Tata Steel's Group profit for Q1 FY13/14 showed a 90.5% increase over the same period last year (Q1 FY12/13) when the profit was INR5980M ($98.0M).
Tata Steel Group reported Group profits for Q1 (Apr-June 2013) FY13/14 of INR11.390bn (US$186.7M) compared to a loss of INR65.290bn ($1070.3M) in Q4 FY12/13. Q1 FY13/14 showed a 90.5% increase over the same period last year (Q1 FY12/13) when the profit was INR5980M ($98.0M). This improvement was on the back of robust performance by the Indian operations and improved performance at the European operations.
A summary of the results expressed in US dollars converted from Indian Rupees at INR 61 = US$ 1 are presented in the table.
Cash and cash equivalents as on 30th June, 2013 were INR101.780bn ($1668.5M) and net debt was INR612.890bn ($10.04bn). Total liquidity including undrawn credit lines was INR171.440bn ($2.81bn).
Indian operations
The Indian operations recorded robust performance despite softer markets, weakening economic conditions and a seasonally weak quarter.
Best ever production was achieved for hot metal and from the Thin Slab Casting and Rolling Plant at Jamshedpur while several facilities such as LD#3, the Cold Rolling Mill, the New Bar Mill and the Merchant Mill achieved best ever quarterly production.
Flat product sales volume increased by 44% y-o-y with value-added products sales increasing by 15%. The long products segment continued to expand its retail reach and provide higher value-added products to its customers.
Europe
The European operations consisting of the former Anglo/Dutch company, Corus, maintained the improvement in underlying performance on the back of upgrades at key production facilities at Port Talbot in UK and Ijmuiden in The Netherlands in Q4 2012 which helped strengthen the operating platform.
Deliveries totalled 3.14Mt in Q1 FY13/14, slightly lower than the 3.21Mt in Q1 FY12/13 largely due to soft market demand. Deliveries were 3.42Mt in Q4 FY12/13.
South East Asia
The South East Asian operations were affected by a two-month shut down for a plant upgrade in Singapore. The profitability was also affected by the sharply narrowing spread in the region witnessed during the last quarter. The Singapore operations have resumed since August.
| Item | Q1FY14 | Q4FY13 |
% Change Q1/Q4 |
Q1 FY 13 |
% Change Q1 14/13 |
|---|---|---|---|---|---|
| Group Profit ($M) | 186.7 | -1070.3 | 85 | 98.0 | 90.5 |
| Deliveries (Mt) | 6.08 | 6.56 | -7.3 | 5.68 | 7.0 |
| Consld Turnover ($M) | 5377 | 5680 | -5.3 | 5540 | -2.9 |
| EBITDA ($M) | 615.5 | 716.0 | -14.0 | 587.0 |
4.8 |
| Indian Operations | |||||
| Deliveries (Mt) | 2.0 | 1.59 | 25.8 | 2.28 | -12.2 |
| Turnover ($M) | 1550.0 | 1460.3 | 6.1 | 1765.4 | -12.2 |
| EBITDA ($M) | 474.9 | 457.5 | 3.8 | 608.8 | -21.9 |
| Profit after Tax ($M) | 222.3 | 222.4 | -0.04 | 214.6 | 3.5 |
| Europe | |||||
| Deliveries (Mt) | 3.14 | 3.21 | -2.2 | 3.42 | -8.2 |
| Turnover ($M) | 3021 | 3142 | -3.8 | 3345 | -9.6 |
| EBITDA ($M) | 127.37 | 100.49 | 26.7 | 101.64 | 25.7 |
| SE Asia | |||||
| Deliveries (Mt) | 0.860 | 0.720 | 19.4 | 0.800 | 7.5 |
| Turnover ($M) | 640.6 | 571.4 | 12.1 | 552.78 | 15.8 |
| EBITDA ($M) | 15.24 | 36.72 | -58.5 | 15.57 | -2.1 |
