Tata Steel Ltd's Q4FY19 consolidated net profit declines 76.7% yoy to Rs2,382cr : Beats Estimates

The company’s consolidated revenue stood at Rs42,424cr, up 25.9% yoy and 9.2% qoq.

Apr 26, 2019 03:04 IST India Infoline Research Team

Tata Steel Ltd Q4FY19

Consolidated Results Q4FY19: (Rs. in cr)

Q4FY19 YoY (%)
Revenue 42,424 25.9
EBITDA 7,513 17.4
EBITDA Margin (%) 17.7 [128]
Net Profit (adjusted) 2,382 [76.7]
***EBITDA margin change is bps
Tata steel Q4FY19 results were better than expectations on EBITDA and PAT fronts. The revenue grew by 25.9% yoy and 9.2% qoq to Rs42,424cr against median consensus estimates of Rs43,970cr. EBITDA stood at Rs7,513cr, up 17.4% yoy and 11.9% qoq against median consensus estimate of Rs6,733cr. EBITDA margin contracted by 128bps yoy but expanded by 43bps qoq to 17.7%. Reported net profit (including discontinued operations and after non-controlling interest) declined by 76.7% yoy but grew by 4.2% qoq to Rs2,382cr against median consensus estimate of Rs2,327cr.

  • Revenue growth was driven by higher delivery volumes across India and Tata Steel Europe ; partly offset by softness in steel realisations
  • Q4FY19 Consolidated steel production and deliveries grew 27% yoy and 29% yoy, respectively; India production and deliveries increased by 46% yoy and 55% yoy in Q4FY19, respectively.
  • Indian operations contributed 63% out of consolidated deliveries of 7.52 mn tonnes.
  • Tata Steel Europe Q4FY19 sales improved as production grew by 17% qoq with better plant availability.
  • Gross debt decreased by Rs8,781cr during Q4FY19.
  • Tata Steel and thyssenkrupp AG have recently submitted a comprehensive package of proposed remedies after the European Commission issued its ‘Statement of Objection’ for the proposed European steel JV.

Technical View:

Tata Steel Ltd ended at Rs. 510.90, down by 14.4 points or 2.74% from its previous closing of Rs. 525.30 on the BSE.
The scrip opened at Rs. 523.30 and touched a high and low of Rs. 529.35 and Rs. 509 respectively. A total of 88,38,914 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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