Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Q1 FY2025 Earnings Presentation
36 slides from Tata Steel's earnings presentation, Jul 31, 2024
Slide 1: Tata Steel Results Presentation
Tata Steel Results Presentation Celebrating Kaamya Karthikeyan, Supported by Tata Steel Adventure Foundation, Kaamya became youngest to climb Mt Everest from Nepal side Financial quarter ended 30th June 2024 July 31, 2024
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: We are committed to 'Zero Harm'
We are committed to ‘Zero Harm’ Journey towards excellence in Safety & Health of employees1 Contractor Safety Process Safety Road & Railway Safety Occupational Health Deployment of Management Developed CoE to deploy Anti-tilt mechanism (leveraging ‘Wellspring’, app to aid Standard for high-risk jobs
Slide 4: 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 Public Health & Nutrition Grassroots Sports Structured learning for 1,400 high risk pregnant women 7,400+ children and youth engaged in 7.4 lakh+ children pre
Slide 5: Strategic Update
Strategic Update Kailash Top, Gamharia, Jamshedpur - a 30-acre ash mound transformed into a vibrant biodiversity park with 25,000 plants and shrubs
Slide 6: Tata Steel is focused on creating sustainable value
Tata Steel is focused on creating sustainable value Leadership in Consolidate Leadership in Leadership in Robust Become technology and position as global Sustainability India financial health future ready digital cost leader 6
Slide 7: Sustainability is at the core of our strategy
Leadership in Leadership in Leadership in Consolidate position as Robust financial Become Sustainability India Technology and Digital Global cost leader health future ready Sustainability is at the core of our strategy Route and pace of decarbonisation being calibrated across geographies Net Zero em
Slide 8: India: Pursuing multiple initiatives and committed to responsible growth
Leadership in Leadership in Leadership in Consolidate position as Robust financial Become Sustainability India Technology and Digital Global cost leader health future ready India : Pursuing multiple initiatives and committed to responsible growth India’s 1st carbon bank initiative to further carbon
Slide 9: UK: Pursuing decarbonisation to reduce 50 mn tons CO2e over a decade
Leadership in Leadership in Leadership in Consolidate position as Robust financial Become Sustainability India Technology and Digital Global cost leader health future ready UK: Pursuing decarbonisation to reduce 50 mn tons CO2e over a decade Restructuring of existing operations on course March 04th
Slide 10: Netherlands: Committed to achieve 35–40% CO2e reduction by 2030
Leadership in Leadership in Leadership in Consolidate position as Robust financial Become Sustainability India Technology and Digital Global cost leader health future ready Netherlands: Committed to achieve 35 – 40% CO2e reduction by 2030 Commenced discussions with Dutch government wrt ▪ Roadmap plu
Slide 11: Demonstrating transparency through sustainability disclosures
Leadership in Leadership in Leadership in Consolidate position as Robust financial Become Sustainability India Technology and Digital Global cost leader health future ready Demonstrating transparency through sustainability disclosures 68 targets have been prioritised across 15 relevant Tata Steel’s
Slide 12: India steel remains a bright spot aided by the economic growth cycle
Leadership in Leadership in Leadership in Consolidate position as Robust financial Become Sustainability India Technology and Digital Global cost leader health future ready India steel remains a bright spot aided by the economic growth cycle India steel demand forecast (in mn tons) Key trends ~200 1
Slide 13: Tata Steel is scaling up in India to capitalise on growth opportunity
