Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Q2 FY2021 Earnings Presentation
23 slides from Tata Steel's earnings presentation, Nov 13, 2020
Slide 1: Results Presentation
Results Presentation Financial quarter and half year ended September 30, 2020 November 13, 2020 1
Slide 2: Safe harbor statement
Safe harbor Statements in this presentation describing the Company’s performance may statement 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. Impo
Slide 3: Committed towards excellence in Safety, Health & Sustainability
Committed towards excellence in Safety, Health & Sustainability Safety Health Sustainability ▪ Trained >43,500 employees on ▪ Conducted >96,500 COVID health ▪ Achieved first time ever (i) <2 m3/tcs Standard Operating Guidelines for screening till date of employees and fresh water consumption at TSJ;
Slide 4: Improving quality of life of our communities
Improving quality of life of our communities Spent >Rs.1,000 crores on CSR (TSL Standalone over last 5 years) Education Health 315 ▪ 30 Model schools: 4 new schools ▪ Maternal and New-born Survival 204 194 232 193 handed over to the Government of Odisha Initiative (MANSI): 22,075 pregnant 132 women,
Slide 5: Global macro environment
Global macro environment Global Manufacturing PMIs China – major activity indicators (%YoYΔ) ▪ Global economic activity recovered on unprecedented 60 30% policy support and eased mobility restrictions; Chinese economic activity indicators remained strong 50 0% 40 -30% Rebar Shipment Cement Shipment
Slide 6: Business environment in India and Europe
Business environment in India and Europe India: India key economic growth indicators* India steel volumes (mn tons) ▪ Recovery in Indian economy gathered pace with Capital Goods Infra./const. goods Consumer Durables Automotive Exports (RHS) Finished steel demand Crude Steel Production 10 1.8 resumpt
Slide 7: Agility in the face of adversity
Recalibration in a post COVID world Engaged with UK and EU Managing risks at physical assets governments to seek support and across the supply chain Using technology to Agility in Indian operations back to drive efficiency the face of pre-COVID level adversity Drive on cost savings and Pivoting busi
Slide 8: Key performance highlights and updates
Key performance highlights and updates Performance Highlights India re-organization Sustainable solution for TSE ▪ Achieved best ever quarterly ▪ Moving ahead with reorganization ▪ In discussions with SSAB, Sweden volumes in India, registering growth to drive scale, synergies and regarding a potenti
Slide 9: Consolidated financial performance
Consolidated (All figures are in Rs. Crores unless stated otherwise) 2QFY21 1QFY21 2QFY20 financial Production (mn tons)1 6.73 5.14 6.95 performance Deliveries (mn tons) 7.40 4.93 6.53 Total revenue from operations 37,154 24,289 34,579 Raw material cost2 12,104 9,614 14,864 Change in inventories 3,2
Slide 10: Consolidated Adjusted EBITDA movement
Consolidated Adjusted ₹ Crores 3,017 ▪ Selling results reflects partial impact EBITDA1 of sequential increase in steel movement 5,425 realisation across the key entities 737 ▪ Cost change reflects benefits of cost efficiency initiatives and impact of idle/ abnormal cost owing to lower level of capac
Slide 11: Investments and debt movement
Consolidated2 Rs. Crores Debt movement 1,985 504 1,18,870 189 1,16,328 52 1,14,319 14,1781 4,522 1,14,537 218 11,549 1 1,04,779 104,692 96,495 17,824 Gross Debt new leases Gross Debt Gross Debt movement movement new leases Investments and Others and Others Net Debt Cash, Bank Addition of Addition of
Slide 12: Tata Steel India: Production and delivery volumes
Tata Steel India1: Production and delivery volumes ▪ Crude steel production rose by 54%QoQ and 2%YoY to 4.59 mn tons with all major sites now operating at close to full capacity utilization and downstream operations back to pre-COVID levels ▪ Achieved highest ever quarterly deliveries of 5.05 mn ton
