Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Q1 FY2024 Earnings Presentation
38 slides from Tata Steel's earnings presentation, Jul 24, 2023
Slide 1: Tata Steel Results Presentation, quarter ended June 30, 2023
Preferred option Annual Tata Steel General Results Presentation Meeting 2023 Fourth quarter and Financial year Ended March 31, 2023 Presentation to shareholders Tata Steel Results Presentation Financial quarter ended June 30, 2023 July 24, 2023 Steel - Born of Fire, the equation is visually represen
Slide 2: Safe harbour statement
Safe harbour statement Statements in this presentation describing the Company’s performance may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred or implied. Imp
Slide 3: Business Update
Business Update Water harvesting, India
Slide 4: Focused on creating sustainable value
Focused on creating sustainable value Leadership Consolidate Become future in India position as ready global cost leader Leadership position in Leadership in technology Robust financial Sustainability & digital health 4
Slide 5: Focus on 'Zero harm'
Focus on ‘Zero harm’ Committed towards excellence in Safety & Health of employees1 Safety remains a top priority 67% Fatalities 7 LTIFR* 5 In the last 15 years 4 4 1 FY20 FY21 FY22 FY23 1QFY24 Integrated Exposition Command on Human Center – Machine interface Integrated Focus Command on health Center
Slide 6: Improving quality of life of our communities
Improving quality of life of our communities Social capital and scalable change models to enable deep societal impact Rural & Urban Education Household Health & Nutrition 11.2 Lakh+ Lives Impacted1 Tribal Cultural Grassroots Rural >Rs 1,700 crores Heritage Governance spent2 since FY19 Women & Youth
Slide 7: Pursuing sustainability through multiple pathways
Net Zero by 2045 Pursuing sustainability through multiple pathways Multilocation New EAF Lower smelting Alumina in technology Iron ore Progress on Higher Hydrogen Renewable usage energy use Cleaner fuel i.e., Natural Upscaling gas etc. CCU pilots Initiatives Reducing Partnering with ash in Co
Slide 8: Progressing on decarbonisation journey in Netherlands
Progressing on decarbonisation journey in Netherlands Committed to achieve 35 – 40% CO2 emission reduction by 2030 Programs underway to remain Roadmap+ (2019 – 2025) Transition to Green steel amongst most cost competitive sites in EU while becoming ▪ Investment across installations to ▪ Discussions
Slide 9: Demonstrating transparency through enhanced sustainability disclosures
Demonstrating transparency through enhanced sustainability disclosures Actively involved in development of global & national standards Adopted and reporting 1st Sustainability report published 2001 based on GRI framework Contribution to UN SDGs 1st CDP Climate reporting, expanded 2006 Sustainability
Slide 10: Business Responsibility and Sustainability report
Business Responsibility and Sustainability report Providing comprehensive non-financial inputs Key highlights ▪ Consolidated report covering 14 major entities of Tata Steel Group ▪ Best – in – Class disclosure going beyond mandated requirements 18.9% Workforce 75 Affirmative 23% of capex for environ
Slide 11: Tata Steel is scaling up to capitalise on India growth opportunity
Tata Steel is scaling up to capitalise on India growth opportunity Investments set to drive sector leading returns 2x capacity growth 50% 62% >75% in India by 2030 India Europe Dominant manufacturing base 2017 2023 2030 Flats Flats ~16 MTPA 2023 ~27 MTPA 2030 40 NINL / EAF Longs Longs ~5 MTPA ~13 MT
Slide 12: 5 MTPA expansion progressing at Kalinganagar
5 MTPA expansion progressing at Kalinganagar Value added product mix to enable future ready portfolio The largest ‘Blast furnace’ in India 5,870 cubic metres Future ready portfolio High Tensile steel to meet Advanced steel to serve lightweighting & safety Infra and Energy needs segments ▪ Top combus
Slide 13: 5 MTPA expansion progressing at Kalinganagar: CRM complex and pellet plant
5 MTPA expansion progressing at Kalinganagar 2.2 MTPA CRM complex to drive product mix and Pellet plant to drive savings ▪ Volumes to consolidate leadership position in chosen segments & drive benefits of scale ▪ 2.2 MTPA CRM complex to further the product portfolio, CAL & CGL lines work underway ▪
Slide 14: Retail: Capacity investments to drive high margin business
