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Tata Steel Ltd (Q1 FY14)

Tata Steel reported strong numbers during the quarter on the back of higher realizations in its European operations

January 01, 1970 5:30 IST | India Infoline News Service
CMP Rs242, Target Rs316, Upside 30.7%

  • Tata Steel reported strong numbers during the quarter on the back of higher realizations in its European operations
  • Standalone operations too managed to reported better numbers on account of strong steel sales
  • Adjusted EBIDTA/ton at Corus jumped from US$33 in Q4 FY13 to US$44 on the back of higher realizations and higher production volumes
  • South East Asia operations EBIDTA was below estimate due to the pressure on margins between rebar and scrap
  • Operating profit growth of 8.4% yoy was curtailed by forex loss
  • PAT of Rs11.3bn was way above our estimate due to a tax write back of Rs4bn
  • Maintain BUY with a revised 9-month price target of Rs316
Result table (Standalone)
(Rs mn)
Q1 FY14
Q1 FY13
% yoy
Q4 FY13
% qoq
Net sales
328,048
338,212
(3.0)
346,505
(5.3)
Material costs
(131,786)
(150,498)
(12.4)
(150,684)
(12.5)
Power and fuel costs
(14,634)
(13,906)
5.2
(13,468)
8.7
Personnel costs
(47,912)
(47,825)
0.2
(48,593)
(1.4)
Other overheads
(96,836)
(91,951)
5.3
(90,070)
7.5
Operating profit
36,880
34,033
8.4
43,689
(15.6)
OPM (%)
11.2
10.1
118 bps
12.6
(137) bps
Depreciation
(14,033)
(13,080)
7.3
(14,696)
(4.5)
Interest
(9,924)
(9,690)
2.4
(9,947)
(0.2)
Other income
1,836
2,894
(36.5)
(679)
-
PBT
14,760
14,157
4.3
18,368
(19.6)
Tax
(3,514)
(8,986)
(60.9)
(11,915)
(70.5)
Effective tax rate (%)
23.8
63.5

64.9

Other prov / minority etc
(33)
808
-
1,490
-
Adjusted PAT
11,213
5,979
87.5
7,942
41.2
Adj. PAT margin (%)
3.4
1.8
165 bps
2.3
113 bps
Extra ordinary items

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