|
Tata Steel published stand alone
audited financial results for the nine months ended 31st
December 2007 on 31st January 2008. The enclosed
consolidated financial results of the Company for the
nine months ended 31st December, 2007 were reviewed by
the auditors and approved by the Board of Directors of
the Company.
Highlights for the nine months ended
31st December 2007:
-
Profit before interest, exceptional
items and taxes for the nine months ended 31st December
2007 was Rs.10,889 crores against Rs.5,101 crores for
the same period of the last financial year.
-
Diluted EPS before exceptional items
(not annualized) for the nine months ended 31st December
2007 was Rs.73.05 against Rs.58.44 for the same period
in the last financial year.
| |
Quarter
ended on 31.12.2007 |
Quarter
ended on 31.12.2006 |
Nine Months
ended on 31.12.2007 |
Nine Months ended on 31.12.2006 |
Financial Year ended on 31.03.2007
|
| 1 |
Net Sales/
Income from Operations |
Rs. Crores |
31,898.54 |
5,970.63 |
95,485.74 |
17,743.18 |
25,213.31 |
| 2 |
Other Income |
" |
197.49 |
101.13 |
481.92 |
348.41 |
438.07
|
| 3 |
Total Income (1+2) |
|
32,096.03 |
6,071.76 |
95,967.66 |
18,091.59 |
25,651.38
|
| 4 |
Total Expenditure |
|
|
|
|
|
|
| |
a) (Increase)
/decrease in stock in trade |
" |
190.07 |
(141.13) |
(687.00) |
(373.07) |
(540.22) |
| |
b) Material cost |
" |
14,255.86 |
1,918.54 |
43,471.37 |
6,226.63 |
9,171.39
|
| |
c) Staff Cost |
" |
4,166.72 |
478.41 |
12,116.65 |
1,349.25 |
1,884.97
|
| |
d) Purchase of Power |
" |
1,223.31 |
319.70 |
3,504.41 |
959.62 |
1,315.39
|
| |
e) Freight and handling |
" |
1,672.22 |
371.41 |
4,542.67 |
1,039.86 |
1,508.37
|
| |
f) Depreciation |
" |
1,011.25 |
245.13 |
3,142.45 |
729.32 |
1,010.98
|
| |
g) Other Expenditure |
" |
6,447.58 |
1,133.23 |
18,988.07 |
3,058.62 |
4,423.26
|
| |
h) Total Expenditure ( 4a to 4g) |
" |
28,967.01 |
4,325.29 |
85,078.62 |
12,990.23 |
18,774.14
|
| 5 |
Profit before Interest exceptional items and taxes (3-4) |
" |
3,129.02 |
1,746.47 |
10,889.04 |
5,101.36 |
6,877.24
|
| 6 |
Interest ( net) |
" |
1,080.88 |
96.23 |
3,357.69 |
224.20 |
411.19
|
| 7 |
Exceptional Items |
|
|
|
|
|
|
| |
a) Employee Separation Compensation |
" |
(65.15) |
(49.50) |
(176.55) |
(112.65) |
(153.03)
|
| |
b) Contribution For Sports Infrastructure |
" |
- |
- |
(150.00) |
- |
-
|
| |
c) Exchange Gain / (Loss) |
" |
44.83 |
- |
688.67 |
- |
-
|
| |
d) Actuarial Gain / (Loss) on Funds for Employee Benefits |
" |
145.12 |
- |
6,116.50 |
- |
-
|
| |
Total of Exceptional items ( 7a to 7d) |
" |
124.80 |
(49.50) |
6,478.62 |
(112.65) |
(153.03) |
| 8 |
Profit before tax ( 3-4-6+7) |
" |
2,172.94 |
1,600.74 |
14,009.97 |
4,764.51 |
6,313.02
|
| 9 |
Tax Expense |
" |
770.69 |
546.09 |
2,962.16 |
1,558.41 |
2,147.41
|
| 10 |
Net Profit (+) / Loss (-) (8-9) |
" |
1,402.25 |
1,054.65 |
11,047.81 |
3,206.10 |
4,165.61
|
| 11 |
Share of Profit of Associates |
" |
51.98 |
21.07 |
130.45 |
53.56 |
79.18
|
| 12 |
Minority Interest |
" |
(38.69) |
(21.11) |
(59.99) |
(46.76) |
(67.52) |
| 13 |
Profit after Minority Interest and share of Profits of Associates ( 10 +11+12) |
" |
1,415.54 |
1,054.61 |
11,118.27 |
3,212.90 |
4,177.27
|
| 14 |
Diluted Earnings per Share (not annualised) ( before exceptional items) |
Rupees |
19.12 |
19.04 |
73.05 |
58.44 |
75.74
|
The previous period figures do not
include the financial results of Tata Steel UK (which
includes Corus Group) and the current period includes
financial results of Tata Steel UK, reviewed by the
auditors.
