Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Q1 FY2021 Earnings Presentation
24 slides from Tata Steel's earnings presentation, Aug 13, 2020
Slide 1: Exchange submission cover letter
IT. TATA August 13, 2020 The Secretary, Listing Department The Manager, Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalai Street, G Block, Bandra-Kurla Complex, Bandra Mumbai - 400 001. (E), Maharashtra,
Slide 2: Building bridges to the future: Results Presentation, quarter ended June 30, 2020
Building bridges to the future SINCE 1907 Results Presentation Financial quarter ended June 30, 2020 August 13, August 13, 2020 1
Slide 3: 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 4: Committed towards excellence in Safety, Health & Sustainability
Committed towards excellence in Safety, Health & Sustainability (v) Safety Health Sustainability ▪ Trained >25,000 employees on ▪ Conducted COVID health screening ▪ Signed Memorandum of Understanding Standard Operating Guidelines for covering 54,500 employees and with Shell for identifying opportuni
Slide 5: Supporting our communities during COVID-19 pandemic
Supporting our #Thought for Food communities during ▪ >27 Lacs meals served .7.;.:.... 7.; ; - COVID-19 pandemic ▪ 48,000 ration + hygiene packets distributed #Stitch in Time ▪ >1 Lac masks produced ▪ >Rs.7 Lacs income disbursed amongst 191 households who were engaged in mask making #Cash for Work S
Slide 6: Global macro environment
Global macro environment China – major activity indicators Steel Production, demand and Chinese ▪ Economic activity is gradually recovering, supported by (%YoY change) net exports (mn tons) relaxation in lockdowns and economic stimulus China net exports 100 World ex-China Steel Production 9 30% Chin
Slide 7: Business environment in India and Europe
Business environment in India and Europe India: India key sectors growth* India steel volumes (mn tons) ▪ Apparent steel consumption declined by 55%QoQ and Exports (RHS) Crude Steel Production 56%YoY to 11.14 mn tons in 1QFY21 as economic activities Capital Goods Finished steel demand Infrastructure
Slide 8: Recalibration amid the challenging environment
Recalibration amid the challenging environment Long term funds raised Managing risks at physical assets to shore up liquidity and across the supply chain Aggressive liquidity management Optimized plant operations; curtailed aimed at cash neutral operations utilization levels in April before ramping
Slide 9: Key performance highlights & updates
Key performance highlights & Capacity utilization in India updates ramped up to normalized levels towards end of June 01 Overall India sales volumes in June ‘20 at 115% of FY20 average monthly deliveries 02 Free cashflow generation in the face of COVID-19 disruption 03 Maturity profile extended by r
Slide 10: Consolidated financial performance
Consolidated (All figures are in Rs. Crores unless stated otherwise) 1QFY21 4QFY20 1QFY20 financial Production (mn tons)1 5.14 7.37 7.15 performance Deliveries (mn tons) 4.93 6.50 6.34 Total revenue from operations 24,289 33,770 35,947 Raw material cost2 9,614 13,296 16,127 Change in inventories 786
Slide 11: Consolidated Adjusted EBITDA movement
Consolidated Adjusted ₹ Crores EBITDA1 movement ▪ Selling results reflects 4,869 sequentially declining steel 363 realisation across geographies 1,019 ▪ Impact of cost savings negated by idle/ abnormal cost owing to lower level of capacity utilization across geographies 2 2,451 1,038 ▪ Volume/mix im
Slide 12: Consolidated Debt movement
Consolidated Rs. Crores Debt movement 52 1,985 504 118,870 1,16,328 11,5491 104,779 14,178 104,692 Gross Debt Addition of Loan FX Impact Gross Debt Cash, Bank & Net Debt Mar'20 new leases movement and Others Jun'20 Current Jun'20 Investments Free cashflow Long term funds raised to lengthen maturity
Slide 13: Tata Steel India: Production and delivery volumes
