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TATA STEEL LONG PROD 2021-22 Annual Report Analysis
Wed, 22 Jun

TATA STEEL LONG PROD has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

TATA STEEL LONG PROD Income Statement Analysis

  • Operating income during the year rose 43.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 4.7% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 16.9% in FY22 as against 23.1% in FY21.
  • Depreciation charges decreased by 2.3% and finance costs decreased by 53.1% YoY, respectively.
  • Other income grew by 75.7% YoY.
  • Net profit for the year grew by 10.1% YoY.
  • Net profit margins during the year declined from 12.0% in FY21 to 9.3% in FY22.

TATA STEEL LONG PROD Income Statement 2021-22

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Net Sales Rs m 47,499 68,016 43.2%
Other income Rs m 783 1,375 75.7%
Total Revenues Rs m 48,282 69,391 43.7%
Gross profit Rs m 10,984 11,504 4.7%
Depreciation Rs m 3,272 3,196 -2.3%
Interest Rs m 2,346 1,100 -53.1%
Profit before tax Rs m 6,149 8,584 39.6%
Tax Rs m 429 2,285 433.2%
Profit after tax Rs m 5,720 6,299 10.1%
Gross profit margin % 23.1 16.9
Effective tax rate % 7.0 26.6
Net profit margin % 12.0 9.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Enclosed: Invitation to Access Our Latest Research Project

TATA STEEL LONG PROD Balance Sheet Analysis

  • The company's current liabilities during FY22 stood at Rs 33 billion as compared to Rs 21 billion in FY21, thereby witnessing an increase of 59.9%.
  • Long-term debt stood at Rs 134 billion as compared to Rs 13 billion during FY21, a growth of 914.4%.
  • Current assets rose 767% and stood at Rs 147 billion, while fixed assets rose 21% and stood at Rs 57 billion in FY22.
  • Overall, the total assets and liabilities for FY22 stood at Rs 204 billion as against Rs 64 billion during FY21, thereby witnessing a growth of 219%.

TATA STEEL LONG PROD Balance Sheet as on March 2022

No. of Mths Year Ending 12 Mar-21* 12 Mar-22* % Change
Networth Rs m 25,941 32,005 23.4
 
Current Liabilities Rs m 20,687 33,083 59.9
Long-term Debt Rs m 13,202 133,916 914.4
Total Liabilities Rs m 64,135 204,427 218.7
 
Current assets Rs m 16,994 147,412 767.4
Fixed Assets Rs m 47,140 57,015 20.9
Total Assets Rs m 64,135 204,427 218.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TATA STEEL LONG PROD Cash Flow Statement Analysis

  • TATA STEEL LONG PROD's cash flow from operating activities (CFO) during FY22 stood at Rs 18 billion, an improvement of 4.2% on a YoY basis.
  • Cash flow from investing activities (CFI) during FY22 stood at Rs -94 billion on a YoY basis.
  • Cash flow from financial activities (CFF) during FY22 stood at Rs 119 billion, an improvement of 865% on a YoY basis.
  • Overall, net cash flows for the company during FY22 stood at Rs 43 billion from the Rs 2 billion net cash flows seen during FY21.

TATA STEEL LONG PROD Cash Flow Statement 2021-22

Particulars No. of months 12 12 % Change
Year Ending Mar-21 Mar-22
Cash Flow from Operating Activities Rs m 16,897 17,610 4.2%
Cash Flow from Investing Activities Rs m 911 -94,048 -
Cash Flow from Financing Activities Rs m -15,594 119,233 -
Net Cash Flow Rs m 2,214 42,795 1,833.2%
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TATA STEEL LONG PROD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 139.7, an improvement from the EPS of Rs 126.8 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 554.5, stands at 4.0 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 0.8 times, while the price to sales ratio stands at 0.4 times.
  • The company's price to cash flow (P/CF) ratio stood at 4.3 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Sales per share (Unadj.) Rs 1,053.2 1,508.1
TTM Earnings per share Rs 126.8 139.7
Diluted earnings per share Rs 126.8 139.7
Price to Cash Flow x 3.6 4.3
TTM P/E ratio x 5.7 4.0
Price / Book Value ratio x 0.9 1.3
Market Cap Rs m 23,882 40,580
Dividends per share (Unadj.) Rs 5.0 12.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TATA STEEL LONG PROD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 4.5x during FY22, from 0.8x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 8.8x during FY22, from 3.6x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company declined and down at 19.7% during FY22, from 22.1% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company declined and down at 5.8% during FY22, from 21.7% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company declined and down at 3.6% during FY22, from 12.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-21* 12 Mar-22*
Current ratio x 0.8 4.5
Debtors’ Days Days 1 0
Interest coverage x 3.6 8.8
Debt to equity ratio x 0.5 4.2
Return on assets % 12.6 3.6
Return on equity % 22.1 19.7
Return on capital employed % 21.7 5.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



