TATA STEEL Announces Quarterly Results (3QFY19); Net Profit Up 48.7%

Mon, 11 Feb

TATA STEEL has announced its results for the quarter ended December 2018. Here is a detailed performance review of the same:

TATA STEEL Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-17*	3 Sep-18*	3 Dec-18*	QoQ Change	YoY Change
Net Sales	Rs m	334,466	435,441	412,199	-5.3%	23.2%
Other income	Rs m	2,259	3,544	2,115	-40.3%	-6.4%
Turnover	Rs m	336,725	438,985	414,314	-5.6%	23.0%
Expenses	Rs m	277,497	346,246	344,966	-0.4%	24.3%
Gross profit	Rs m	46,712	90,833	67,557	-25.6%	44.6%
Depreciation	Rs m	14,751	19,079	19,255	0.9%	30.5%
Interest	Rs m	13,273	21,531	19,400	-9.9%	46.2%
Profit before tax	Rs m	20,947	53,767	31,018	-42.3%	48.1%
Tax	Rs m	9,508	23,264	14,006	-39.8%	47.3%
Profit after tax	Rs m	11,439	30,504	17,012	-44.2%	48.7%
Gross profit margin	%	14.0	20.9	16.4
Effective tax rate	%	45.4	43.3	45.2
Net profit margin	%	3.4	6.9	4.1

Year-on-Year Performance:

• The company's operating income during the quarter grew 23.2% on a year-on-year (YoY) basis. The expenses were up by 24.3% YoY during the same period.
• The company's operating profit increased by 44.6% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 16.4% in 3QFY19 as against 14.0% in 3QFY18.
• Depreciation charges increased by 30.5% and finance costs increased by 46.2% YoY, respectively.
• Other income declined by 6.4% YoY during the quarter.
• Net profit for the quarter increased by 48.7% YoY. Net profit margins during the quarter increased from 3.4% in 3QFY18 to 4.1% in 3QFY19.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 5.3% on a quarter-on-quarter (QoQ) basis. The expenses were down by 0.4% QoQ during the same period.
• The company's operating profit declined by 25.6% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 16.4% in 3QFY19 as against 20.9% in 2QFY18.
• Net profit for the quarter declined by 44.2% QoQ, while net profit margins declined from 6.9% in 2QFY18 to 4.1% in 3QFY19.

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 up from Rs 683.7 to Rs 465.0, registering a Loss of Rs 218.7 or around 32.0%.

Meanwhile, the S&P BSE METAL Index is trading at Rs 10,061.0 (down 2.0%). Over the last one year it has moved down from 15,100.6 to 10,061.0, a gain of 5,040 points (down 33.4%).

Overall, the S&P BSE SENSEX is up 5.6% over the year.

Current Valuations

At the current price of Rs 465.0, the price to earnings (P/E) ratio of TATA STEEL stands at 2.1 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 0.8 times.