Tata Steel India1: Production and delivery volumes ▪ 1QFY21 sales volumes in India declined by 27%QoQ due to nationwide lockdown amid COVID-19 outbreak; exports were significantly ramped to 1.46 mn tons by tapping new markets and leveraging our supply chain capability ▪ Crude steel production decrea
Slide 14: Tata Steel India – segmental highlights
Tata Steel India1 – segmental highlights Segment-wise deliveries (mn tons) Branded Products & Retail segment: ▪ Retail sales reached 92% in Jun’20 of FY20 average monthly sales with focus on physical & digital channels Q1FY21 0.08 0.56 0.71 0.11 1.47 ▪ Market Sensing: Seizing the right opportunity t
Slide 15: Tata Steel Standalone: Financial performance
Tata Steel (All figures are in Rs. Crores unless stated otherwise) 1QFY21 4QFY20 1QFY20 Standalone: Total revenue from operations 9,339 14,211 16,091 Financial performance Raw material cost1 2,516 4,338 5,272 Change in inventories 45 (980) (544) EBITDA 1,291 3,661 4,098 Adjusted EBITDA2 1,291 3,661
Slide 16: Tata Steel Standalone: EBITDA movement
Tata Steel Standalone: ₹ Crores EBITDA movement ▪ Selling results primarily reflect 3,661 decline in steel realizations due 260 to higher exports 568 ▪ Impact of cost savings negated by idle/ abnormal cost owing to lower level of capacity utilization 1,042 ▪ Volume/mix impact is primarily due to low
Slide 17: Tata Steel Standalone: Key sustainability parameters
Tata Steel Standalone: Key sustainability parameters ▪ Sustainability parameters were impacted during 1QFY21 due to lower than normal capacity utilization levels Coke Rate (kg/tcs) Specific Energy Intensity (Gcal/tcs) Specific Water Consumption (m3/tcs) I Good I Good I Good 434 7.29 1 1 'I 5.63 399
Slide 18: Tata Steel BSL: Consolidated performance
Tata Steel BSL: (All figures are in Rs. Crores unless stated otherwise) 1QFY21 4QFY20 1QFY20 Consolidated Crude Steel production (mn tons) 0.66 1.12 1.12 performance Deliveries (mn tons) 0.70 0.98 0.86 and key updates Total revenue from operations 2,697 4,274 4,333 Raw material cost1 1,336 2,564 2,9
Slide 19: Tata Steel Long Products: Consolidated performance
Tata Steel Long (All figures are in Rs. Crores unless stated otherwise) 1QFY21 4QFY20 1QFY20 Production (‘000 tons) Products: - Crude Steel 121 156 121 Consolidated - Sponge 134 201 172 performance Deliveries (‘000 tons) and key updates - Steel 117 137 93 - Sponge 104 164 135 Total revenue from oper
Slide 20: Tata Steel Europe: performance and key updates
Tata Steel Europe: (All figures are in Rs. Crores unless stated otherwise) 1QFY21 4QFY20 1QFY20 performance Liquid Steel production (mn tons) 2.15 2.64 2.65 and key updates Deliveries (mn tons) 1.98 2.39 2.26 Total revenue from operations 11,225 13,588 14,495 Raw material cost1 5,349 5,890 7,332 Cha
Slide 21: Business Outlook
Business Outlook ▪ Global steel demand to improve gradually as economic activity recovers with relaxation in mobility restrictions and policy stimulus; however, it will remain lower on YoY basis in 2020 Steel ▪ India steel demand is expected to improve further; supported by government spending on in
Slide 22: Annexure – I: Standalone QoQ Variations
Annexure – I: Rs Crores 1QFY21 4QFY20 Key Reasons Standalone QoQ Income from operations 9,146 13,699 Due to lower deliveries, weak realisations including adverse mix Variations Other operating income 193 513 Primarily due to Nil EPCG income In line with lower production level, and lower coal and oth
Slide 23: Annexure – II: Consolidated QoQ Variations
Rs Crores 1QFY21 4QFY20 Key Reasons Annexure – II: Primarily due to lower deliveries, weak realisation including adverse Consolidated Income from operations 23,813 32,867 mix across geographies QoQ Variations Other operating income 476 903 Lower primarily at Standalone and Tata Steel BSL In line wit
Slide 24: Investor relations contact
Investor relations contact Investor enquiries : Sandep Agrawal Tel: +91 22 6665 0530 Email: sandep.agrawal@tatasteel.com TATA STEEL 23