To see how TATA STEEL LONG PROD has performed over the last 5 years, please visit here.

TATA STEEL LONG PROD Share Price Performance

Over the last one year, TATA STEEL LONG PROD share price has moved down from Rs 926.1 to Rs 554.5, registering a loss of Rs 371.7 or around 40.1%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 15,246.4 (down 3.6%). Over the last one year it has moved down from 18,258.7 to 15,246.4, a loss of 3,012 points (down 16.5%).

Overall, the S&P BSE SENSEX is down 1.0% over the year.

(To know more, check out historical annual results for TATA STEEL LONG PROD and quarterly results for TATA STEEL LONG PROD)

Annual Report FAQs

What is the current share price of TATA STEEL LONG PROD?

TATA STEEL LONG PROD currently trades at Rs 632.0 per share. You can check out the latest share price performance of TATA STEEL LONG PROD here...

What was the revenue of TATA STEEL LONG PROD in FY22? How does it compare to earlier years?

The revenues of TATA STEEL LONG PROD stood at Rs 69,391 m in FY22, which was up 43.7% compared to Rs 48,282 m reported in FY21.

TATA STEEL LONG PROD's revenue has grown from Rs 8,268 m in FY18 to Rs 69,391 m in FY22.

Over the past 5 years, the revenue of TATA STEEL LONG PROD has grown at a CAGR of 70.2%.

What was the net profit of TATA STEEL LONG PROD in FY22? How does it compare to earlier years?

The net profit of TATA STEEL LONG PROD stood at Rs 6,299 m in FY22, which was up 10.1% compared to Rs 5,720 m reported in FY21.

This compares to a net loss of Rs -5,162 m in FY20 and a net profit of Rs 1,244 m in FY19.

Over the past 5 years, TATA STEEL LONG PROD net profit has grown at a CAGR of 45.4%.

What does the cash flow statement of TATA STEEL LONG PROD reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of TATA STEEL LONG PROD reveals:

  • Cash flow from operations increased in FY22 and stood at Rs 17,610 m as compared to Rs 16,897 m in FY21.
  • Cash flow from investments decreased in FY22 and stood at Rs -94,048 m as compared to Rs 911 m in FY21.
  • Cash flow from financial activity increased in FY22 and stood at Rs 119,233 m as compared to Rs -15,594 m in FY21.

Here's the cash flow statement of TATA STEEL LONG PROD for the past 5 years.

(Rs m)FY18FY19FY20FY21FY22
From Operations4111,003-3,35716,89717,610
From Investments-2,131-124-35,744911-94,048
From Financial Activity-202-37138,049-15,594119,233
Net Cashflow-1,922507-1,0522,21442,795

What does the Key Ratio analysis of TATA STEEL LONG PROD reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of TATA STEEL LONG PROD reveals:

  • Operating profit margins witnessed a fall and stood at 16.9% in FY22 as against 23.1% in FY21.
  • Net profit margins declined from 12.0% in FY21 to 9.3% in FY22.
  • Debt to Equity ratio for FY22 stood at 4.2 as compared to 0.5 in FY21.

Here's the ratio/financial analysis of TATA STEEL LONG PROD for the past 5 years.

 FY18FY19FY20FY21FY22
Operating Profit Margin (%)23.314.6-0.223.116.9
Net Profit Margin (%)18.012.5-14.812.09.3
Debt to Equity Ratio (x)0.00.01.30.54.2

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