Tata Steel Ltd Q1FY22 consolidated PAT at Rs. 9768.34 crores

TATA STEEL LIMITED has reported financial results for the period ended June 30, 2021.

Financial Results (Q1 FY 2021-22) - QoQ Comparison

The company has reported total income of Rs.53534.04 crores during the period ended June 30, 2021 as compared to Rs.50249.58 crores during the period ended March 31, 2021.

The company has posted net profit / (loss) of Rs.9768.34 crores for the period ended June 30, 2021 as against net profit / (loss) of Rs.7161.91 crores for the period ended March 31, 2021.

The company has reported EPS of Rs.74.13 for the period ended June 30, 2021 as compared to Rs.57.19 for the period ended March 31, 2021.

Financials	Q1 FY2021-22	Q4 FY20-21	% Change
Total Income	₹ 53534.04 crs	₹ 50249.58 crs	6.54%
Net Profit	₹ 9768.34 crs	₹ 7161.91 crs	36.39%
EPS	₹ 74.13	₹ 57.19	29.62%

Financial Results (Q1 FY 2021-22) - YoY Comparison

The company has reported total income of Rs.53534.04 crores during the period ended June 30, 2021 as compared to Rs.25662.43 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.9768.34 crores for the period ended June 30, 2021 as against net profit / (loss) of Rs.(4648.13) crores for the period ended June 30, 2020.

The company has reported EPS of Rs.74.13 for the period ended June 30, 2021 as compared to Rs.(39.01) for the period ended June 30, 2020.

Financials	Q1 FY2021-22	Q1 FY2020-21	% Change
Total Income	₹ 53534.04 crs	₹ 25662.43 crs	108.61%
Net Profit	₹ 9768.34 crs	₹ (4648.13) crs	310.16%
EPS	₹ 74.13	₹ (39.01)	290.03%

Mr. T V Narendran, Chief Executive Officer & Managing Director: "Over the last 15 months, the global economy has been recovering driven by policy support and progressive vaccination which has led to improvement in business and customer confidence. However, Indian markets were adversely impacted again during the last quarter due to the 2nd wave of COVID-19 which impacted our steel production as well as deliveries. Demand has begun recovering in India, though domestic steel prices continue to be at a steep discount to China import parity prices. We continue to focus on our objective to attain and retain market leadership in chosen segments by building strong customer relationships, superior distribution network, rolling out brands and developing new products & solutions in steel and new materials.

We are also focused on value accretive growth. Our 5 MTPA TSK phase II expansion is progressing well. It will drive product mix enrichment and cost reduction, further strengthening our competitive position. We have accelerated capex allocation for the 6 MTPA Pellet plant and the CRM complex, both are expected to be commissioned by 1st half of 2022."

Mr. Koushik Chatterjee, Executive Director and Chief Financial Officer: "Our consolidated financial performance for the quarter was exceptionally strong on the back of strong underlying business performance and buoyant market conditions. The company has achieved highest ever quarterly consolidated EBITDA of Rs.16,185 crores, and a Profit after tax of Rs 9,768 crores which is higher than the full year PAT of Financial Year 2021. While the India business has recorded an EBITDA of Rs.13,946 crores, our European business also had an improved quarter, and the impact of rising spreads are expected to positively benefit in the coming quarters.

Despite the increase in working capital due to higher prices of both steel and raw material, the company generated consolidated free cash flow of over Rs.3,500 crores during this quarter and made debt repayments of Rs.5,894 crores. We are committed to deleverage further and expect to bring down the debt significantly by the end of the current financial year. We continue to prioritize capex spend on ongoing projects and strategically essential investments.

The financial metrics of the company have strengthened further; Net Debt to Equity is less than 1x while Net Debt to EBITDA is now down to 1.59x. We are happy to note that Standard & Poor's has recently upgraded the credit rating by one notch to BB Stable. The group liquidity position remains strong at Rs.20,695 crores, including Rs.10,264 crores of cash and cash equivalents."

Shares of TATA STEEL LIMITED was last trading in BSE at Rs. 1435 as compared to the previous close of Rs. 1426.45. The total number of shares traded during the day was 540595 in over 16793 trades.

The stock hit an intraday high of Rs. 1444.8 and intraday low of 1416.65. The net turnover during the day was Rs. 773443954.

Source : Equity Bulls

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