Tata Steel profit halves to Rs 9,098 crore in FY19, revenue surges 27% on higher volumes, capacity ramp-up

Tata Steel on Thursday reported a 48.78 per cent year-on-year decline in consolidated profit after tax (PAT) at Rs 9,098 crore for the year ended March 31, 2019.

"The company's consolidated PAT stood at Rs 17,763 crore in the year-ago period, Tata Steel said in a filing to the Bombay Stock Exchange on Thursday.

Consolidated revenue increased 27 per cent to Rs 157,669 crore in FY19 as compared to Rs 124,110 crore in the previous year, driven by higher volumes and better realizations.

For the financial year 2018-19, the adjusted operating profit (EBITDA) grew 55 per cent to Rs 30,734 crore versus Rs 19,768 crore in FY18.

FY19 consolidated steel production as well as deliveries jumped 17 per cent y-o-y to 27.11 mn tons and 26.80 mn tons, respectively, on the back of the acquisition of Tata Steel BSL as well as ramp-up at both Kalinganagar and Tata Steel BSL. India production surged 35 per cent y-o-y to 16.81 mn tons while deliveries grew 33 per cent to 16.26 mn tons on yearly basis.

For the January-March quarter, the steel maker's consolidated PAT fell sharply by 84.37 per cent to Rs 2,295.25 crore as compared to Rs14,688.02 crore during the fourth quarter ended 31 March 2018.

The steel giant's consolidated revenue grew 26 per cent y-o-y to Rs 42,424 crore in Q4 FY19, while adjusted EBITDA increased 33 per cent to Rs 7,814 crore as compared to Rs 5,857 crores in Q4 FY18.

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Gross debt decreased by Rs 8,781 crore during March quarter. "Despite the liquidity issues in the domestic markets, we were able to extend our debt maturity profile by successfully raising Rs 4,315 crore through 15 years non-convertible debentures and completing the long-term financing for Tata Steel BSL," the company said.

"The liquidity position of the group remains robust at Rs 15,284 crore comprising of Rs 5,937 crore in cash and cash equivalents and Rs 9,347 crore in undrawn bank lines," it added.

The board of directors of the company has recommended a dividend of Rs 13 per fully paid equity share and Rs 3.25 per partly paid equity share.

TV Narendran, chief executive officer and managing director, said, "Tata Steel continues to grow its footprint in India in terms of volumes, downstream capability and product portfolio... Despite subdued steel markets and weak growth in our key customer segments, this year our volumes in India grew by over 33% leading to a significant improvement in our overall profitability and cashflows."

Commenting on the merger of Tata Steel BSL with itself, Narendran said, "The proposed merger of Tata Steel BSL with Tata Steel will accelerate operational synergies and simplify our corporate structure. Our 5 MTPA Kalinganagar Phase II expansion will help us to further consolidate our presence in India and strengthen our financial performance."

Meanwhile, shares of Tata Steel closed trade at Rs 32.60 apiece, up 1.09 per cent, on the Bombay Stock Exchange on Thursday.

Edited by Chitranjan Kumar

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