Category: Earnings

One-time gain boosts Tata Steel’s Q4 profit

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Tata Steel delivered a net profit of Rs 14,688 crore for the fourth quarter compared to a net loss of Rs 1,168 crore as their performance was boosted by an exceptional gain of Rs Rs 11,376 crore, primarily due to non-cash gain in Europe.

The gains from the formation of a new British Steel Pension Scheme (BSPS) were partially offset by provisions in India amounting to Rs 1,607 crore, which is primarily on account of provision for statutory demand and claims related to environment and mining matters.

For Tata Steel the net profit number is least important as the geographic break is what the street tracks.

Shares in the company were down about 2 percent in morning trade on the NSE.

Tata Steel delivered a strong set of results with more good than bad as its India operations beat expectations, while international operations, namely Europe and South East Asia, were a bit of a disappointment.

India operations did well despite a shutdown at the Kalinganagar steel plant, with volumes down 6% year-over-year at 3.03 million tonnes compared to 3.21 million tonnes.

However, Earnings Before Interest Tax Depreciation and Amortisation came in at the upper end of estimates at Rs 15932 per tonne, beating expectations of Rs 15,000 per tonne.

Europe was a bit of a disappointment as sales volumes fell 11% 2.55 million tonnes compared to 2.85 million tonnes year-over-year, and higher input costs impacted core earnings per tonne coming in at $69 per tonne compared to expectations of $75 per tonne.

The street was expecting a surprise in Europe after a strong set of results from ArcelorMittal’s European units.

South East Asia, which is the smallest part of Tata Steel’s business, reported a disappointing 34% fall in its absolute EBITDA at Rs 95 crore, compared to Rs 145 crore the previous year.

What bodes well for Tata Steel is that steel prices are higher by about Rs 2000 per tonne, compared to the fourth quarter of financial year 2018. The higher prices should help the company post a strong performance in the first quarter of financial year 2019.

All eyes would be on the acquired Bhushan steel asset, and how that fits into Tata Steel’s scheme of things

Brokerages are impressed with Tata Steel’s performance. CLSA said the margin outlook remains good and retained a “Buy” rating on the stock, with a price target of Rs 920 per share.

The brokerage also raised its per-share earnings estimate by between 7-11% on the back of strong steel prices for the financial year 2019-20. Valuations are reasonable at about 6.3 times the Enterprise Value to EBITDA ratio for financial year 2019.

Credit Suisse also maintained an “outperform” rating with a price target of Rs 860 on the back of positive commentary from Tata Steel’s management.

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Tata Steel reports Q4 net profit at Rs 14,688 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Domestic steel giant Tata Steel today reported consolidated net profit of Rs 14,688.02 crore for the fourth quarter ended March 31, 2018.

The company had clocked a net loss of Rs 1,168.02 crore in the corresponding quarter of the previous fiscal, it said in a BSE filing.

The total consolidated income of the company increased to Rs 36,407.19 crore in January-March 2018, from Rs 35,457.06 crore in the same quarter of FY17.

The total expenses of the company stood at Rs 32,626.42 crore during the quarter under review as against Rs 31,132.02 crore in the year-ago period.

T V Narendran, CEO & MD of the company, said: “Tata Steel performance has been robust in FY18 driven by our strong execution strategy and supported by favourable global demand-supply balance. During the year, our Indian operations delivered volume growth better than the market on the back of the ramp-up at our Kalinganagar plant and the strength of our marketing network and brand equity”.

He said growth was broad-based across marketing segments and added that Tata Steel Europe had a good quarter despite currency headwinds.

“The UK pension scheme restructuring process has also been completed. The 50:50 JV discussion with thyssenkrupp is progressing well and we are committed towards building a strong European portfolio,” Narendran said.

He added that the company continues to execute its strategy of expanding footprint in India.

“Kalinganagar Phase 2 expansion is progressing well, which will take our capacity from 13 million tonnes (MT) to 18 MT of crude steel. I am also happy to share that NCLT has given its approval on our resolution plan for Bhushan Steel. We have also received CCI approval for this transaction,” he said.

On the steel outlook, he said the company is closely watching the developments in global steel trade because of US’ protectionist measures and added, “However, we continue to be bullish on steel prices and spreads with improving demand situation in India”.

Koushik Chatterjee, Executive Director and CFO, said FY18 has been a good year for the company and the group delivered a strong top and bottom line growth.

“We completed 2 large financing transactions, which apart from providing funds also gives us significant flexibility to pursue our growth plans. Our USD 1.3 billion international bond issue in January 2018 helped us extend our maturity profile. We also successfully completed a USD 2bn Rights Issue, one of the largest equity issuance in India,” he said.

The shares of the company closed at Rs 622.05 apiece on the BSE, down 0.32% from the previous close.

