TATA Steel Ltd reports consolidated PAT of Rs. 1665.07 crore

TATA STEEL LTD. has reported financial results for the period ended September 30, 2020.

Financial Results (Q2 FY20-21) - QoQ Comparison

The company has reported total income of Rs.37376.13 crores during the period ended September 30, 2020 as compared to Rs.24481.09 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.1665.07 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.(4648.13) crores for the period ended June 30, 2020.

The company has reported EPS of Rs.13.23 for the period ended September 30, 2020 as compared to Rs.(39.01) for the period ended June 30, 2020.

Financials	Q2 FY20-21	Q1 FY20-21	% Change
Total Income	₹ 37376.13 crs	₹ 24481.09 crs	52.67%
Net Profit	₹ 1665.07 crs	₹ (4648.13) crs	135.82%
EPS	₹ 13.23	₹ (39.01)	133.91%

Financial Results (Q2 FY20-21) - YoY Comparison

The company has reported total income of Rs.37376.13 crores during the period ended September 30, 2020 as compared to Rs.34762.73 crores during the period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.1665.07 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.3302.31 crores for the period ended September 30, 2019.

The company has reported EPS of Rs.13.23 for the period ended September 30, 2020 as compared to Rs.29.25 for the period ended September 30, 2019.

Financials	Q2 FY20-21	Q2 FY19-20	% Change
Total Income	₹ 37376.13 crs	₹ 34762.73 crs	7.52%
Net Profit	₹ 1665.07 crs	₹ 3302.31 crs	-49.58%
EPS	₹ 13.23	₹ 29.25	-54.77%

Financial Results (6 months ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.61857.22 crores during the 6 months period ended September 30, 2020 as compared to Rs.70960.94 crores during the 6 months period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.(2983.06) crores for the 6 months period ended September 30, 2020 as against net profit / (loss) of Rs.4016.34 crores for the 6 months period ended September 30, 2019.

The company has reported EPS of Rs.(25.78) for the 6 months period ended September 30, 2020 as compared to Rs.35.13 for the 6 months period ended September 30, 2019.

Financials	Half-Year Ended FY20-21	Half-Year Ended FY19-20	% Change
Total Income	₹ 61857.22 crs	₹ 70960.94 crs	-12.83%
Net Profit	₹ (2983.06) crs	₹ 4016.34 crs	-174.27%
EPS	₹ (25.78)	₹35.13	-173.38%

Mr. T V Narendran, CEO & Managing Director: "Tata Steel has delivered strong results in India with broad based, market leading volume growth and strong cashflow generation. The resilience of our business model and the commitment of our teams has enabled us to ramp-up capacity utilization to normal levels and achieve highest ever sales despite the ongoing challenges due to the COVID pandemic. There has also been a significant improvement in product mix towards domestic sales and higher value-added products and a sharp reduction in costs. We are now embarking on re-organizing our Indian subsidiaries into four verticals to drive scale, synergies and simplification which we are confident will create value for our stakeholders.

In Europe, though the overall environment remains challenging and recovery is more gradual, there has been an improvement in volumes and sales mix. We will continue to drive performance and work on a strategic resolution to ensure the focus remains on cash flows and self-sufficiency. We are continuing our discussions with the UK Government regarding the future strategy of our UK business."

Mr. Koushik Chatterjee, Executive Director and CFO: "It is very heartening to report that despite the pandemic, Tata Steel has delivered one of the best quarterly results in India in the recent times. This was driven by relentless focus on operating performance and a reduction in our cash costs by almost 14% on a quarter on quarter basis. India operations generated an EBITDA of Rs.6,025 crores and Tata Steel Standalone EBITDA margin crossed 29% with an EBITDA/t of Rs.13,127.

We continue to pivot the business decisions on cash while aggressively managing costs and being highly disciplined on capex to ensure we progress on our deleveraging journey. This quarter we reduced our consolidated net debt by Rs.8,197 crores which is now below March 2019 levels. We ended 2Q with a liquidity buffer of Rs.24,323 crores with about Rs.17,824 crores in cash & cash equivalents which along with robust internal generation gives us enough headroom to further deleverage going forward.

Based on the discussions, initiated by SSAB Sweden, regarding a potential acquisition of Tata Steel's Netherlands business, we will undertake a due process and move to the next stages including consultation and due diligence. In India too, we are moving on the consolidation and the corporate simplification process with the announcement today of the merger of Tata Metaliks and Indian Steel and Wire products into Tata Steel Long Products."

Shares of TATA STEEL LTD. was last trading in BSE at Rs.486.5 as compared to the previous close of Rs. 473.15. The total number of shares traded during the day was 1083996 in over 18233 trades.

The stock hit an intraday high of Rs. 488 and intraday low of 465.4. The net turnover during the day was Rs. 517675231.

Source : Equity Bulls

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