Report on Financial performance
Quarter ended 31st December 2007
• Turnover
Excluding turnover of Tata Steel UK
of Rs. 23,867 crores for the quarter, turnover
registered an increase of Rs. 2,157 crores. The increase
was mainly due to increases in Tata Steel Indian
operations (Rs. 472 crores), Natsteel (Rs.1,135 crores)
and Tata Steel Thailand (Rs.554 crores). The increase in
Tata Steel Indian operations were primarily due to
increase in prices, whereas the increase in Natsteel and
Tata Steel Thailand was attributable to both price
increases as well as increase in volume.
• Total Expenditure
Total expenditure for the quarter
ended 31st December 2007 amounted to Rs.28,967 crores ,
(including total expenditure of Rs. 22,808 crores of
Tata Steel UK), against Rs.4,325 crores during the
previous year.
• Material cost
The material cost excluding of Tata
Steel U.K of Rs. 11,253 crores increased from Rs. 1,919
crores in the previous year same period to Rs. 3,003 cr
during the current year. While Increase in volume of
operations as well as increase in prices of inputs
(scrap) consumed by Natsteel resulted in an increase of
Rs. 887 crores, Tata Steel Thailand contributed Rs. 226
crores to the increase on account of increase in
volumes. Increase in Natsteel group is also due to
increase in purchases of raw materials by TS Resources
Australia for use by Tata Steel India.
• Other Expenditure
The Other expenditure excluding that
of Tata Steel UK (Rs. 5,053 crores) was Rs.1,395 crores
in Q3 FY08 against Rs. 1,133 crores in Q3 FY07. The
increases were in Tata Steel Thailand, Natsteel and the
Indian operations. While the increase in Indian
operations by Rs. 58 crores was mainly due to increases
in conversion charges for converting chrome ore and
manganese ore to ferro chrome and ferro manganese /
silico manganese, the increases in Natsteel and Tata
Steel Thailand were mainly on account of increased
volume of operations. . Major company wise breakup of
the other expenditure is shown below:
| Figs in
Rs.crores |
|
Other Expenditure |
Q3 Fy08 |
Q3 Fy07 |
Inc/(dec) |
| Tata Steel |
1,008 |
950 |
58 |
| Corus |
5,053 |
- |
5,053 |
| Natsteel |
161 |
112 |
49 |
| TSTH |
159 |
93 |
65 |
| TSAH |
13 |
16 |
(3) |
| Others |
201 |
92 |
109 |
| Eliminations & Adjustments |
(146) |
(129) |
(17) |
|
Total |
6,448
|
1,133
|
5,314
|
• Interest
The interest charges (net) were Rs.
1,081 crores in Q3 FY08 (Rs. 96 crores in Q3 FY07).
Other than interest charge of Rs. 606 crores of Tata
Steel UK, remaining increase is mainly due to increase
in borrowings, to fund acquisition cost of Corus, by
various entities including TSAH and Tata Steel India.
• Exceptional items
The employee separation
compensation was Rs. 65 crores in Q3 FY08 (Q3 FY07:
Rs. 50 crores). The discounting rate changed from 7.50%
to 8.00 % in Q3 FY07 reducing the charge for employee
separation in the last financial year while the
discounting rate remained at 8.00% in the Q3 FY08
increasing the charge for employee separation
compensation in Q3 FY08 against Q3 FY07.
Due to rupee appreciation against
major foreign currencies in Q3 FY08, the company had a
net exchange gain of Rs. 45 crores.
The actuarial gain on funds for
employee benefits amounted to Rs.145 crores for the
quarter ended 31st December 2007. The gain represents
reduction in pension liability arising out of higher
discount rate, reflecting improved yields on bonds. The
gains or losses for employee benefits is required to be
accounted for, through the P&L Account under Indian GAAP
while this is adjusted through reserves under IFRS.
The Profit after tax inclusive
of share of profits of associates and net of minority
interest, amounted to Rs.1,416 crores for the quarter
ending 31st December 2007 compared to Rs.1,055 crores
for the corresponding period of the previous year.
