Tata Steel Q1 Results FY2023: PAT drops 21%YoY; revenue up nearly 19% - highlights!

Tata Steel Q1 Results FY2023: Tata Steel Limited today reported a 21 per cent Year-on-Year (YoY) drop in its Profit After Tax (PAT) for the quarter ended 30 June 2022 at Rs 7714 cr versus Rs 9,768.34 cr reported during Q1 of FY22, the company said in its filing to the exchanges.

Total income for Tata Steel went up to Rs 63,698.15 cr for the reporting quarter as against Rs 53,627.66 cr reported during the corresponding quarter in the year-ago period. This was up nearly 19 per cent YoY.

The results were announced after market hours. The Tata Steel shares ended at Rs 964.70, up 3 per cent from the Friday closing price.

Tata Steel Q1 Results highlights:

1) EBITDA of Rs 15,047 crores. On QoQ basis, EBITDA margin improved to 24% while EBITDA per ton increased by Rs 3,780 to Rs 22,717.

2) Net debt of Rs.54,504 crores. Net Debt to EBITDA at 0.87x and Net Debt to Equity at 0.48x.

3) The 6 MTPA Pellet plant at Kalinganagar will be commissioned in 3QFY23 followed by the Cold Roll Mill complex and the 5 MTPA expansion.

4) Tata Steel Long Products, a subsidiary of Tata Steel, has completed the acquisition of Neelachal Ispat Nigam Limited on 4th July 2022

India Operations

- Deliveries were marginally lower by 2% YoY due to moderation in exports following the imposition of 15% export duty. Consequently, domestic deliveries were successfully ramped up by leveraging our strong marketing network and agile business model.

- Revenue per ton rose by Rs. 8,534 QoQ to Rs 83,625 per ton due to long term contracts and product mix.

- Reported EBITDA stood at Rs 9,582 cr, which translates to an EBITDA per ton of Rs 23,557.

▪ Europe operations:

- Revenue per ton increased by £154 QoQ to £1,248 per ton due to long term contracts and product mix.

- Achieved highest ever quarterly EBITDA at £621 million, which translates to an EBITDA per ton of £290.

“This has been a challenging quarter for the Global and Indian economy with rising interest rates, supply chain constraints and slowdown in China due to COVID. Despite these multiple headwinds, Tata Steel has delivered a strong performance with an improvement in margins," the exchange filing said quoting  V Narendran, Chief Executive Officer & Managing Director.

"Our strong marketing franchise and superior business model in India enabled us to successfully pivot and increase our domestic deliveries to counter the 15% duty imposed on steel exports in the middle of the quarter. We continue to drive value accretive growth in India backed by investments in customer relationships, brands and distribution networks and remain well positioned to benefit from the buoyant automotive & retail housing demand and the government spend on infrastructure," he added. 

"Our European business delivered a sharp improvement in performance as long term contracts and product mix helped drive a strong increase in realizations. We are geared towards commissioning the 6 MTPA pellet plant at Kalinganagar in 3QFY23 which will drive cost savings followed by the CRM complex and the 5 MTPA expansion project. Our subsidiary, Tata Steel Long Products, has completed the strategic acquisition of Neelachal Ispat Nigam Limited and will drive growth of our long products business. We continue to progress on our sustainability journey and are committed to being net zero by 2045. We are also focused on making Tata Steel more diverse & inclusive and were ranked 3 rd among manufacturing companies by Great Place to Work in India,” the CEO said.