Tata Steel
The company posted much better than expected numbers for Q4FY14, posting a consolidated net profit at Rs.1036 crore, up from Rs.503 crore in Q3FY14. Ditto for the full year – FY14 consolidated net profit was at Rs.3595 crore v/s net loss of Rs.7058 crore in FY13. Net sales for the quarter was at Rs.42428 crore, up 15% (QoQ). EBITDA was at Rs.4917 crore, up 25%.
The performance was led mainly by sales from Europe. Q4 FY14 turnover from Europe was at Rs.24,376 crore, EBITDA in Q4 FY’14 was at Rs.817 crore, down from Rs.860 crore in Q3 though up from Rs.613 crore in Q4FY13. The loss at EBIT level though remained at Rs.16 crore, v/s loss of Rs.2 crore in Q3 but much better than Rs.213 crore loss in Q4FY13. Q4 FY14 production of 4.04 million tonnes was 3% higher than the 3.91 million tonnes produced in Q3 FY14 and 26% higher than the 3.22 million tonnes produced in Q4 FY13. In terms of deliveries, during the quarter, deliveries stood at 4.07 million tones, 27% higher on QoQ and 19% higher YoY. Regarding India operations, turnover during the quarter rose 20% sequentially, EBITDA came in higher by 29% while net profit was up 30%. SE Asia did not too well, with topline and bottomline coming in lower.
The gross debt of the company as at 31st March 2014 stood at Rs.78,699 crore and net debt at Rs.67,326 crore. The company is sitting on a consolidated liquidity of Rs.18,000 crore and during FY14, it’s capex was at Rs.16,500 crore.
Looking ahead, the company has stated that market conditions in India will improve by H2FY14 while EU demand is expected to show further momentum in current Q1 though SE Asia, given the Chinese imports and political turmoil in Thailand is expected to show some more distress.