Tata Steel Long Products - Financial Results for 3QFY22 and Update on operations

Tata Steel Long Products revenue crossed Rs. 5,000 crores in 9MFY22 and Strong operating cash flow drives reduction in Net debt to Rs 108 crores.

Highlights:

• Crude Steel production grew by 12% YoY and total deliveries increased by 6% YoY on the back of continued economic recovery in 9MFY22.
• During 3QFY22, Crude steel production and deliveries were marginally lower by 2% QoQ due to maintenance shutdown.
• Continued focus on mix enrichment and higher steel prices led to an increase of 2% QoQ to Rs. 1,677 crores in Revenue from operations.
• EBITDA stood at Rs 255 crores, lower on QoQ basis. However, 2QFY22 EBITDA included certain one-off gains. Profit after tax stood at Rs 104 crores.
• Gross debt decreased to Rs. 777 crores with prepayments of Rs. 636 crores in 9M FY22. Net debt declined to Rs. 108 crores. Net debt to EBITDA improved to 0.07x; Net debt to equity stood at 0.03x.
• Tata Steel Long Products ("TSLP") long term issuer rating has been upgraded by India Ratings and Research to 'IND AA+' with stable outlook.

Update on Operations:

At the end of December 2021, one of the Blast Furnaces in the Adityapur facilities started facing operational issues and after a detailed technical and expert assessment, the company has decided to shut down the Blast Furnace immediately for the next 2-3 weeks. As a result of the shutdown taken, the Q4 FY 2022 production volume will be lower by around 15-20%.

Shares of Tata Steel Long Products Limited was last trading in BSE at Rs. 759.00 as compared to the previous close of Rs. 778.85. The total number of shares traded during the day was 9500 in over 1522 trades.

The stock hit an intraday high of Rs. 780.00 and intraday low of 755.00. The net turnover during the day was Rs. 7275576.00.

Source : Equity Bulls

Keywords

TataSteelLongProducts INE674A01014 TATASTLLP Q3FY22 9MFY22 FinancialResults OperationsUpdate