Tata Steel Q3 Results FY2023, Net loss at Rs. 2501.95 crores

On 4th February,  Tata Steel announced its results for the third quarter of FY2023.

Key Highlights:

- During the quarter, Consolidated Revenues stood at Rs 57,084 crores
-  EBITDA was Rs 4,154 crores, with an EBITDA margin of ~7%
- Tata Steel reported a Net Loss at Rs. 2501.95
- Net debt stood at Rs.71,706 crores, with Net Debt to EBITDA at 1.76x and Net Debt to Equity at 0.65x

Business Highlights:

- The company spent Rs 3,632 crores on capex during the quarter. At Kalinganagar, phased commissioning of 6 MTPA pellet plant has begun. Work on the 2.2 MTPA Cold Roll Mill complex and 5 MTPA expansion is ongoing.
- In Punjab, work has commenced on enabling activities with respect to 0.75 MTPA Electric Arc Furnace, which is an important milestone in our journey to reduce emissions
- The British Steel Pension Scheme (BSPS) with Tata Steel UK as Sponsor has completed a substantial part of its de-risking journey with ~60% of its liabilities insured. The buy-in transaction along with actuarial movements has resulted in a non-cash deferred tax expense of Rs 1,783 crores and increased the overall deferred tax expense for the quarter to Rs 2,150 crores. 
-  India deliveries stood at 4.74 million tons and were up 7% YoY primarily driven by 11% growth in domestic deliveries, which has also enabled an improvement in product mix.
- Neelachal Ispat Nigam Limited (NINL) has begun operations and is being ramped to a rated capacity of around 1 MTPA. Tata Tiscon rebars are being made from NINL billets.

Commenting on the results, Mr. T V Narendran, Chief Executive Officer & Managing Director: “Tata Steel has delivered steady growth in India volumes despite the volatile operating environment. Domestic deliveries stood at around 13.7 million tons in the first nine months of the financial year and were up 4% YoY. Broad-based growth was witnessed across most segments. For the quarter, domestic deliveries were up 11% YoY and grew at a faster pace than India's apparent steel consumption aiding in retaining the market leadership position across chosen segments. Our crude steel production touched 5 million tons in 3QFY23 for the first time in India, with Neelachal Ispat Nigam limited commencing operations. We are presently expanding our capacities across multiple sites at Tata Steel Kalinganagar, Neelachal Ispat Nigam Limited, and the Electric Arc Furnace at Ludhiana in Punjab and at our downstream plants across India. Moving to Europe, our deliveries were lower in 9MFY23 due to a slowdown in demand. Recession concerns weighed on steel prices, which coupled with elevated energy costs affected our performance. Looking ahead, there is a visible pick up in steel prices across key regions an improved China demand outlook, and sustained spending on infrastructure in India. We continue to progress on our sustainability journey to achieve net zero by 2045 through multiple pathways. Finally, I am happy to share that World Economic Forum has recognized Tata Steel as Global Diversity Equity & Inclusion Lighthouse and we have also been awarded Great Place to Work certification for the sixth time in a row.”