Tata Steel consolidated net profit of Rs.921 crore in Q1FY18, vs net loss of Rs. 3,183 crore in Q1FY17 : Estimates Mixed

India Infoline Research Team | August 07, 2017 18:15 IST

Tata Steel Ltd Q1FY18

Consolidated Results Q1FY18: (Rs. in crore)

Q1FY18 YoY (%)
Revenue 30,973 19.6
EBITDA 4,974 55.3
EBITDA Margin (%) 16.1 370
Net Profit (adjusted) 921 -
***EBITDA margin change is bps
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Reco. Price

576

Last updated on

04-Aug-2017


Tata Steel's Q1FY18 consolidated results for the quarter came in mixed versus street estimates. Revenue for the quarter came in 7.2% higher than the estimated figure of Rs. 28902 crore. EBITDA for the quarter came in 18.4% higher than the estimated figure of Rs. 4200 crore. However, net profit for the quarter came in 16.3% lower than the estimated figure of Rs. 1100 crore.

Tata Steel consolidated revenue for the quarter came in at Rs. 30973 crore, registering 19.6% yoy increase. This was primarily driven by ~40% yoy growth in Tata steel’s India business.

EBITDA for the quarter rose by 55.3% yoy to Rs. 4974 crore with a corresponding margin expansion of 370 bps. EBITDA margin for the quarter stood at 16.1%.

While commenting on performance, company’s management stated that, higher volume in India and improved operating performance in Europe and favourable conditions in the overseas business led to EBITDA margin expansion.

The company reported Rs. 921 crore PAT for the quarter as against Rs. 3183 crore net loss in the corresponding quarter of last year.

Company’s gross debt as on June 30, 2017 increased by almost Rs. 4798 crore QoQ to Rs. 87812 crore, due to forex impact along with piling of inventory in India caused due to introduction of GST and seasonal trends in Europe.

During the quarter, it sold its stake in Tata motors for a consideration of Rs. 3778 crores. Also, it completed sale of 42 and 84-inch pipe mills in Hartlepool to Liberty House Group.

Technical View:

Tata Steel Ltd ended at Rs. 600, up by 24.5 points or 4.26% from its previous closing of Rs. 575.50 on the BSE.
The scrip opened at Rs. 584 and touched a high and low of Rs. 601.50 and Rs. 583.50 respectively. A total of 1,21,90,819(NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.

BSE 704.40 [4.95] ([0.70]%)
NSE 705.50 [4.10] ([0.58]%)

***Note: This is a NSE Chart

 

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