Financial Statements Q1 FY 2014-15

13 Aug 2014 12:20

RNS Number : 0346P

Tata Steel Limited

13 August 2014

Standalone Financial Results for the Quarter ended on 30th June 2014
PART I								Rs Crores
Particulars					Quarterended on30.06.2014	Quarterended on31.03.2014	Quarterended on30.06.2013	Financial Year ended on 31.03.2014
					Audited	Unaudited	Audited	Audited
	1	Income from operations
		a)	Net sales / income from operations (net of excise duty)		10,377.73	12,041.92	9,371.40	41,271.24
		b)	Other operating income		90.53	149.30	83.99	439.79
		Total income from operations (net) [1(a) + 1(b)]			10,468.26	12,191.22	9,455.39	41,711.03
	2	Expenses
		a)	Changes in inventories of finished goods, work-in-progress and stock-in-trade		(343.46)	296.41	(329.44)	(155.18)
		b)	Purchases of finished, semi-finished steel & other products		67.92	54.00	143.07	352.63
		c)	Raw materials consumed		2,563.99	2,743.23	2,305.51	9,677.71
		d)	Employee benefits expense		1,130.26	789.02	1,002.78	3,673.08
		e)	Purchase of power		721.28	617.68	652.53	2,564.61
		f)	Freight and handling charges		690.92	769.61	634.82	2,755.08
		g)	Depreciation and amortisation expense		493.26	461.63	459.58	1,928.70
		h)	Other expenses		2,381.49	2,812.50	2,211.79	10,026.20
		Total expenses [2(a) to 2(h)]			7,705.66	8,544.08	7,080.64	30,822.83
	3	Profit / (Loss) from operations before other income, finance costs, exceptional items and tax [1 - 2]			2,762.60	3,647.14	2,374.75	10,888.20
	4	Other income			143.50	52.95	144.21	787.64
	5	Profit / (Loss) from operations before finance costs, exceptional items and tax [3 + 4]			2,906.10	3,700.09	2,518.96	11,675.84
	6	Finance costs			492.34	464.64	466.44	1,820.58
	7	Profit / (Loss) before exceptional items and tax [5 - 6]			2,413.76	3,235.45	2,052.52	9,855.26
	8	Exceptional items :
		a)	Profit on sale of non current investments		787.96	-	-	-
		b)	Provision for diminution in value of investments/doubtful advances		-	(141.76)	-	(141.76)
		Total exceptional items [8(a) + 8(b)]			787.96	(141.76)	-	(141.76)
	9	Profit / (Loss) before tax [ 7 + 8 ]			3,201.72	3,093.69	2,052.52	9,713.50
	10	Tax expense
		a)		Current tax	893.27	996.61	665.79	3,098.02
		b)		Deferred tax	40.47	118.44	30.62	203.29
		Total tax expense [10(a) + 10(b)]			933.74	1,115.05	696.41	3,301.31
	11	Net Profit / (Loss) for the period [9 - 10]			2,267.98	1,978.64	1,356.11	6,412.19
	12	Paid-up equity share capital[Face value Rs.10 per share]			971.41	971.41	971.41	971.41
	13	Reserves excluding revaluation reserves						60,176.58
	14	Basic earnings per share (not annualised) - in Rupees(after exceptional items)			22.90	19.93	13.51	64.21
	15	Diluted earnings per share (not annualised) - in Rupees(after exceptional items)			22.90	19.93	13.51	64.21

PART II
Select information for the Quarter ended on 30th June 2014
			Quarterended on30.06.2014	Quarter ended on 31.03.2014	Quarterended on30.06.2013	Financial Year ended on 31.03.2014
A	Particulars of Shareholding
1	Aggregate of public shareholding
	Number of shares		64,32,73,897	63,78,25,723	64,08,50,241	63,78,25,723
	% of shareholding		67.87%	67.69%	67.79%	67.69%
2	Promoters and promoter group shareholding
	a)	Pledged / encumbered
		- Number of shares	2,74,00,000	2,24,00,000	2,00,00,000	2,24,00,000
		- % of shares to total share holding of promoter & promoter group	9.00%	7.36%	6.57%	7.36%
		- % of shares to total share capital of the company	2.82%	2.31%	2.06%	2.31%
	b)	Non-encumbered
		- Number of shares	27,71,14,362	28,21,14,362	28,45,14,362	28,21,14,362
		- % of shares to total share holding of promoter & promoter group	91.00%	92.64%	93.43%	92.64%
		- % of shares to total share capital of the company	28.53%	29.04%	29.29%	29.04%

