TATA Steel announces Q2 and H1 results
TATA Steel Group declared its Consolidated Financial Results for the first half and second quarter ended September 30, 2013. The positive momentum in earnings continued even in a seasonally weak period as the Group net profits for the second quarter came in at INR 917 crores compared to the net loss of INR 364 crores in the previous year while the net profit for the first half of this year was INR 2,056 crores compared to INR 234 crores in the first half of last year. This turnaround was driven by the steady ramp-up of the Indian operations and improved performance at the European and South East Asian operations.
Group Performance Highlights
1. Group steel deliveries in H1 FY 2013-14 (H1 FY’14) increased to 12.56 million tonnes from 11.74 million tonnes in H1 FY 2012-13 (H1 FY’13). Deliveries in Q2 FY 2013-14 (Q2 FY’14) were 6.48 million tonnes compared to 6.08 million tonnes in Q1 FY 2013-14 (Q1 FY’14) and 6.07 million tonnes in Q2 FY 2012-13 (Q2 FY’13).
2. Group consolidated turnover in H1 FY’14 was INR 69,450 crores versus INR 67,954 crores in H1 FY’13. Q2 FY’14 turnover increased to INR 36,645 crores from `32,805 crores in Q1 FY’14 and INR 34,133 crores in Q2 FY’13.
3. H1 FY’14 Group EBITDA was INR 7,539 crores compared to INR 6,034 crores in H1 FY’13. Q2 FY’14. EBITDA increased to INR 3,784 crores from INR 3,755 crores in Q1 FY’14 and rose significantly from INR 2,453 crores in Q2 FY’13.
4. Group Profit after Tax (after minority interest and share of profit of associates) in H1 FY’14 was INR 2,056 crores versus INR 234 crores in H1 FY’13. Profit after tax in Q2 FY’14 was INR 917 crores compared to INR 1,139 crores in Q1 FY’14 and a loss of INR 364 crores in Q2 FY’13.
Mr T V Narendran, Managing Director of TATA Steel India and South East Asia, said: “Overall market conditions weakened during the last quarter, exacerbated by heavy monsoons and the credit slowdown affecting our customers. Despite these difficult conditions, we were able to increase deliveries by 18% over last year and increase market share on the back of strong customer relationships, our superior product portfolio and the strength of our distribution network. The rolling facilities of the brownfield expansion at Jamshedpur ramped up to full capacity towards the end of the second quarter. Our greenfield project in Odisha continues to make good progress though there have been some weather related disruptions due to the Phailin cyclone and the subsequent floods. The South East Asian operations have stabilised and should deliver strong performance over coming quarters.”
Source – Strategic Research Institute