66 billion from INR 17.98 billion.

 

Among geographical segments, Tata Steel India recorded a 4.3?cline in operating profit, as denoted by earnings before interest, tax, depreciation, and amortisation, to INR 67.34 billion. Tata Steel Europe reported an operating loss of INR 13.44 billion in Jul-Sept, lower than a loss of INR 25.12 billion in the year-ago period.

 

Tata Steel's consolidated volume, in terms of deliveries, increased 6.4% on year to 7.52 million tonnes in the September quarter. However, lower steel prices and sales realisations resulted in a 3.2?cline in the consolidated revenue from operations of the company. "Macro-economic conditions in China continued to weigh on commodity prices including steel... In India, steel demand continued to improve, but domestic prices were under pressure due to cheap imports," Chief Executive Officer and Managing Director T.V. Narendran said in a press release.

 

Profitability improved, according to the company, with the consolidated EBITDA rising 44% on year to INR 62.24 billion, and consolidated EBITDA margin moved up by 300 bps to 12%. The company said on an adjusted basis, the consolidated EBITDA rose to INR 55.22 billion from INR 41.47 billion a year ago.

 

Tata Steel said the consolidated adjusted EBITDA per tonne was INR 7,345 in Jul-Sept, 25% higher than in the year-ago period. The adjusted EBITDA per tonne for the company's India operations was, however, nearly flat at INR 13,479.

 

The capital expenditure incurred by Tata Steel in the September quarter was INR 48.06 billion, as against INR 37.77 billion in the June quarter. The consolidated gross debt of the company expanded nearly 7% to INR 993.92 billion, as on Sep 30 from INR 929.61 billion at the end of June. The consolidated net debt as on Sep 30 was INR 888.17 billion, up 8.1% from the level on Jun. 30. It was the second consecutive quarter of a rise in consolidated net debt. In the June quarter, the consolidated net debt had expanded to INR 821.62 billion as of Jun. 30 from INR 775.50 billion at the end of Mar. 31.

 

Wednesday, shares of Tata Steel closed 0.9% higher at INR 153.62 on the National Stock Exchange of India.  End

 

Edited by Deepshikha Bhardwaj

 

 

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