Tata Steel Q1 Results FY2023, PAT at Rs. 7714 crores

On 25th July 2022, Tata Steel announced its quarterly results for the first quarter of FY2023.

Q1FY23 Key Highlights:

- Tata Steel reported its consolidated EBITDA at Rs. 15,047 crores, seeing a decline of 7.43%. On a QoQ basis, EBITDA margin improved to 24% while EBITDA per ton increased by Rs. 3,780 to Rs. 22,717. 

- The company reported its profit after tax stood at Rs. 7,714 crores, seeing a drop of 21.03%. 

-  Net debt was reported at Rs.54,504 crores. Net Debt to EBITDA was at 0.87 times and Net Debt to Equity at 0.48 times. 

- The 6 MTPA Pellet plant at Kalinganagar will be commissioned in 3QFY23 followed by the Cold Roll Mill complex and the 5 MTPA expansion. 

- Tata Steel Long Products, a subsidiary of Tata Steel, completed the acquisition of Neelachal Ispat Nigam Limited on 4th July 2022.

Market-wise Highlights:

India:

- Deliveries in the Indian market were marginally lower by 2% YoY due to moderation in exports following the imposition of a 15% export duty. Consequently, domestic deliveries were successfully ramped up by leveraging a strong marketing network and an agile business model.  

- Tata Steel reported its revenue per ton at Rs. 83,625 per ton in the Indian market due to long-term contracts and product mix. 

- Tata Steel reported EBITDA at Rs.9,582 crores, which translates to an EBITDA per ton of Rs 23,557. 

Europe:

- The company reported revenue per ton for the European market at £ 1,248 per ton due to long-term contracts and product mix. 

- The company achieved the highest ever quarterly EBITDA at  £ 621 million, which translates to an EBITDA per ton of £ 290.

Commenting on the Results, Mr. T V Narendran, Chief Executive Officer & Managing Director, said: “This has been a challenging quarter for the Global and Indian economy with rising interest rates, supply chain constraints, and a slowdown in China due to COVID. Despite these multiple headwinds, Tata Steel has delivered a strong performance with an improvement in margins. Our strong marketing franchise and superior business model in India enabled us to successfully pivot and increase our domestic deliveries to counter the 15% duty imposed on steel exports in the middle of the quarter. We continue to drive value accretive growth in India backed by investments in customer relationships, brands, and distribution networks and remain well positioned to benefit from the buoyant automotive & retail housing demand and the government spending on infrastructure. Our European business delivered a sharp improvement in performance as long-term contracts and product mix helped drive a strong increase in realizations. We are geared towards commissioning the 6 MTPA pellet plant at Kalinganagar in 3QFY23 which will drive cost savings followed by the CRM complex and the 5 MTPA expansion project. Our subsidiary, Tata Steel Long Products, has completed the strategic acquisition of Neelachal Ispat Nigam Limited and will drive the growth of our long products business. We continue to progress on our sustainability journey and are committed to being net zero by 2045. We are also focused on making Tata Steel more diverse & inclusive and were ranked 3 rd among manufacturing companies by Great Place to Work in India.”