Particulars			Quarterended on30.06.2014
B	Investor complaints
	Pending at the beginning of the Quarter		3
	Received during the quarter		32
	Disposed off during the quarter		31
	Remaining unresolved at the end of the quarter		4

Standalone Segment Revenue, Results and Capital Employed
				Rs Crores
Particulars	Quarterended on30.06.2014	Quarterended on31.03.2014	Quarterended on30.06.2013	Financial year ended on 31.03.2014
	Audited	Unaudited	Audited	Audited
Revenue by Business Segment:
Steel business	9,967.06	11,304.72	8,966.09	38,688.35
Ferro Alloys and Minerals	447.35	825.26	492.75	2,921.66
Others	589.26	616.84	522.12	2,209.58
Total	11,003.67	12,746.82	9,980.96	43,819.59
Less: Inter segment revenue	535.41	555.60	525.57	2,108.56
Net sales / income from operations	10,468.26	12,191.22	9,455.39	41,711.03

Segment results before finance costs, exceptional items and tax:
Steel business	2,801.69	3,453.36	2,477.45	10,724.95
Ferro Alloys and Minerals	106.01	255.93	107.95	800.74
Others	16.44	24.49	7.53	43.25
Unallocated income / (expenditure)	(18.04)	(33.69)	(73.97)	106.90
Total Segment results before finance costs, exceptional items and tax	2,906.10	3,700.09	2,518.96	11,675.84
Less: Finance costs	492.34	464.64	466.44	1,820.58
Profit / (Loss) before exceptional items and tax	2,413.76	3,235.45	2,052.52	9,855.26
Exceptional items:
Profit on sale of non current investments	787.96	-	-	-
Provision for diminution in value of investments/doubtful advances	-	(141.76)	-	(141.76)
Profit / (Loss) before tax	3,201.72	3,093.69	2,052.52	9,713.50
Less: Tax expense	933.74	1,115.05	696.41	3,301.31
Net Profit / (Loss)	2,267.98	1,978.64	1,356.11	6,412.19

Segment Capital Employed:
Steel business	40,732.32	38,860.47	33,071.44	38,860.47
Ferro Alloys and Minerals	323.91	288.96	260.66	288.96
Others	142.55	131.36	225.07	131.36
Unallocated	(1,644.84)	(83.16)	1,782.43	(83.16)
Total	39,553.94	39,197.63	35,339.60	39,197.63

