Tata Steel Reports Highest Ever Consolidated EBITDA in Q3

Tata Steel CEO & Managing Director Mr TV Narendran said “The recovery in the global and Indian economy has led to sharp improvement in steel demand in
Tata Steel Reports Highest Ever Consolidated EBITDA in Q3
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Tata Steel CEO & Managing Director Mr TV Narendran said “The recovery in the global and Indian economy has led to sharp improvement in steel demand in India. We pivoted our deliveries to domestic markets, to cater to the requirements of our local customers by reducing exports. All the segments, especially automotive, have performed extremely well supported by our continuous focus on strong customer relationships, superior distribution network, brands and new product developments. We are also making good progress on our various initiatives to de-risk the business while our digital marketing platforms are helping us reach new markets and be future ready. The investments in infrastructure and recent policy developments, to drive economic growth, should drive steel demand in India. Given strong market conditions and our success with deleveraging, we have restarted work on the pellet plant and the CRM complex at Kalinganagar which will help in reducing costs and improving revenues. In Europe, our underlying performance has improved quarter on quarter while the reported EBIDTA was negatively impacted by few one offs. We remain committed to arrive at a strategic and sustainable solution for Tata Steel Europe, though in the immediate term, we will focus upon business performance and cash flows.”

Q3 Consolidated

Production 7.20 million tonnes up 7.0% QoQ & 3.0% YoY

Deliveries 6.88 million tonnes down 7.0% QoQ & 5.9% YoY

Turnover INR 39,594 crores up 6.6% QoQ & 11.5% YoY

EBITDA INR 9,540 crores up 53.5% QoQ & 160.7% YoY

EBITDA per tonne INR 13,876 up 65.3% QoQ & 177.4% YoY

Consolidated figures don’t include NatSteel Holding and Tata Steel Thailand which are classified as ‘Assets Held for Sale

Q3 India

Production 4.60 million tonnes up 0.2% QoQ & 2.9% YoY

Deliveries 4.65 million tonnes down 7.9% QoQ & 4.1% YoY

Domestic deliveries grew 8%QoQ and 4%YoY to 4.16 million tonnes & exports shrank below 11% of overall deliveries

Turnover INR 25,211 crores up 9.3% QoQ & 18.4% YoY

EBITDA INR 8,811 crores up 46.2% QoQ & 114.3% YoY

EBITDA per tonne INR 18,931 up 58.8% QoQ & 123.1% YoY

India includes Tata Steel Standalone, Tata Steel BSL Limited and Tata Steel Long Products Limited on proforma basis without inter-company eliminations

Key Indian subsidiaries also delivered robust financial performance with Tata Steel BSL and Tata Steel Long Products generating an EBITDA of INR 1,634 crores and INR 440 crores during the quarter. This translates into an EBITDA per tonne of INR 14,223 and INR 26,471, respectively.

TSBSL merger with Tata Steel is progressing ahead. The merger of Tata Metaliks and Indian Steel and Wire Products with Tata Steel Long Products in also underway

The Company has decided to restart work on Pellet plant and Cold Roll Mill complex at Tata Steel Kalinganagar. Both the Pellet plant and Cold Roll Mill complex, once completed, will expand margin.

Following the termination of the discussions with SSAB on Tata Steel Netherland, the company will be focusing on performance and cash flows in the immediate term. Tata Steel is committed to arrive at a strategic and sustainable resolution for its European portfolio. Tata Steel’s IJmuiden plant is among the most environmentally efficient and cost competitive steel producers in Europe. The process to separate Tata Steel Netherlands and Tata Steel UK is currently underway.

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