Leadership in Leadership in Leadership in Consolidate position as Robust financial Become Sustainability India Technology and Digital Global cost leader health future ready Tata Steel is scaling up in India to capitalise on growth opportunity Investments set to drive sector leading returns 2x Flats
Slide 14: Phased commissioning of 5 MTPA expansion at Kalinganagar
Leadership in Leadership in Leadership in Consolidate position as Robust financial Become Sustainability India Technology and Digital Global cost leader health future ready Phased commissioning of 5 MTPA expansion at Kalinganagar The largest Blast furnace in India at 5,870 cubic metres Equipment tri
Slide 15: Embracing Digital and Technology to create and unlock value
Leadership in Leadership in Leadership in Consolidate position as Robust financial Become Sustainability India Technology and Digital Global cost leader health future ready Embracing Digital and Technology to create and unlock value Remote Operations Centre (iROC) World’s 1st successful trial of rec
Slide 16: Focus on consolidating position as a global cost leader
Leadership in Leadership in Leadership in Consolidate position as Robust financial Become Sustainability India Technology and Digital Global cost leader health future ready Focus on consolidating position as a global cost leader ~6 MTPA pellet plant at Kalinganagar Focus on raw material security Sca
Slide 17: Financial Management to enable returns across cycle
Leadership in Leadership in Leadership in Consolidate position as Robust financial Become Sustainability India Technology and Digital Global cost leader health future ready Financial Management to enable returns across cycle Total Shareholder Returns1 (%) Balance sheet management Tata Steel Nifty 50
Slide 18: Becoming culturally future ready
Leadership in Leadership in Leadership in Consolidate position as Robust financial Become Sustainability India Technology and Digital Global cost leader health future ready Becoming culturally future ready 100 tonne dumper at Noamundi mines, India Initiatives to reach new level of excellence Talent
Slide 19: Business Update
Business Update HIsarna, a promising steelmaking technology with the potential of at least 20% reduction in CO2 emissions and energy consumption
Slide 20: Subdued demand in most regions weighed on steel prices and spreads
Subdued demand in most regions weighed on steel prices and spreads ▪ Global steel prices moderated in Apr – Jun’24 period across ▪ Raw material prices were rangebound during the quarter. key regions. US and EU steel prices were down between 8 Coking coal was mostly between $250 - $260 per ton while
Slide 21: India steel demand remained steady while EU demand was subdued
India steel demand remained steady while EU demand was subdued India Europe ▪ Indian apparent steel demand remained broadly steady ▪ EU steel demand was subdued, with construction and despite some impact due to elections and heat waves machinery being adversely impacted by high interest rates ▪ Stee
Slide 22: In 1QFY25, India sales were driven by 4% YoY rise in domestic deliveries
In 1QFY25, India sales were driven by 4% YoY rise in domestic deliveries deliveries grew Verticals Business by 5% YoY to ~19.9 mn tons End use sectors Automotive BPR IPP Transfers Exports Auto and Retail : Individual Construction & ancillaries housebuilders Infrastructure mn tons 5.4 1.3 1.2 1.3 1.1
Slide 23: Auto: Consolidating the position of 'Preferred Steel Supplier'
Auto: Consolidating the position of “Preferred Steel Supplier” ▪ Strong presence across all the ▪ Enriched product offerings with automotive OEMs hi-end grades from new facilities Auto1 as % of total deliveries Steady growth in high end auto sales 22% 1QFY24 4QFY24 1QFY25 ▪ Value creation for custom
Slide 24: Poised to grow 2x in Retail and shaping construction market practices