Consolidated Financial Results for the Quarter ended on 30th June 2014
PART I								Rs Crores
Particulars					Quarter ended on 30.06.2014	Quarter ended on 31.03.2014	Quarter ended on 30.06.2013	Financial Year ended on 31.03.2014
					Unaudited	Unaudited	Unaudited	Audited
	1	Income from operations
		a)		Net sales / income from operations (net of excise duty)	36,143.27	42,017.63	32,558.61	1,47,347.28
		b)		Other operating income	283.94	410.42	246.18	1,266.27
		Total income from operations (net) [1(a) + 1(b)]			36,427.21	42,428.05	32,804.79	1,48,613.55
	2	Expenses
		a)		Changes in inventories of finished goods, work-in-progress and stock-in-trade	(592.64)	2,275.19	(1,466.03)	(514.67)
		b)		Purchases of finished, semi-finished steel & other products	4,128.80	4,238.53	4,204.06	17,008.21
		c)		Raw materials consumed	11,010.12	12,602.67	10,440.58	46,242.98
		d)		Employee benefits expense	5,634.28	5,355.35	4,791.17	20,303.41
		e)		Purchase of power	1,606.67	1,595.19	1,463.41	6,035.77
		f)		Freight and handling charges	2,190.28	2,643.65	1,985.29	9,007.92
		g)		Depreciation and amortisation expense	1,550.28	1,471.87	1,403.27	5,841.22
		h)		Other expenses	8,177.13	8,706.39	7,698.27	34,118.92
		Total expenses [2(a) to 2(h)]			33,704.92	38,888.84	30,520.02	1,38,043.76
	3	Profit / (Loss) from operations before other income, finance costs, exceptional items and tax [1 - 2]			2,722.29	3,539.21	2,284.77	10,569.79
	4	Other income			216.14	111.70	183.63	516.81
	5	Profit / (Loss) from operations before finance costs, exceptional items and tax [3 + 4]			2,938.43	3,650.91	2,468.40	11,086.60
	6	Finance costs			1,252.37	1,169.35	992.44	4,336.83
	7	Profit / (Loss) before exceptional items and tax [5 - 6]			1,686.06	2,481.56	1,475.96	6,749.77
	8	Exceptional items :
		a)	Profit on sale of non current investments		1,314.17	-	17.76	18.20
		b)	Provision for diminution in value of investments			(0.42)	-	(0.42)
		c)	Provision for impairment of non-current assets		(1,576.65)	(45.42)	-	(45.42)
		Total exceptional items [8(a) to 8(c)]			(262.48)	(45.84)	17.76	(27.64)
	9	Profit / (Loss) before tax [ 7 + 8 ]			1,423.58	2,435.72	1,493.72	6,722.13
	10	Tax expense
		a)	Current tax		1,026.78	1,060.07	766.63	3,482.64
		b)	MAT credit		-	(0.21)	-	(0.21)
		c)	Deferred tax		53.63	304.67	(415.24)	(424.27)
		Total tax expense [10(a) to 10(c)]			1,080.41	1,364.53	351.39	3,058.16
	11	Net Profit / (Loss) for the period [9 - 10]			343.17	1,071.19	1,142.33	3,663.97
	12	Minority interest			(14.40)	(38.10)	2.92	(69.92)
	13	Share of profit / (loss) of associates			8.56	2.78	(6.24)	0.84
	14	Net Profit / (Loss) after taxes, minority interest and share of profit /(loss) of associates [ 11 + 12 + 13 ]			337.33	1,035.87	1,139.01	3,594.89
	15	Paid-up equity share capital[Face value Rs.10 per share]			971.41	971.41	971.41	971.41
	16	Reserves excluding revaluation reserves						39,560.55
	17	Basic earnings per share (not annualised) - in Rupees(after exceptional items)			3.02	10.20	11.28	35.19
	18	Diluted earnings per share (not annualised) - in Rupees(after exceptional items)			3.02	10.20	11.28	35.19

Consolidated Segment Revenue, Results and Capital Employed
				Rs Crores
Particulars	Quarter ended on 30.06.2014	Quarter ended on 31.03.2014	Quarter ended on 30.06.2013	Financial Yearended on 31.03.2014
	Unaudited	Unaudited	Unaudited	Audited
Revenue by Business Segment:
Steel business	34,960.49	40,573.36	31,349.23	1,42,115.87
Others	3,400.63	3,995.37	3,244.60	14,346.56
Unallocated	337.42	247.30	239.36	1,120.94
Total	38,698.54	44,816.03	34,833.19	1,57,583.37
Less: Inter segment revenue	2,271.33	2,387.98	2,028.40	8,969.82
Net sales / income from operations	36,427.21	42,428.05	32,804.79	1,48,613.55

Segment results before finance costs, exceptional items and tax:
Steel business	3,268.68	4,046.66	2,639.47	12,470.70
Others	109.07	181.06	216.72	829.74
Unallocated income / (expenditure)	599.76	452.54	269.30	1,835.59
Less: Inter segment eliminations	1,039.08	1,029.35	657.09	4,049.43
Total Segment results before finance costs, exceptional items and tax	2,938.43	3,650.91	2,468.40	11,086.60
Less: Finance costs	1,252.37	1,169.35	992.44	4,336.83
Profit / (Loss) before exceptional items and tax	1,686.06	2,481.56	1,475.96	6,749.77
Exceptional items:
Profit on sale of non current investments	1,314.17	-	17.76	18.20
Provision for diminution in value of investments	-	(0.42)	-	(0.42)
Provision for impairment of non-current assets	(1,576.65)	(45.42)	-	(45.42)
Profit / (Loss) before tax	1,423.58	2,435.72	1,493.72	6,722.13
Less: Tax expense	1,080.41	1,364.53	351.39	3,058.16
Net Profit / (Loss)	343.17	1,071.19	1,142.33	3,663.97

Segment Capital Employed:
Steel business	1,05,267.87	1,05,554.03	94,107.20	1,05,554.03
Others	2,849.54	4,306.79	5,327.04	4,306.79
Unallocated	(4,426.04)	(1,375.57)	2,581.24	(1,375.57)
Inter segment eliminations	47.50	3.41	2.32	3.41
Total	1,03,738.87	1,08,488.66	1,02,017.80	1,08,488.66

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Notes:

1. The results have been reviewed by the Audit Committee in its meeting held on August 12, 2014 and were approved by the Board of Directors in its meeting of date.

