Tata Steel Ltd - Q1FY14 Result First Cut - Microsec

Tata Steel Ltd announced its Consolidated Q1FY14 results on 13th August, 2013.

The company surpassed the consensus estimates by a wide margin and arrived with surprising Q1FY14 earnings. The net sales was down by 2.97% and 4.77% on QoQ and YoY basis. The EBITDA for the quarter was INR3688.04 crore, which was up by 8.37% on YoY basis, but down by 15.59% on QoQ basis. On YoY basis, it was up due to its cost control efficiencies. The net profit adjusting the exceptional items and deferred gain/expense arrived at INR706 crore, which was down by 36% on YoY basis and 34.1% on QoQ basis but higher than the consensus estimate of INR377 crore. In this quarter, there was a deferred tax gain of INR415.24 crore as compared to deferred expense of INR504.53 crore in Q1FY13 and INR187.71 crore in Q4FY13.

Key Highlights:

- The Indian operations recorded robust performance despite softer markets, weakening economic conditions and a seasonally weak quarter.

- The European operations maintained the improvement in underlying performance on the back of upgrades at key production facilities at Port Talbot and IJmuiden in Q4 which helped strengthen the operating platform.

- The South East Asian operations were affected by a two-month shutdown 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

Source : Equity Bulls

Keywords