MUMBAI (Commodity Online): TATA Steel Limited (BSE: 500470; NSE: TATASTEEL.NS) -- world's seventh largest steel company-- has on Friday reported net profit of Rs 5,347 crore in the quarter ended June 30,2011, almost three times the profit of Rs 1,825 crore recorded in Q1 FY 11.
The company also recorded EBITDA of Rs 8,358 crore in same quarter which included one off gains of Rs 4,007 crore. The underlying EBITDA was Rs 4,351 crore compared to the EBITDA recorded in Q1 FY11 of Rs 4,506 crore.
Highlights:
--Group Revenue in the first quarter of Rs 33,000 crore was an increase of 21.4% over Rs 27,194 crore recorded in Q1 FY11, due to higher average realizations and volumes. Group deliveries of 6.1 million tonnes in Q1 FY12 were 3.1% higher than the deliveries of 5.9 million tonnes recorded in Q1 FY11.
--The Indian operations continued to perform strongly, with EBITDA of Rs 3,656 crore and profit after tax of Rs 2,219 crore. The underlying EBITDA margin, excluding one off gains of Rs 511 crore was 40% in Q1 FY12, 3.3 percentage points higher than the EBITDA margin of 36.7% in Q4 FY11.
--The European operations performed steadily on the strength of higher average realisations. EBITDA of Rs 1,907 crore was 41.2% higher than the EBITDA recorded in Q1 FY11 of Rs 1,351 crore.
--Net debt at the end of June 2011 of Rs 40,824 crore was lower than the Rs 46,627 crore recorded at the end of March’11.
--The Company divested its stake in Riversdale Mining Limited for a consideration of Rs 4,942 crore. Following this stake sale, the Company continues to hold a 35% stake in Riversdale Energy (Mauritius) Limited, a project company currently developing the Benga coal tenement in Mozambique.
Tata Steel Managing Director Mr HM Nerurkar said “Volumes and earnings from the Indian operations were robust despite signs of slower growth in India. Deliveries in Q1 rose 14% over the previous year on the back of successful marketing and collaboration with key customers on product development.”
He continued, “We are continuing to consolidate the gains captured in recent quarters through our company-wide Continuous Improvement programs, though high raw material prices and monetary tightening in India remain cause for concern.”
“Our next expansion phase at Jamshedpur will start coming on stream in the last quarter of this financial year and the Odisha greenfield project is progressing well, with the first 3 million tonne per annum phase due for commissioning in 2014. In South East Asia we continue our efforts to improve performance through new product launches, cost reduction measures and operating initiatives,” he concluded.
