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Tata Steel announced consolidated financial results for Q3

Steel News - Published on Mon, 11 Feb 2019

Image Source: Justdial
Mr TV Narendran CEO & Managing Director said that “Tata Steel is committed to growing its India footprint while focusing on benchmark operational performance, superior market presence, strong customer relationships and sustainability. Despite a sharp drop in international steel prices, we were able to maintain our overall realizations and increase our volumes significantly in India. The integration of Tata Steel BSL continues and our 5 MTPA expansion at Tata Steel Kalinganagar is also making good progress. We are also looking forward to enhancing our long products and downstream capability through the acquisition of the 1 mtpa steel business of Usha Martin. The phase II review of the TSE ThyssenKrupp JV is ongoing and we are closely working with the European Commission to facilitate the same. In line with our strategy of divesting non-core assets and focusing on India, we have announced a divestment of a 70% stake in our SEA business and we continue to work on exploring similar opportunities across our portfolio."

Highlights of the quarter:

1. Health and Safety: Lost Time injury frequency rate per mn man hours worked of Tata Steel group reduced to 0.47 in 9MFY19

2. Consolidated steel production grew 11%YoY to 7.23 million tonnes and deliveries increased 7%YoY to 6.99 million tonnes

3. India1 steel production surged 34%YoY to 4.38 million tonnes while deliveries grew 18%YoY to 3.89 million tonnes from 3.30 million tonnes in 3QFY18
4. Consolidated revenues increased 23%YoY to INR 41,220 crores; India1 revenues recorded 41%YoY growth to INR 22,063 crores as compared to INR 15,596 crores in 3QFY18

5. Consolidated adjusted EBITDA grew 27%YoY to INR 7,225 crores as compared to INR 5,671 crores in 3QFY18

6. Standalone adjusted EBITDA was INR .4,872 crores and EBITDA margin stood at 28.4%. Standalone EBlTDA/t was INR 16,407/t

7. Consolidated PAT increased to INR 1,753 crores as compared to INR 1,136 crores in 3QFY18

8. The liquidity position of the group remains robust at INR 19,320 crores comprising of INR 8,549 crores in cash and cash equivalents and INR 10,771 crores in undrawn bank lines

9. Gross debt decreased by INR 9,083 crores during the quarter.

Key Operating and Financial Highlights of the quarter:

1. India1 steel production grew by 34%YoY to 4.38 million tonnes with the acquisition and ramp-up of Tata Steel BSL. India1 deliveries stood at 3.89 million tonnes and now account for more than 55% of consolidated volumes.

2. Tata Steel continued to increase its market share in chosen segments. Automotive segment sales increased by 24%YoY; Industrial Products and Projects segment sales grew by 29%YoY.
Branded products, Retail & Solutions segment sales grew by 16%YoY; Tata Steel now touches 3 million retail customers.

3. India1 revenues from operations increased by 41%YoY to INR 22,063 crores driven by higher volumes and better realizations.

4. Standalone adjusted EBITDA for the quarter was INR 4,872 crores, the EBITDA margin stood at 28.4%; Standalone EBlTDA/t was INR 16,407/t.

5. Tata Steel BSL integration is progressing smoothly and the focus continues to be on ramping up production and realizing synergies. Tata Steel BSL EBITDA for the quarter was INR 1,008 crores and the EBITDA margin was 20.6%.

6. Tata Steel remains focused on operational efficiencies and minimizing environmental impact.

Tata Steel Jamshedpur has been able to increase solid waste utilization to 97% in 3QFY19. Solid waste utilization at Tata Steel Kalinganagar stood at 105% in 3QFY19.

Source :

Posted By : Ratan Singh on Mon, 11 Feb 2019
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