Tata Steel Ltd's Q2FY19 consolidated net profit rises 193.8% yoy to Rs3,012.70cr : Beats Estimates

The company’s consolidated revenue stood at Rs43,544cr, up 34.1% yoy and 15.1% qoq.

Nov 13, 2018 02:11 IST India Infoline Research Team

Tata Steel Ltd Q2FY19

Consolidated Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 43,544 34.1
EBITDA 9,000 93.0
EBITDA Margin (%) 20.7 630
Net Profit (adjusted) 3,013 193.8
***EBITDA margin change is bps

Tata Steel's results for Q2FY19 beat expectations due to strong performance by domestic steel businesses. Revenue grew by 34.1% yoy to Rs43,544cr (expectation Rs42,634cr). EBITDA stood at Rs9,000cr, up 93% yoy against estimates of Rs6,395cr. EBIDTA margin rose by 630bps yoy to 20.7%. Adjusted Net Profit stood at Rs3,013cr against an estimate of Rs1,563cr.
  • Steel production for the quarter stood at:
    • Tata Steel India   3.26mn tonnes (up 1.8% yoy)
    • Tata Steel Europe   2.43mn tonnes  (down 6.5% yoy)
    • South East Asia   0.54mn tonnes (down 11.5% yoy)
    • Bhushan Steel   1.05mn tonnes (flat qoq)
  • Steel sales for the quarter stood at:
    • Tata Steel India   3.18mn tonnes (up 8% yoy)
    • Tata Steel Europe   2.25mn tonnes  (down 13.5% yoy)
    • South East Asia   0.65mn tonnes (down 3% yoy)
    • Bhushan Steel   1.14mn tonnes (up 34.2% qoq)
  • Segmental Revenue for the quarter stood at:
    • Tata Steel India   Rs17,902cr (up 24.1% yoy)
    • Tata Steel Europe   Rs15,929cr (up 6.2% yoy)
    • South East Asia   Rs2,963cr (up 22.2% yoy)
    • Bhushan Steel   Rs5,862cr
  • Segmental EBITDA for the quarter stood at:
    • Tata Steel India   Rs6,113cr (up 79.4% yoy)
    • Tata Steel Europe   Rs1,111cr (up 51.8% yoy)
    • South East Asia    Rs112cr  (down 20% yoy)
    • Bhushan Steel   Rs1,173cr
  • Segmental EBITDA per tonne for the quarter stood at:
    • Tata Steel India   Rs19,244 (up 75.2% yoy)
    • Tata Steel Europe   Rs4,886  (up 73.5% yoy)
    • South East Asia    Rs1,736  (down 16.8% yoy)
    • Bhushan Steel   Rs10,291
  • Net Debt at the end of Q2FY19 stood at Rs1.04 lakh cr at the end of September 2018. Cash and current investments stood at Rs14,478cr.

Technical View:

Tata Steel Ltd ended at Rs. 589.15, up by 6.25 points or 1.07% from its previous closing of Rs. 582.90 on the BSE.
The scrip opened at Rs. 582.90 and touched a high and low of Rs. 591.75 and Rs. 579.45 respectively. A total of 83,12,596 (NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.

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