Tata Steel Ltd Q3 net up 159% yoy at Rs9,573cr on 64.2% yoy growth in EBITDA at Rs15,853cr

4 Feb 2022 , 11:03 PM

Tata Steel Ltd reported 44.95% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs60,783cr. On a sequential basis, the revenues were up by 0.66%.

During the December 2021 quarter, crude steel production of India operations increased by 4% yoy and 2% sequentially at 4.81 MT. Interesting sales to automobile OEMs remained steady despite 9% cut in auto production.

Europe revenues were up 56% yoy and 7% sequentially at GBP2.25 billion. Tata Steel spend Rs.2,790cr for capex at Kalinganagar. Gross debt increased to Rs72,603; however, net debt was lower with Rs17,376cr repayments.

For the Dec-21 quarter, the operating profits were up on a yoy basis by 64.3% at Rs15,853cr. During the quarter, the EBITDA of the India business was up 41.7% yoy at Rs12,434cr.

However, the India steel EBITDA was lower sequentially due to a spike in operating costs, especially a more than proportionate rise in material costs and other expenses. Tata Steel India and Tata Steel Europe contributed the bulk of the EBITDA growth in the quarter.

Operating margins improved sharply from 23.02% in the Dec-20 quarter to 26.08% in the Dec-21 quarter. The operating margins were lower on a sequential basis by 144 bps.

Net Profit after tax (PAT) for the Dec-21 quarter was up 158.92% yoy at Rs9,573cr on operating performance getting transmitted to PAT. However, the company also had sharply higher gains from associates and joint ventures in the latest quarter.

PAT margins improved from 8.82% in the Dec-20 quarter to 15.75% in the Dec-21 quarter. The PAT margins were higher on a sharply lower on sequential basis by 400 bps.

Financial highlights for Dec-21 compared yoy and sequentially

	Tata Steel
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 60,783	₹ 41,935	44.95%	₹ 60,387	0.66%
Operating Profit (Rs cr)	₹ 15,853	₹ 9,652	64.25%	₹ 16,618	-4.60%
Net Profit (Rs cr)	₹ 9,573	₹ 3,697	158.92%	₹ 11,918	-19.68%
Diluted EPS (Rs)	₹ 79.06	₹ 31.86		₹ 99.08
Operating Margins	26.08%	23.02%		27.52%
Net Margins	15.75%	8.82%		19.74%