TATA STEEL Announces Quarterly Results (1QFY20); Net Profit Down 66.7%

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TATA STEEL Announces Quarterly Results (1QFY20); Net Profit Down 66.7%
Thu, 8 Aug

TATA STEEL has announced its results for the quarter ended June 2019. Here is a detailed performance review of the same:

TATA STEEL Quarterly Financials

No. of Mths
Qtr. Ending
3
Jun-18*
3
Mar-19*
3
Jun-19*
QoQ ChangeYoY Change
Net SalesRs m378,328424,239359,471-15.3%-5.0%
Other incomeRs m3,4734,8992,511-48.7%-27.7%
TurnoverRs m381,801429,137361,982-15.6%-5.2%
ExpensesRs m313,651349,106305,702-12.4%-2.5%
Gross profitRs m61,24175,24853,929-28.3%-11.9%
DepreciationRs m18,05618,80520,82810.8%15.4%
InterestRs m16,70119,37818,064-6.8%8.2%
Profit before taxRs m29,95641,96417,547-58.2%-41.4%
TaxRs m11,03718,99111,238-40.8%1.8%
Profit after taxRs m18,91922,9736,309-72.5%-66.7%
Gross profit margin%16.217.715.0
Effective tax rate%36.845.364.0
Net profit margin%5.05.41.7
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter fell 5.0% on a year-on-year (YoY) basis. The expenses were down by 2.5% YoY during the same period.
  • The company's operating profit declined by 11.9% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 15.0% in 1QFY20 as against 16.2% in 1QFY19.
  • Depreciation charges increased by 15.4% and finance costs increased by 8.2% YoY, respectively.
  • Other income declined by 27.7% YoY during the quarter.
  • Net profit for the quarter declined by 66.7% YoY. Net profit margins during the quarter declined from 5.0% in 1QFY19 to 1.7% in 1QFY20.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter fell 15.3% on a quarter-on-quarter (QoQ) basis. The expenses were down by 12.4% QoQ during the same period.
  • The company's operating profit declined by 28.3% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 15.0% in 1QFY20 as against 17.7% in 4QFY19.
  • Net profit for the quarter declined by 72.5% QoQ, while net profit margins declined from 5.4% in 4QFY19 to 1.7% in 1QFY20.

To see how TATA STEEL has performed over the last eight quarters,please visit here.

TATA STEEL Share Price Performance

Over the last one year,TATA STEEL share price has moved down from Rs 577.7 to Rs 366.3, registering a Loss of Rs 211.4 or around 36.6%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 8,973.4 (up 1.1%). Over the last one year it has moved down from 13,104.2 to 8,973.4, a gain of 4,131 points (down 31.5%).

Overall, the S&P BSE SENSEX is down 0.9% over the year.

Current Valuations

At the current price of Rs 366.3, the price to earnings (P/E) ratio of TATA STEEL stands at 4.6 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.6 times.

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