Tata Steel reports net profit of Rs1,566 cr for Q4
09 May 2023
Tata Steel has reported a consolidated net (after-tax) profit of Rs1,566.24 crore for the fourth quarter of FY23 against a Rs2,501.95 crore loss in the previous of the fiscal, helped by gains in its domestic business. This, however, is an 83.95 per cent drop compared to a profit of Rs9,756.2 crore recorded in the fourth quarter of FY22.
Tata Steel's consolidated revenue from operations for Q4 FY23 stood at Rs62,961.54 crore, up 10.3 per cent from Rs57,083.56 crore in the previous quarter of the fiscal, but 9.2 per cent lower compared to the revenue of Rs69,323.5 crore in the same quarter a year ago.
Tata Steel India's revenue for Q4 FY23 rose 12.5 per cent over the previous quarter to Rs34,275.25 crore, but declined by 6.55 per cent year-on-year.
The company's board of directors has recommended a dividend of 360 per cent and announced the record date for the same.
Tata Steel’s profitability increased, mainly on its India gains. The company reported an EBITDA of Rs7,225 crore in Q4FY23 against Rs4,154 crore in the previous quarter and Rs15,174 crore in Q4FY22. EBITDA margin for Q4 FY23 stood at 11 per cent.
Revenue from Tata Steel Europe in rupee terms stood at Rs22,036.15 crore in Q4FY23, showing a growth of 6.22 per cent sequentially but down 16.5 per cent year-on-year.
As per earning figures released by Tata Steel, Europe revenues for the January-March 2022-23 quarter stood at £9,293 million with EBITDA of £477 million, translating to an EBITDA of £58 per ton. The ongoing upgradation of the Cold Mill in Ijmuiden (CM21) has affected the company’s product mix, according to the company.
Tata Steel Europe’s steel production in Q4 FY23 stood at 7.80 million tonnes against 7.56 million tonnes in Q3 of the same fiscal, and 7.62 million tonnes of the same quarter of the previous fiscal. Deliveries stood at 7.78 million tons, up from 7.15 million tons in the previous quarter but lower compared to 8.01 million tonnes in the year-before quarter.
Against this, Tata Steel India, recorded the highest-ever annual crude steel production of 19.88 million tonnes and the highest-ever deliveries of 18.87 million tonnes in the current fiscal.
For full fiscal (April-March 2022-23), Tata Steel’s consolidated revenues stood at Rs2,43,353 crore, while consolidated EBITDA stood at Rs32,698 crore, with an EBITDA margin of around 13 per cent. Consolidated net profit stood at Rs8,075 crore.
"FY2023 saw our India crude steel production growing to around 19.9 million tonnes, with a 65 per cent share of our overall volumes. Deliveries were in line with production with domestic deliveries growing 11 per cent YoY and driving product mix improvement. The quarter also saw strong momentum with deliveries growing by 9 per cent sequentially to 5.15 million tonnes," T V Narendran, chief executive officer and managing director, said,
Koushik Chatterjee, executive director and chief financial officer said Tata Steel's India business generated a margin of 20 per cent while Europe reports a margin of 5 per cent due to higher input costs. The consolidated return on invested capital (ROIC) for the full fiscal stood at 15 per cent.
He said, the company remains focused on cost optimisation, operational improvements, and working capital management to maximise cashflows and will aim to resume our deleveraging journey in FY2024.
Tata Steel's board of directors, at its meeting on Tuesday, recommended a dividend of Rs3.60 per equity share of face value Re1 each for FY23.
The dividend is subject to shareholders' approval at the company’s annual general meeting (AGM) scheduled for 5 July 2023. If approved, Tata Steel the dividend will be paid from 19 July 2023.