Earnings per share for
relevant periods are given below:
| |
Q3FY08 |
Q3FY07 |
| Basic earnings (before exceptional items) |
21.22 |
19.04 |
| Diluted earnings (before exceptional items) |
19.12 |
19.04 |
| Basic earnings (after exceptional items) |
23.27 |
18.19 |
| Diluted earnings (after exceptional items) |
20.40 |
18.19 |
| (Not annualized) |
Nine months ended 31st December
2007
• Turnover
Excluding turnover of Tata Steel UK
of Rs. 73,676 crores for the nine months, turnover
registered an increase of Rs. 4,200 crores. The increase
was mainly due to increases in Tata Steel Indian
operations (Rs. 1,339 crores), Natsteel (Rs.2,372 crores)
and Tata Steel Thailand (Rs.1,066 crores). The increase
in Tata Steel Indian operations were primarily due to
increase in prices, whereas the increase in Natsteel and
Tata Steel Thailand was attributable to both price
increases as well as increase in volume.
• Total Expenditure
Total expenditure for the nine months
ended 31st December 2007 amounted to Rs.85,079crores,
(including total expenditure of Rs. 68,576 Cr of Tata
Steel UK), against Rs.12,990 crores during the previous
year.
• Material cost
The material cost excluding of Tata
Steel UK of Rs. 35,409 crores increased from Rs. 6,227
crores in the previous year same period to Rs. 8,062
crores during the current year. While Increase in volume
of operations as well as increase in prices of inputs
(scrap) consumed by Natsteel resulted in an increase of
Rs. 2,014 crores, Tata Steel Thailand contributed Rs.
663 crores to the increase on account of increase in
volumes. Increase in Natsteel group is also due to
increase in purchases of raw materials by TS Resources
Australia for use by Tata Steel India.
• Other Expenditure
The Other expenditures excluding that
of Tata Steel UK (Rs.15,199 crores) were Rs.3,789 crores
in 9m FY 08 against Rs. 3,059 crores in 9m FY07. The
increases were primarily in Tata Steel India (Rs.348
crores), Natsteel (Rs.102 crores) and Tata Steel
Thailand (Rs.180 crores). While the increases in
Natsteel and Tata Steel Thailand were attributable
mainly to increase in volume of operations, the
increases in Indian operations were mainly due to
increases in conversion charges for converting chrome
ore and manganese ore to ferro chrome and ferro
manganese / silico manganese Major company wise breakup
of the other expenditure is shown below:
| Figs in
Rs.crores |
|
Other Expenditure |
9m Fy08 |
9m Fy07 |
Inc/(dec) |
| Tata Steel |
2,871 |
2,523 |
348 |
| Corus |
15,199 |
- |
15,199 |
| Natsteel |
394 |
292 |
102 |
| TSTH |
451 |
270 |
180 |
| TSAH |
45 |
16 |
29 |
| Others |
396 |
258 |
138 |
| Eliminations & Adjustments |
(368) |
(301) |
(68) |
|
Total |
18,988
|
3,059
|
15,929
|
• Interest
The interest charges (net) were Rs.
3,358 crores in 9mFY08 (Rs. 224 crores in 9mFY07). Other
than interest charge of Rs. 2,236 crores of Tata Steel
UK, remaining increase is mainly due to increase in
borrowings, to fund acquisition cost of Corus, by
various entities including TSAH and Tata Steel India.
Exceptional items
The employee separation
compensation was Rs. 177 crores in 9mFY08 (9mFY07:
Rs. 113 crores). The discounting rate changed from 7.50%
to 8.00 % in nine months ended 31st December 2006
reducing the charge for employee separation in the last
financial year while the discounting rate decreased from
8.25% to 8.00% in the current financial year increasing
the charge for employee separation compensation in the
current financial year.
A contribution of Rs. 150 crores
towards development of sports infrastructure has
been recognized as an exceptional expenditure during the
current fiscal year.
Due to rupee appreciation against
major foreign currencies in the current financial year,
the company had a net exchange gain of Rs. 689
crores mainly due to revaluation the forex loans and
deposits. This has been recognized as an exceptional
income during the nine months ended 31st December 2007.
The actuarial gain on funds for
employee benefits amounted to Rs. 6,117 crores for
the nine months ended 31st December 2007. The gain is on
account of recovery on bond yields used to discount
scheme liabilities, and recovery in asset values of the
scheme funds. The gains or losses for employee benefits
is required to be accounted for, through the P&L Account
under Indian GAAP while this is adjusted through
reserves under IFRS.
The Profit after tax inclusive
of share of profits of associates and net of minority
interest, amounted to Rs.11,118 crores for the nine
months ending 31st December 2007 compared to Rs.3,213
crores for the corresponding period of the previous
year.
Earnings per share for
relevant periods are given below:
| |
9mFY08
|
9mFY07 |
| Basic earnings (before exceptional
items) |
76.48 |
58.44 |
| Diluted earnings (before exceptional
items) |
73.05 |
58.44 |
| Basic earnings (after exceptional items) |
183.28 |
56.46 |
| Diluted earnings (after exceptional
items) |
172.74 |
56.46 |
| (Not annualized) |
|
