Tata Steel Q4 Results FY2023, Profit at Rs. 1,566 crores
On 2nd May 2023, Tata Steel announced its quarterly results for the last quarter of FY2023.
Tata Steel Financial Highlights:
- Consolidated Revenues for FY2023 stood at Rs 2,43,353 crores and were broadly similar on YoY basis despite a volatile operating environment across geographies. During the quarter, Consolidated Revenues stood at Rs 62,962 crores
- Consolidated EBITDA stood at Rs 32,698 crores, with an EBITDA margin of 13%. EBITDA was at Rs 7,225 crores, with an EBITDA margin of 11% for the quarter.
- Consolidated Profit after Tax stood at Rs 8,075 crores for FY2023 and Rs. 1,566 crores for Q4FY23.
- Net debt decreased by Rs.3,900 crores to Rs.67,810 crores. Liquidity remains strong at Rs 28,688 crores. Net debt to EBITDA was 2.07x
Tata Steel Business Highlights:
- Neelachal Ispat Nigam Limited has steadily ramped up during the last two quarters and is presently operating with a run rate of 1 million tons (crude steel plus pig iron) on an annualized basis.
- The company has spent Rs 4,396 crores on capital expenditure during the quarter and Rs 14,142 crores for the full year. Work on 5 MTPA expansion at Kalinganagar and setting up an EAF mill of 0.75 MTPA in Punjab is progressing.
- India achieved the highest ever annual crude steel production of 19.88 million tons and highest ever deliveries of 18.87 mn tons. Automotive was up 5% YoY, Branded Products and Retail were up 11% YoY while Industrial products & projects were up 14% YoY. EBITDA stood at Rs.27,561 crores, which translates to an EBITDA per ton of Rs 14,606.
- Europe revenues were £9,293 million and EBITDA was £477 million, translating to an EBITDA per ton of £58. The product mix has been affected due to the ongoing upgradation of the Cold Mill in Ijmuiden (CM21). The relining of one of the blast furnaces at Ijmuiden commenced in early April
- The Board of Directors recommends a dividend of Rs. 3.60 per fully paid-up equity share of the face value of Re 1/- each.
Commenting on the results, Mr. T V Narendran, Chief Executive Officer & Managing Director: “FY2023 saw our India crude steel production growing to around 19.9 million tons, with a 65% share of our overall volumes. Deliveries were in line with production with domestic deliveries growing 11% YoY and driving product mix improvement. The quarter also saw strong momentum with deliveries growing by 9% QoQ to 5.15 million tons. We have multiple projects ongoing at various locations in India as we work towards 40 MTPA by 2030. The phased commissioning of our expansion at Kalinganagar continues with FHCR coils now being produced at the CRM complex. Within 9 months of acquisition, we have successfully ramped up Neelachal Ispat Nigam Limited to 1 million tons on an annualized basis. We have also progressed on our plans to set up our first EAF mill in Punjab. During the quarter, Europe deliveries were up 9% QoQ. The Cold Mill upgrade at Ijmuiden is progressing and we have commenced the relining of BF6 in early April.
Sustainability is at the core of our strategy and Tata Steel has committed to Net Zero by 2045. Our route and pace of decarbonization across geographies will be calibrated for each location based on the local regulatory framework, government support, and willingness of customers to pay for higher-cost green steel. We continue to pursue multiple initiatives to reduce our emissions including a recently initiated trial for injecting large quantities of hydrogen into one of our blast furnaces at Jamshedpur, a global first. I am also happy to share that Tata Steel has been recognized by Worldsteel as a Sustainability champion for the sixth time in a row and by World Economic Forum as Global Diversity, Equity & Inclusion Lighthouse.”
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