On May 5, Tata Steel posted consolidated profit of Rs 6,644.1 crore for the quarter ended March 2021, which was in line with analysts’ expectations and operating performance. The company reported a loss of Rs 1,481.3 crore in the year-ago quarter.
However, analysts’ expectations were missed due to higher tax rates and lower other incomes.
Consolidated revenue from operations stood at Rs 49,977.4 crore in the same quarter of the previous fiscal, up 38.8 percent from Rs 36.8009.4 crore.
“Fourth quarter performance has been in terms of both earnings and cash flow, and helped the company report one of the highest underlying performance of the full year despite epidemic-related disruptions during the first half of the fiscal year.” Kaushik Chatterjee, Executive Director and CFO said.
According to an average estimate of analysts put out by CNBC-TV18, profit on revenue of Rs 47,476 crore in Q4FY21 was Rs 7,050 crore.
At the operational level, consolidated EBITDA (earnings before interest, tax, depreciation and amortization) during the quarter under review of 195.6 per cent year-on-year (YoY) was Rs. High steel prices.
Operating performance was ahead of CNBC-TV18 poll estimates for the quarter at Rs 13,405 crore with a margin of 28.2 percent.
Consolidated crude steel production grew by 1.5 percent YoY to 8.02 million tonnes and steel deliveries grew 10.9 percent to 7.83 million tonnes in YoY for the March 2021 quarter.
On the Indian front, crude steel production rose 0.4 percent to 0.4 percent, up by 15.9 percent to 4.67 million tons compared to the same quarter last year. India’s operations included Tata Steel standalone, Tata Steel BSL and Tata Steel Long Products.
Tata Steel said India’s operations achieved the highest quarterly EBITDA of Rs 12,295 crore, 40 per cent QoQ and 2.7x YoY in the period, translating into Rs 26,309 per EBBDA per tonne and EBITDA margin of 40.9 per cent.
The company further noted that Tata Steel’s standalone also recorded the highest-quarterly EBITDA at Rs 9,206 crore, which was 37 percent QoQ and 2.5x YOY, translating into EBITDA of Rs 27,828 per tonne and EBITDA margin of 43.4 percent. happen.
Steel delivery in Tata Steel Europe increased by 17 percent QoQ and 3 percent yo to 2.47 million tonnes Q4 FY21 and EBITDA rapidly improved to Q4 FY21 at £ 125 million, the company said.
Tata Steel has recorded a massive 381.2 percent increase in consolidated profit to Rs.2,909.22 crore in FY2121 as compared to Rs.1555.56 crore in the previous year. Revenue from operations increased by 4.9 percent to Rs 1,56,294.18 crore as compared to the previous year.
Net debt declined by Rs 29,390 crore to Rs 75,389 crore, a 28 percent decrease from the previous year.
Kaushik Chatterjee said, “Aggressive prepayment of debt has led to a sharp improvement of capital structure metrics, with net debt at 1x and net debt / EBITDA at a long-term target level of around 2.44x.”
In the current financial year, “we will reduce the debt level by more than one billion dollars for our strategic capital program in India to complete the 5 million tonne per annum expansion in Kalinganagar and also increase capital allocation,” he said.