Retail: Capacity investments to drive high margin business Well placed to leverage pan India growth ▪ Poised to double presence in retail segment driven by o Capacity growth - NINL ramped o Serving Individual Homebuilders up well & EAF work underway via Superbrand ‘Tata Tiscon’ 500K+ 186kt Consumers
Slide 15: Downstream: Value added growth for product mix enrichment
Downstream: Value added growth for product mix enrichment Tubes, Wires, Tinplate and Ductile Iron Pipe Tubes Wires Tinplate Ductile Iron Pipes Wide product Our LRPC strands Application in Tata Ductura, portfolio incl. HAR & are widely used in growing packaging designed to last transportation of Appl
Slide 16: Value accretive consolidation with multiple benefits
Value accretive consolidation with multiple benefits Unlisted Listed Tata Steel S&T Mining Indian Steel & TSLP TCIL Tata Metalliks TRF Ltd. Mining (TSML) Wire Products Swap ratio 6.7 Swap ratio 3.3 Swap ratio 7.9 Swap ratio 1.7 Filing of scheme Filing of 1st Shareholders Final order of with Stock mo
Slide 17: Performance update
Performance update Solar panels at Tata Steel Kalinganagar
Slide 18: Slowdown in global economy has weighed on steel prices and spot spreads
Slowdown in global economy has weighed on steel prices and spot spreads across regions ▪ Global steel prices moderated in the May – June period on ▪ Raw material prices also moved lower during this period. sustained concerns about global recovery, esp. relating to Coking coal prices declined >25% to
Slide 19: India steel demand continued to grow; European steel demand weighed down
India steel demand continued to grow; European steel demand weighed down by economic slowdown India Europe ▪ Indian apparent steel consumption was up around 10% on ▪ Eurozone manufacturing PMI was at 43 in June, indicating YoY basis in 1QFY24 the persistent concerns about economic activity ▪ Infrast
Slide 20: Steady increase in India sales to chosen segments
Steady increase in India sales to chosen segments Domestic deliveries up >20% YoY on improving demand Business Verticals End use sectors Auto and Retail : Individual mn tons ancillaries housebuilders Packaging 1.0 1.1 1.1 0.8 0.8 0.6 0.1 0.1 0.1 5.15 1QFY23 4QFY23 1QFY24 1QFY234QFY231QFY24 1QFY23 4Q
Slide 21: Focused on staying cost competitive through business cycles
Focused on staying cost competitive through business cycles Cost improvement initiatives to optimise cash flows 5-year cost savings at Tata Steel India1 In Rs crores 6,545 6,309 5,369 5,463 Scaling up Iron ore mining capacity 6 MTPA pellet plant commissioned at in India Tata Steel Kalinganagar 3,556
Slide 22: Tata Steel Consolidated
Tata Steel Consolidated (All figures are in Rs. Crores Key drivers for QoQ change: 1QFY24 4QFY23 1QFY23 unless stated otherwise) Production (mn tons)1 7.13 7.80 7.74 ▪ Revenues: decreased by 6% due to lower volumes, Deliveries (mn tons) partly offset by higher realisations across geographies 7.20 7.
Slide 23: Consolidated 1QFY24 EBITDA stood at Rs 6,238 crores
Consolidated 1QFY24 EBITDA1 stood at Rs 6,238 crores EBITDA margin was broadly stable at 10% in Rs crores ▪ Selling Result: driven by higher realisations in India and Europe 1,116 2,398 2,543 ▪ Cost Changes: due to increase in raw material costs especially coking coal 274 ▪ Volume/Mix: primarily dri
Slide 24: Net debt stood at Rs 71,397 crores
Net debt stood at Rs 71,397 crores Group liquidity remains strong at Rs 30,5691 crores in Rs crores 5,336 145 66 90,440 84,893 19,043 71,397 Gross Debt Addition of Loan FX Impact Gross Debt Cash, Bank & Net Debt Mar'23 new leases movement and Others Jun'23 Current Jun'23 Investments 1 Note Group liq
Slide 25: Key financial credit metrics
Key financial credit metrices EBITDA Margin (%)1 EBITDA / ton (Rs.)1 Interest Coverage Ratio (x)1,2 Gross & Net Debt (Rs. crore) 26.2% 21,626 11.7 1,16,328 1,00,816 19.8% 88,501 90,440 18.9% 84,893 1,04,779 75,561 94,879 11,358 11,110 5.2 8,503 75,389 12.2% 13.4% 10,838 3.9 4.1 67,810 71,397 6,267 3
Slide 26: Annexures
Annexures Road made of Steel slag, India
Slide 27: Tata Steel Standalone: operational efficiencies and environmental impact
Tata Steel Standalone Continued focus on operational efficiencies and minimizing environmental impact Coke Rate (kg/thm) Specific Energy Consumption (Gcal/tcs) Specific Fresh Specific Water Fresh Consumption (m3/tcs) Water Good Good 3 Consumption (m /tcs) Good 3.10 5.80 5.79 5.78 356 355 5.67 353 5.
