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Last Updated : Apr 25, 2019 10:21 PM IST | Source: Moneycontrol.com

Tata Steel Q4 consolidated profit at Rs 2,295 crore, EBITDA margin at 17.7%

Consolidated revenue for the quarter grew 25.9 percent year-on-year (YoY) to Rs 42,423 crore in Q4FY19 from Rs 33,705 crore last year.

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Tata Steel posted a consolidated net profit of Rs 2,295.2 crore for the quarter ended March 2019, down from Rs 14,688 crore posted in the same quarter last year.

Consolidated revenue for the quarter grew 25.9 percent year-on-year (YoY) to Rs 42,423 crore in Q4FY19 from Rs 33,705 crore last year.

"Higher revenue growth reflects the increase in consolidated steel production and deliveries which rose 27 percent and 29 percent, respectively, year-on-year. Also, domestic production and deliveries, which include the numbers of Tata Steel standalone and Tata Steel BSL (Bhushan Steel) jumped 46 percent and 55 percent, respectively," Group Chief Financial Officer Koushik Chatterjee told reporters in a post result conference.

The consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) for Q4FY19 grew 17.4 percent YoY to Rs 7,513.3 crore. However,  EBITDA margin declined to 17.7 percent from 19 percent in Q4 last year.

Gross debt decreased by Rs 8,781 crore during Q4FY19. The company aims to reduce this further by $1 billion by the end of FY20.

Standalone domestic EBITDA per tonne was at Rs 13,619, down from Rs 14,835 last year.


Meanwhile, the company also announced the merger of Bamnipal Steel and Tata Steel BSL with Tata Steel, managing director and chief executive TV Narendran said, adding the shareholder of the merging companies will get one share of Tata Steel for every 15 shares they own.

With the merger, the shares held by Bamnipal Steel and the preference shares held by Tata Steel in Tata Steel BSL shall stand cancelled and so will be the shares held by the parent in Bamnipal Steel.

Production outlook 

The company expects its production to increase by about 1.5 million tons next year, on a consolidated basis. This will include a million tons in the India operations.

After the acquisition of Bhushan Steel, which has been renamed Tata Steel BSL, the company has three production facilities - in Jamshedpur, Kalinganagar and Angul.

The Angul facility comes under Tata Steel BSL. “It has a capacity of 5 million tons a year but was doing about 3.5 million tons when we acquired. We have increased the capacity utilisation to 4.2 million tons and this should increase further,” said CEO & Managing Director TV Narendran.

In its European operations, the production was impacted by a blast furnace shutdown. This, added Narendran, will normalise this financial year and help increase production by up to 0.7 million tons.

Giving an outlook for the year, Narendran said that the demand should recover after the General Elections get over.

“We expect prices to increase by up to Rs 1,500 a ton in this quarter,” he said.

While the auto sector saw a slowdown in demand, due to high inventories, demand remained strong construction industry. “But the residential segment within the construction sector, is weak,” said Narendran.

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First Published on Apr 25, 2019 07:47 pm
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