TATA Steel reports Consolidated Financial Results for the quarter ending June 30th 2012
Group Performance Highlights:
1. TATA Steel Group’s profit after tax (after minority interest and share of profit of associates) for Q1 FY’13 was INR598 crores (USD 107 million) compared to a profit of INR 433 crores (USD 78 million) in Q4 FY'12 and a profit of INR 5,347 crores (USD 961 million) in Q1 FY’12 (including one-off profits of INR 3,362 crores (USD 604 million) on sale of investments).
2. Group EBITDA in Q1 FY’13 was INR 3,581 crores (USD 644 million) compared to INR 3,419 crores (USD 615 million) in Q4 FY’12 and INR 5,071 crores (USD 912 million) in Q1 FY’12.
3. Group consolidated turnover of INR 33,821 crores (USD 6.08 billion) in Q1 FY’13 declined by 0.5% from the INR 33,999 crores (USD 6.11billion) in Q4 FY’12 but was up by 2.5% from the INR 33,000 crores (USD 5.93 billion) in Q1 FY’12.
4. The Group’s steel deliveries declined by 8.7% to 5.68 million tonnes in Q1 FY’13 compared to the 6.22 million tonnes in Q4 FY’12 and by 6.2% from the 6.05 million tonnes in Q1 FY’12.
5. Net debt at the end of June 2012 increased to INR 54,020 crores (USD 9.71 billion) compared to INR 47,657 crores (USD 8.57 billion) at the end of March 2012.
6. Turnover at TATA Steel India in Q1 FY’13 was INR 8,908 crores (USD 1.6 billion), down by 6% from the INR 9,479 crores (USD 1.7 billion) in Q4 FY'12 but up by 13.3% from the INR 7,860 crores (USD 1.41 billion) in Q1 FY’12.
EBITDA of INR 2,791 crores (USD 502 million) in Q1 FY’13 was 6.2% lower than the INR 2,975 crores (USD 535 million) in Q4 FY'12 and down by 11.6% from the INR 3,156 crores (USD 567 million) in Q1 FY’12. The EBITDA margin was stable compared to the previous quarter.
Deliveries at 1.59 million tonnes in Q1 FY’13 declined by 10.3% from the 1.77 million tonnes in Q4 FY’12 but remained stable compared to Q1 FY’12.
7. Turnover at TATA Steel Europe in Q1 FY’13 was INR 20,406 crores (USD 3.67 billion) compared to the INR 19,923 crores (USD 3.58 billion) in Q4 FY'12 and INR 20,535 crores (USD 3.69 billion) in Q1 FY’12. Q1 FY’13 sales declined by 4.9% from Q4 FY'12 and by 15% from Q1 FY’12, as per TATA Steel Europe’s reporting currency.
EBITDA of INR 620 crores (USD 111 million) in Q1 FY’13 was up from the INR 146 crores (USD 26 million) in Q4 FY'12 but down from the INR 1,907 crores (USD 343 million) in Q1 FY’12. The EBITDA margin improved on a sequential basis.
Deliveries declined by 9.5% to 3.21 million tonnes in Q1 FY’13 compared to the 3.55 million tonnes in both Q4 FY’12 and Q1 FY’12.
8. Turnover at TATA Steel South East Asia in Q1 FY’13 was INR 3,372 crores (USD 606 million), up by 7% from the INR 3,152 crores (USD 567 million) in Q4 FY'12 and up by 1.2% from the INR 3,332 crores (USD 599 million) in Q1 FY’12.
EBITDA of INR 95 crores (USD 17 million) in Q1 FY’13 was 10.5% lower than the INR 106 crores (USD 19 million) in Q4 FY'12 but up by 6.1% from the INR 89 crores (USD 16 million) in Q1 FY’12. The EBITDA margin declined slightly on a sequential basis.
Deliveries declined by 0.8% to 0.72 million tonnes in Q1 FY’13 compared to the 0.73 million tonnes in Q4 FY’12 and by 7.7% from the 0.78 million tonnes in Q1 FY’12.
Mr HM Nerurkar MD of TATA Steel said that “Indian operations posted robust performance against the backdrop of weakening demand and increased competition. Market challenges have made us focus on tightening of costs, improving product-mix and ensuring that the ramp up of our brownfield expansion takes place by the year-end. Downstream linkages of Indian operations are expected to provide the required depth to our business. South East Asian operations are being strengthened on the back of operational and marketing initiatives, leading to better results.”
Dr Karl-Ulrich Köhler CEO and MD of TATA Steel Europe said that “Our financial performance continued to improve as raw material cost pressure eased further and strategic cost initiatives yielded further benefits. At Port Talbot, the blast furnace rebuild is progressing on schedule and other operational problems that arose early in 2012 were largely resolved. European steel demand is lower than expected and prices have weakened. We continue to seek to mitigate the effects of this with tight cost control and emphasis on increased product differentiation.”
Source - TATA Steel
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