Slide 28: Tata Steel Standalone
Tata Steel Standalone (All figures are in Rs. Crores Key drivers for QoQ change: 1QFY24 4QFY23 1QFY23 unless stated otherwise) Production (mn tons) 4.65 4.82 4.73 ▪ Revenues: decreased on lower volumes, partly offset Deliveries (mn tons) by higher net realisations 4.62 4.98 3.89 Total revenue from o
Slide 29: Key operating parameters: TSUK and TSN
TSUK TSN Key operating parameters Coke Rate (kg/thm) Specific Energy Consumption (GJ/tcs) CO2 Emission Intensity (tCO2/tcs) Good Good Good 337 331 324 317 23.9 311 23.3 23.1 22.8 22.6 2.25 22.1 2.18 2.16 300 2.14 297 2.08 20.4 20.2 2.02 19.8 19.5 291 1.78 1.77 1.76 1.76 279 275 FY20 FY21 FY22 FY23 1
Slide 30: Tata Steel Europe
Tata Steel Europe (All figures are in Rs. Crores Key drivers for QoQ change: 1QFY24 4QFY23 1QFY23 unless stated otherwise) ▪ Revenues: were lower on reduction in volumes, this Liquid Steel production (mn tons) 1.79 2.27 2.44 was partly offset by increase in realisations Deliveries (mn tons) 1.99 2.1
Slide 31: Tata Steel Long Products: Key operating parameters
Tata Steel Long Products Key operating parameters Coke rate (kg/thm) PCI rate (kg/thm) Carbon Emission (tCO2/tcs) Good Good Good 4.4 4.3 4.3 128 4.0 120 116 114 503 503 500 474 FY21 FY22 FY23 FY21 FY22 FY23 FY21 FY22 FY23 1QFY24 1QFY24 1QFY24 Power consumption (kVAh/tcs) Electrode consumption (kg/tc
Slide 32: Tata Steel Long Products (Consolidated with NINL)
Tata Steel Long Products (Consolidated with NINL) (All figures are in Rs. Crores Key drivers for QoQ change: 1QFY241 4QFY231 1QFY23 unless stated otherwise) ▪ Revenues: increased driven by ramp up at NINL, which Total revenue from operations 3,568 3,016 1,994 is presently operating at run rate of ar
Slide 33: Tinplate Company of India: Key operating parameters
Tinplate Company of India Limited Key operating parameters CO2 Emission Intensity (tCO2/tFP) Fresh Water Consumption (m3/tFP) Good Good 13.7 13.0 0.71 12.4 12.2 11.6 0.67 0.66 0.65 0.62 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 1QFY24 1QFY24 Power consumption (kWh/tFP) CRM Material Yield (%) Good Good
Slide 34: Tinplate Company of India Limited
Tinplate Company of India Limited (All figures are in Rs. Crores Key drivers for QoQ change: 1QFY24 4QFY23 1QFY23 unless stated otherwise) ▪ Revenues: decreased primarily due to lower sales Total revenue from operations 914 1,033 1,007 volumes on QoQ basis Raw material cost1 708 672 884 ▪ Raw Materi
Slide 35: Tata Metaliks: Key operating parameters
Tata Metaliks Key operating parameters Carbon Emission (tCO2/thm) Energy Consumption Intensity (GJ/thm) Pig Iron business Good Good 18.7 1.87 18.5 1.83 1.78 1.75 18.0 17.8 1.73 17.8 FY20 FY21 FY22 FY23 FY20 FY21 FY22 FY23 1QFY24 1QFY24 Ductile Iron Pipe business Carbon Emission (tCO2/tFP) Energy Con
Slide 36: Tata Metaliks Limited
Tata Metaliks Limited (All figures are in Rs. Crores Key drivers for QoQ change: 1QFY24 4QFY23 1QFY23 unless stated otherwise) ▪ Revenues: decreased mainly on account of lower Total revenue from operations 654 930 669 deliveries. DIP4 share of total revenues increased QoQ Raw material cost1 396 574
Slide 37: Tata Steel Thailand
Tata Steel Thailand (All figures are in Rs. Crores Key drivers for QoQ change: 1QFY24 4QFY23 1QFY23 unless stated otherwise) ▪ Deliveries: were lower on QoQ basis inline with Saleable Steel production (mn tons) 0.26 0.31 0.31 production Deliveries (mn tons) 0.27 0.31 0.31 ▪ Revenues: decreased on lo
Slide 38: Investor Relations Contact
Investor Relations Contact Investor enquiries Hriday Nair hnair@tatasteel.com Pavan Kumar pavan.kumar@tatasteel.com