Slide 13: Tata Steel India – segmental highlights
Tata Steel India1 – segmental highlights ▪ Automotive & special products: launched digital VAVE2 Supplier of choice for platform “e-DRIVE” enabling to engage with automotive automotive steel customers for the workshops virtually – first in India ▪ Branded products and retail: o Aashiyana3 clocked a
Slide 14: Tata Steel Standalone: Financial performance
Tata Steel (All figures are in Rs. Crores unless stated otherwise) 2QFY21 1QFY21 2QFY20 Standalone: Total revenue from operations 16,362 9,339 14,871 Financial performance Raw material cost1 3,957 2,516 5,151 Change in inventories 1,216 45 (366) EBITDA 4,718 1,291 3,546 Adjusted EBITDA2 4,718 1,291
Slide 15: Tata Steel Standalone: EBITDA movement
Tata Steel Standalone: ₹ Crores ▪ Selling results reflect partial impact EBITDA movement of increase in steel prices due to lag 575 4,718 effect 1,448 ▪ Cost change reflects benefits of cost efficiency initiatives and impact of idle/ abnormal cost owing to lower level of capacity utilization in 1QFY
Slide 16: Tata Steel Standalone: Key sustainability parameters
Tata Steel Standalone: Key sustainability parameters Coke Rate (kg/tcs) Specific Energy Intensity (Gcal/tcs) Specific Water Consumption (m3/tcs) Good 434 Good Good 7.29 5.63 399 6.70 393 381 375 6.31 6.27 367 367 6.21 360 353 352 352 348 5.89 5.77 4.75 5.68 5.67 5.67 5.63 5.60 4.39 4.27 4.15 3.90 3.
Slide 17: Tata Steel BSL: Consolidated performance
Tata Steel BSL: (All figures are in Rs. Crores unless stated otherwise) 2QFY21 1QFY21 2QFY20 Consolidated Crude Steel production (mn tons) 1.14 0.66 1.07 performance Deliveries (mn tons) 1.27 0.70 1.04 and key updates Total revenue from operations 5,519 2,697 4,555 Raw material cost1 2,558 1,336 2,7
Slide 18: Tata Steel Long Products: Consolidated performance
Tata Steel Long (All figures are in Rs. Crores unless stated otherwise) 2QFY21 1QFY21 2QFY20 Products: Production (‘000 tons) Consolidated - Crude Steel 168 121 150 performance - Sponge 225 134 170 and key updates Deliveries (‘000 tons) - Steel 184 117 118 - Sponge 192 104 140 Total revenue from ope
Slide 19: Tata Steel Europe: performance and key updates
Tata Steel Europe: (All figures are in Rs. Crores unless stated otherwise) 2QFY21 1QFY21 2QFY20 performance Liquid Steel production (mn tons) 2.15 2.15 2.45 and key updates Deliveries (mn tons) 2.27 1.98 2.29 Total revenue from operations 13,498 11,225 14,035 Raw material cost1 4,931 5,349 6,431 Cha
Slide 20: Business Outlook
Business Outlook ▪ Global steel demand is expected to improve gradually; full year decline in 2020 is expected to be lower than earlier estimates ▪ India steel demand continues to improve; supported by government spending on infrastructure, festive season and higher Steel rural consumption on the ba
Slide 21: Annexure – I: Standalone QoQ variations
Annexure – I: Rs Crores 2QFY21 1QFY21 Key Reasons Standalone QoQ Income from operations 16,110 9,146 Due to higher deliveries, improved realisations with favourable mix variations Other operating income 252 193 Primarily due to higher sale of seconds steel In line with higher production level partia
Slide 22: Annexure – II: Consolidated QoQ variations
Annexure – II: Rs Crores 2QFY21 1QFY21 Key Reasons Consolidated Income from operations 36,476 23,813 Due to higher deliveries, improved realisations with favourable mix across the key entities QoQ variations Other operating income 678 476 Higher primarily at Standalone and Tata Steel BSL In line wit
Slide 23: Investor relations contact
Investor relations contact Investor enquiries : Sandep Agrawal Tel: +91 22 6665 0530 Email: sandep.agrawal@tatasteel.com 23