X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Tata Steel: Bleeding Continues... - Views on News from Equitymaster
StockSelect
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Tata Steel: Bleeding Continues...
Feb 24, 2016

Tata Steel has announced the third quarter results of financial year 2015-2016 (3QFY16). While the topline declined by 16.6% YoY, the bottomline was in red in 3QFY16.

Performance summary

  • Total Income from operations declined by 16.6% YoY due to lower steel realisations across geographies.
  • Operating Margin has also declined by 6.4% to 2.8% from 9.15% during 3QFY15.
  • Other income declined by 19.3% YoY.
  • Bottom line was in red during the quarter on back of decline in operating profit, reporting of exceptional item which consist of non-cash write down of fixed assets relating to the European operations, charge related to Employee Separation Scheme in Tata Steel India and restructuring and other provisions relating to the European operations..
  • Net profit for the 9MFY16 declined by 90.6% YoY.

Consolidated Financial Performance

(Rs m) 3QFY15 3QFY16 Change 9mFY15 9mFY16 Change
Total Income 336,332 280,390 -16.6% 1,058,376 876,440 -17.2%
Total Expenses 305,558 272,633 -10.8% 948,448 822,636 -13.3%
Operating profit (EBITDA) 30,774 7,757 -74.8% 109,928 53,804 -51.1%
Operating profit margin (%) 9.1% 2.8%   10.4% 6.1%  
Other income 1,191 962 -19.3% 6568 37965 478.1%
Interest 11,674 9,641 -17.4% 36526 31109 -14.8%
Depreciation 14,511 11,327 -21.9% 44309 38500 -13.1%
Profit before tax & exceptional items 5,780 (12,249)   35,661 22,161 -37.9%
Exceptional Item   (7,118)   8,825 -11,171  
Tax 4,467 2,434 -45.5% 27,019 9,989 -63.0%
Minority Interest 156 310 98.1% -21 369  
Share of profit / (loss) of associates 102 219 115.3% 41 274 569.0%
Net Profit 1,571 (21,272)   17,488 1,644 -90.6%
Net profit margin (%) 0.5% -7.6%   1.7% 0.2%  
No. of shares (m)         971.2  
Basic diluted earnings per share (Rs) ^         -56.73  
P/E ratio (x) *         N.A.  

(^annualised, * on trailing twelve month earnings)

To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report
  2. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any financial interest in the subject company.
  3. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  4. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the investor could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the investor could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the investor should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the investor could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TATA STEEL SHARE PRICE


Aug 18, 2017 (Close)

TRACK TATA STEEL

  • Track your investment in TATA STEEL with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

TATA STEEL 8-QTR ANALYSIS

Detailed Quarterly Results With Charts

COMPARE TATA STEEL WITH

MARKET STATS