August 07, 2017

Tata Steel reports consolidated financial results for the quarter ended June 30, 2017

  • Consolidated deliveries of 5.83 million tonnes, with India contributing to 47% of Group deliveries
  • Consolidated quarterly revenues of Rs 30,973 crore, up by 19% over the last year but down by 12% QoQ.
  • Consolidated EBITDA at Rs. 4,939 crore for Q1FY18 with an EBITDA margin of 16%.
  • Consolidated PAT from continuing operations before exceptional items at Rs 1,550 crore for Q1FY18 compared to Rs 377 crore in Q1FY17 and Rs 3,352 crore in Q4FY17.
  • Exceptional items for the quarter were Rs 617 crore mainly relating to provision for mining related litigation.
  • Gross debt increased by Rs. 4,798 crore due to FX impact, inventory buildup in India as a result of GST implementation and seasonal trends in Europe.
  • Net debt was Rs. 71,703 crore and cash and cash equivalent at Rs 16,109 crore at the end of the quarter. The total liquidity including undrawn bank lines is Rs 23,827 crore.

Tata Steel Standalone and Consolidated Highlights

(Figures in Rs. crore unless otherwise specified)
As per Ind AS Standalone Consolidated*
Q1FY18 Q4FY17 Q1FY17 Q1FY18 Q4FY17 Q1FY17
Steel Deliveries
(Million Tonnes)
2.75 3.21 2.15 5.83 6.83 5.37
Turnover 14,422 17,113 10,323 30,973 35,305 25,971
EBITDA 2,922 4,324 2,236 4,939 6,982 3,303
Pre-Exceptional PBT from Continuing Operations 1,412 2,697 1,095 2,291 4,328 1,118
Exceptional Charges (617) (442) (155) (617) (4,069) (168)
PAT from Discontinued Operations - - - (12) (451) (3,392)
Reported PAT 506 1,415 575 921 (1,168) (3,183)
Other Comprehensive Income (129) 24 638 (3,542) 1,393 354
Total Comprehensive Income 377 1,439 1,214 (2,621) 225 (2,829)
EPS (Continuing & Discontinued Operations) (Rs.) 4.77 14.12 5.48 9.04 (12.48) (33.26)

*Long Products and Specialty Steels businesses have been re-classified as held for sale/ discontinued operations. The previous year’s figures have also been re-stated accordingly.

Key operating and financial highlights

India operations:

  • Deliveries of 2.75 million tonnes in Q1FY18. An increase of 28% over the corresponding quarter of the last year largely due to the ramp up of Kalinganagar facility. Sequential decline of 14% due to seasonal factors, GST and planned shutdowns.
  • EBITDA of Rs 2,922 crore compared to Rs. 2,236 crore in Q1 FY17, an increase of 31% in line with higher deliveries.
  • Branded products and Retail sales grew by 19% YoY and now comprise 48% of total sales.
  • Tata Steel Jamshedpur continues to be the benchmark in India for Coke & Pulverized Coal Injection (PCI) usage and achieved lowest best-ever coke rate of 348 kg/tonne of hot metal and PCI rate of 180 kg/ tonne of hot metal in Q1FY18.

European operations:                                                                                            

  • Liquid steel production in the first quarter of 2.79 million tonnes was 7% higher on a sequential basis and YoY.
  • Deliveries in Q1 were 3% lower YoY and 16% lower than the seasonally strong fourth quarter.
  • Revenues in the first quarter were £1,703mn, up 28% YoY reflecting the improved market conditions and increased sales of differentiated products. While selling prices increased, lower deliveries led to a 6% decrease in revenue compared to the previous quarter.
  • EBITDA was £152mn, 63% higher YoY due to more favourable market and currency conditions as well as ongoing measures to improve the competitiveness of the UK operations. EBITDA was lower by 36% on a sequential basis due to higher raw material costs and lower deliveries.

South-East Asian operations:               

  • Revenue for South East Asia operations was Rs 1,995 crore at par with Q1FY17.
  • EBITDA declined by 88% YoY due to lower scrap – rebar local spreads in the region and weak market conditions particularly at NatSteel.