TATA Steel has recently announced its third quarter (Q3) results for FY17-18. While SteelMint had already covered the production performance of the company in Q3 on 6 Jan’18, here we will be focusing on 10 major highlights of the company other than the production in Q3 FY18.
1. Tata Steel’s sales revenues for Q3 FY18 was recorded at INR 15,596 crores, up by 9.6% against previous quarter of Q2 FY18 and 10.5% higher Y-o-Y basis against INR 14,106 crore in Q3 FY17.
2. Company’s EBDITA (Earnings before Depreciation Interest Tax and Amortisation) for Q3 FY18 was recorded at INR 4,647 crore, up by 36% against previous quarter and by 37% against third quarter of FY17.
3. According to SteelMint analysis, company’s EBDITA margins as a percentage to sales have improved from 24% in Q2FY18 to 30% in Q3FY18 thus indicating improvement in sales volumes coupled with better sales realisations in third quarter of FY18.
4. The company reported profit after tax (PAT) of INR 1,338 crore in Q3 FY18, a surge of 3.4% against Q2 FY18 and of 11% against corresponding quarter of previous fiscal.
5. Tata Steel’s net profit margin for Q3 FY18 was recorded at 8.6% while the same was 9.1% in Q2 FY18 and 8.5% in previous fiscal’s Q3 FY17. The company’s net profit margins declined on q-o-q basis as the company had to bear exceptional charges of INR 1,115 crore in Q3 FY18 with respect to certain demands and claims from regulatory authorities relating to mining operations. This exceptional charge directly lowered down the net profits (PAT) OF Tata Steel in Q3 FY18.
6. Company’s sales volumes in European market for Q3 FY18 was recorded at 2.44 MnT, up by 4% y-o-y basis but down by 6% against previous quarter of Q2 FY18. This is due to seasonality and planned outages across the business for upgrades designed to strengthen the sales of higher value differentiated products. Tata Steel’s revenues from Southeast Asian operations was recorded at INR 2,492 crore in Q3 FY18, a surge of 26% y-o-y basis and of 3% q-o-q basis.
7. On 29 Dec’17, Tata Steel’s Kalinganagar plant had to face unscheduled shut down due to technical snag in its blast furnace resulting in company’s loss of production of 0.15 MnT. However, the repair work of the furnace is underway and the company expects to restart the furnace in next 7 to 10 days. As reported the company is currently meeting its customer commitments from existing inventory at Jamshedpur plant.
8. The company’s board approved a rights issue of equity shares for an amount not exceeding INR 12,800 crores. The proceeds will be used for the purpose of deleveraging and general corporate purposes. The issue will open on 14 Feb’18 and will close on 28 Feb’18.
9. The company has concluded the acquisition of 74% of equity shares of Bhubaneswar Power Private limited (BPPL) for amount of INR 255 crores, making it a 100% subsidiary. The acquisition would provide an opportunity to the company to increase captive source of power to meet company’s growing demand.
10. Tata Steel also acquired full intellectual property rights in Hlsarna technology which has the potential to reduce energy use and carbon emissions by at least 20%, as well to reduce the steel making costs through lower-priced raw materials.
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