Poised to grow 2x in Retail and shaping construction market practices Envisaged capacity growth to aid volumes leveraging Ready-to-use solutions and 30+ service centres pan India to simplify branded presence in high margin business customer’s journey 1QFY24 1QFY25 Tiscon Retail Sales Enhancing footp
Slide 25: Focus on attaining leadership in emerging and growing segments
Focus on attaining leadership in emerging and growing segments Engineering Goods Energy Consumer Durables and Packaging Includes Railways and Includes Oil & Gas, Wind and Includes Tinplate, LPG and Capital Goods etc. Solar etc. Appliances etc. ▪ Steady supplies during the quarter ▪ Market leadership
Slide 26: Tata Steel Consolidated
Tata Steel Consolidated (All figures are in Rs. Crores Key drivers for QoQ change: 1QFY25 4QFY24 1QFY24 unless stated otherwise) Production (mn tons)1 8.00 7.92 7.13 ▪ Revenues: decreased by 7% primarily due to lower Deliveries (mn tons) volumes across geographies 7.39 7.98 7.20 Total revenue from o
Slide 27: Consolidated 1QFY25 EBITDA stood at Rs 6,950 crores
Consolidated 1QFY25 EBITDA1 stood at Rs 6,950 crores 429 109 555 ▪ Selling Result: driven by slightly higher 215 - realisations in India partly offset by drop in UK ▪ Cost Changes: were primarily driven by higher raw material costs at Netherlands operations 6,969 6,950 ▪ Volume/Mix: primarily driven
Slide 28: Net debt stood at Rs 82,162 crores
Net debt stood at Rs 82,162 crores in Rs crores 6 5,787 92,961 10,799 86 87,082 82,162 Results Presentation, July 2024 Gross Debt Movement in Loan FX Impact Gross Debt Cash, Bank & Net Debt Mar'24 leases movement and Others Jun'24 Current Jun'24 Investments 28
Slide 29: 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 crores) 26.2% 21,626 11.7 1,16,328 88,501 92,961 19.8% 84,893 87,082 1,04,779 75,561 11,358 9,234 5.2 75,389 77,550 82,162 12.2% 13.4% 12.5% 10,838 7,962 4.1 67,810 6,267 3.1 3.2
Slide 30: Annexures
Annexures Rooftop solar installation at Hot Strip Mill, Jamshedpur plant
Slide 31: Tata Steel Standalone
Tata Steel Standalone Coke Rate (kg/thm) Specific Energy Consumption (Gcal/tcs) Specific Fresh Water Consumption (m3/tcs) Good Good Good 5.95 365 5.85 5.68 5.63 357 3.20 348 4.91 345 339 2.84 2.74 2.65 2.44 FY21 FY22 FY23 FY24 1QFY25 FY21 FY22 FY23 FY24 1QFY25 FY21 FY22 FY23 FY24 1QFY25 CO2 Emission
Slide 32: Tata Steel Standalone
Tata Steel Standalone1 (All figures are in Rs. Crores Key drivers for QoQ change: 1QFY25 4QFY24 1QFY24 unless stated otherwise) Production (mn tons) 5.01 5.24 4.84 ▪ Revenues: decreased by 10%, broadly driven by lower Deliveries (mn tons) 4.94 5.42 4.79 volumes on QoQ basis Total revenue from operat
Slide 33: TSUK and TSN key operating parameters
TSUK TSUK TSN Key operating parameters Coke Rate (kg/thm) Specific Energy Consumption (GJ/tcs) CO2 Emission Intensity (tCO2/tcs) Good Good Good 362 24.2 23.3 23.1 23.1 22.8 2.27 340 337 2.18 2.16 2.15 2.14 20.9 20.4 20.2 324 19.5 18.3 1.81 311 1.78 1.77 1.76 1.70 300 298 291 289 279 FY21 FY22 FY23 F
Slide 34: Tata Steel Netherlands
Tata Steel Netherlands (All figures are in Rs. Crores Key drivers for QoQ change: 1QFY25 4QFY24 1QFY24 unless stated otherwise) ▪ Deliveries: moved higher by 3% on higher production Liquid Steel production (mn tons) 1.69 1.48 0.94 enabled by completion of reline of BF6 in early February Deliveries (
Slide 35: Tata Steel UK
Tata Steel UK (All figures are in Rs. Crores Key drivers for QoQ change: 1QFY25 4QFY24 1QFY24 unless stated otherwise) ▪ Deliveries: were broadly stable in line with production. Liquid Steel production (mn tons) 0.68 0.66 0.85 BF #5 was shut down in early July Deliveries (mn tons) 0.68 0.69 0.75 ▪ R
Slide 36: Tata Steel Investor Relations
Tata Steel Investor Relations Investor enquiries ir@tatasteel.com