2. The actuarial gains and losses on funds for employee benefits (pension plans) of Tata Steel Europe Limited for the period from April 1, 2008 have been accounted in "Reserves and Surplus" in the consolidated financial statements in accordance with IFRS/IND AS principles and as permitted by Accounting Standard 21. Had the Company recognised changes in actuarial valuations of pension plans of Tata Steel Europe in the statement of profit and loss, the consolidated profit after taxes, minority interest and share of profit of associates for the quarter ended June 30, 2014 would have been lower by Rs.452.46 crores and the consolidated profit after taxes, minority interest and share of profit of associates for the quarter ended June 30, 2013 would have been higher by Rs.854.99 crores.

3. During the quarter, the Company divested its entire stake in its joint venture The Dhamra Port Company Limited (DPCL) to Adani Ports and Special Economic Zone Limited. Exceptional item 8(a) in the consolidated results includes profit of Rs.1,270.21 crores (Rs.787.96 crores in the stand-alone) on sale of this non-current investment. Exceptional item 8(c) in the consolidated results represents the non-cash write down of goodwill and other assets of Rs. 451.25 crores and Rs.1,125.40 crores respectively in its joint venture Rio Tinto Benga (Mauritius) Limited.

4. During the quarter, the Company and some of its subsidiaries have revised depreciation rate on certain fixed assets as per the useful life specified in the Companies Act, 2013 or re-assessed by the Company based on technical evaluation. Accordingly, depreciation of Rs.136.82 crores (net of deferred tax Rs.69.64 crores) [Rs.129.01 crores (net of deferred tax Rs.66.43 crores) in the stand-alone] on account of assets whose useful life is already exhausted as on 1st April, 2014 has been adjusted to retained earnings. Had there been no change in useful life of assets, depreciation for the quarter would have been lower by Rs.22.74 crores (Rs.22.33 crores in the stand-alone).

5. The Company has been operating its mines with all statutory clearances, such as environmental clearance, forest clearances, consent to operate etc. and also submitted applications for the renewal of the mining leases as per the time stipulated under law. The applications are presently pending before the respective State Governments of Odisha and Jharkhand.

During the quarter under review, the mining operations in Odisha were suspended for a fortnight following the interim order by the Honourable Supreme Court of India. This led to some disruption in the iron ore availability from the mines covered under the order for use in Jamshedpur operations. Pending renewal of the mining leases, the State Government issued Express Orders that enabled the Company to resume its mining operations within the quarter in two iron ore mines and two manganese mines in Odisha.

The Express Orders for the Khondbond Iron Ore Mines and Sukinda Chromite Mines are still pending with the State Government. Consequently, the mining operations and expansion of the mining capacity have been suspended and this has led to the stoppage of the operations of Ferro Alloys plants at Bamnipal and its wholly owned subsidiary, TS Alloys since the first week of August 2014.

6. The Company, through its Singapore based wholly owned subsidiary, ABJA Investment Co. Pte. Ltd. has issued US$ 500 million 4.85% Unsecured Bonds due 2020 and US$ 1,000 million 5.95% Unsecured Bonds due 2024 which are listed on the Frankfurt Stock Exchange. The issue is guaranteed by the Company.

7. Figures for the quarter ended March 31, 2014 represent the difference between the audited figures in respect of the full financial year and the published figures of nine months ended December 31, 2013 respectively.

8. The consolidated financial results have been subjected to limited review and the stand-alone financial results have been audited by the statutory auditors.

9. Figures for the previous periods have been regrouped and reclassified to conform to the classification of the current period, where necessary.

Tata Steel Limited

Sd/-

Cyrus P Mistry

Mumbai: August 13, 2014 Chairman

This information is provided by RNS

The company news service from the London Stock Exchange

END

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