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JK Lakshmi Cement Q4 net profit jumps 62% to Rs 34 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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JK Lakshmi Cement today reported 62.30% surge in its standalone net profit to Rs 33.84 crore for the fourth quarter ended March 31, 2018.

The company had posted a net profit of Rs 20.85 crore in the January-March period a year ago, JK Lakshmi Cement said in a BSE filing.

JK Lakshmi Cement’s total income during the quarter under review stood at Rs 923.32 crore. It was Rs 930.57 crore in the corresponding period previous fiscal.

Meanwhile, JK Lakshmi Cement informed that its result was not comparable.

“With introduction of GST, revenue from operations for current quarter & year are not comparable with corresponding quarter & year, since sales in current year from July 1, 2017 are net of GST whereas excise duty was included in revenue from operations and formed part of expenses till June 30, 2017,” the company said.

Its total expenses stood at Rs 889.57 crore. It was Rs 925.03 crore in the year-ago period.

For the entire 2017-18, JK Lakshmi Cement’s consolidated net profit was down 50.30% at Rs 43.36 crore as against Rs 87.26 crore in 2016-17.

Its total income was at Rs 3,928.75 crore as against Rs 3,413.69 crore in 2016-17.

Meanwhile, in a separate filing JK Lakshmi Cement informed BSE that its board in a meeting held today recommended a dividend of Rs 0.75 per equity share of Rs 5 each (15%) for the financial year ended March 31, 2018.

Shares of JK Lakshmi Cement today settled at Rs 383.10 on BSE, up 0.04% from previous close.

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JSW Steel posts record quarterly profit

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s JSW Steel posted record quarterly net profit on Wednesday, nearly tripling from last year, largely beating market estimates thanks to higher commodity prices and spreads.

The company’s fourth-quarter net profit climbed to 29.96 billion rupees ($441.50 million), against 10.14 billion rupees in the same period last year, it said.

Analysts had expected net profit of 18.13 billion rupees, according to Thomson Reuters data.

Total revenue from operations rose 16.2% to 208.17 billion rupees and the steelmaker also said it achieved record crude steel production in the quarter at 4.31 million tonnes, up 5% year on year.

JSW said it expects 3% year-on-year growth in crude steel production to 16.75 million tonnes for the 2018-19 financial year.

Ahead of the results, shares in JSW Steel closed with a gain of 0.6%.

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TVS Motor Q4 profit up 31% at Rs 166 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Chennai-based TVS Motor Co. today reported 30.63% jump in standalone net profit to Rs 165.61 crore for the March quarter riding on robust sales growth.

The company had posted a net profit of Rs 126.77 crore in the year-ago period, TVS Motor said in a BSE filing.

Its revenue from operations during the fourth quarter of last financial year ended March 31, 2018 stood at Rs 3,992.76 crore. It was at Rs 3,076.02 crore in the same period of 2016-17.

Sales were at 8,89,141 units during the quarter under review, as against 6,74,870 units in the year-ago period, up 31.74%, it said.

Motorcycle sales grew by 61.1% to 3.46 lakh units in fourth quarter of 2017-18 as against 2.15 lakh units in the same quarter a year ago.

Scooter sales were at 2.80 lakh units as compared to 2.23 lakh units, a growth of 25.5 per cent.

The company’s total exports grew by 45.3 per cent to 1.61 lakh units in the fourth quarter of 2017-18 as compared to 1.11 lakh units in the year-ago period.

TVS Motor Co said its board has not recommend any further dividend for the last fiscal year as two interim dividends have already been declared earlier aggregating to Rs 3.30 per share (330 per cent) on a share of Re 1 each.

For 2017-18, standalone profit was at Rs 662.59 crore as against Rs 558.08 crore in 2016-17 — a growth of 18.72 per cent.

Standalone revenue from operations for FY18 was at Rs 15,472.88 crore. In FY17, it was at Rs 13,190.06 crore.

The TVS Motor stock closed 1.66 per cent down at Rs 611.05 on BSE.

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ITC net profit stands at Rs 2,933 crore, higher than previous Q4 numbers

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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ITC, hotel, retail and cigarette major, posted a net profit at Rs 2,933 crore as against the Rs 2,669 crore posted in the same period in the last financial year.

The company’s cigarette EBIT stands at Rs 3,506 crore, around Rs 200 crore higher than the last financial year’s fourth quarter. The EBITDA margin stands at 39.1% and the EBITDA stands at Rs 4,144 crore, lower than the estimate of Rs 4,204 crore.

ITC’s hotel business EBIT stands at Rs 75.4 crore as against the last financial’s Q4 number which was pegged at Rs 66.9 crore. The FMCG sector of the conglomerate reported an EBIT of Rs 91.2 crore this year.

The board recommended a dividend of Rs 5.15 per share.

The company, in its exchange filing, said that the cigarette prices were consequent to the introduction of Goods and Services Tax and the excise duties which were not excluded in the total income from operations for the quarter.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow