Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Q2 FY2010 Earnings Presentation
13 slides from Tata Steel's earnings presentation, Oct 27, 2009
Slide 1: Standalone Financial Performance, Quarter Ended September 30, 2009
Tata ata Stee Steel Ltd. td Standalone Financial Performance Quarter Ended September 30, 2009 Press Meet – Mumbai October 27 , 2009 1
Slide 2: Sector Outlook
Sector Outlook India demonstrates comparatively stronger all round growth , posts 6 6.1% 1% GDP growth in Q1 FY’10 Significant increase in government spending, to result in sustained increase in infrastructure growth Index of Industrial Production shows robust growth of 10.4% y-o-y in August
Slide 3: The "New Normal": Opportunities emerging from the crisis
The “New Normal”: Opportunities pp emerging g g from the crisis ¾ Global recovery has begun but will take time Global GDP Stabilizes to reach 2007 levels again ¾ Recovery began earlier than expected, but robustness and resilience still suspect ¾ A “New Normal” – Geographical redistribution towards d
Slide 4: China & India: Drivers of global demand recovery
China & India : Drivers of g global demand recovery ¾ Total Capacity – China’s share to rise to 46% in 2010 from 14% in 2000 ¾ India’s share may increase to 5.2% in 2010 from 4 6% iin ’01 4.6% ’01-08 08 – from f 5th to t 3rd in i th the world ld Crude Steel nameplate capacity utilization Percent ¾ W
Slide 5: Key Highlights
Key Highlights Production ( Mn tonnes)) 1.64 1.50 1.54 1.52 1.36 1.33 C d St Crude Steell S l bl St Saleable Steell Q2 FY'09 Q1 FY'10 Q2 FY'10 8,000 2.5 4,000 60% Sales & Turnover EBITDA & EBITDA Margin 7,000 3,421 6,813 5,692 2.0 3,500 50% 6,000 5,616 50% 3,000 5,000 1.42 1.46 1.5 1,998 40% 1.22 2,
Slide 6: Steel Division
Steel Division Flat Products Long Products 35,000 1,082 1,200 30,000 25,749 27,900 26,229 800 29,565 30 000 30,000 , 31,333 698 700 1,000 25,000 663 26,778 848 570 600 25,000 793 800 20,000 500 20,000 600 15,000 400 15,000 300 400 10,000 10,000 200 200 5,000 5,000 100 ‐ ‐ ‐ ‐ Q4 FY FY'09 09 Q1 FY FY
Slide 7: Ferro Alloys & Minerals Division
Ferro Alloys & Minerals Division 1,00,000 100 Operating Profit (Rs Crs) Net Realisation (Rs/t) 80 000 80,000 80 73 60,000 56 60 39,257 50,278 46,514 40,000 40 20,000 17 20 ‐ ‐ Q4 FY'09 Q1 FY'10 Q2 FY'10 7
Slide 8: Financial Performance
Financial Performance Rs Crs Q2 FY’10 Q1 FY’10 Q2 FY’09 Deliveries (mt ) 1.46 1.42 1.22 Turnover 5,692 5,616 6,813 EBITDA 1,998 1,789 3,421 EBITDA margin i (%) 35 32 50 Net Finance Charges 392 342 255 PBT 1,350 , 1,193 , 2,572 , PAT 903 790 1,788 8
Slide 9: Financial Ratios – TSL India
Financial Ratios – TSL India Net Debt / Equity Interest Cover 0.78 4.49 4.44 0 75 0.75 0 76 0.76 4.03 Q4 FY'09 Q1 FY'10 Q2 FY'10 Q4 FY'09 Q1 FY'10 Q2 FY'10 9
Slide 10: Net Debt movement – TSL India
Net Debt movement – TSL India Rs Crs 5,613 ( 2,124) (89) (940) ( 5,170) , ) 26,946 24,236 Gross Debt G D bt New N Loans L Repayments R t Exchange E h Cash C h and d Currentt C N t Debt Net D bt as as on Mar'09 (Gain) / Loss Bank Investments on Sep'09 * Net Debt excludes amount receivable against for
Slide 11: Capital Initiatives
Capital Initiatives 1) Issue of Non Convertible Debentures – Rs 2,151 Crs 2) New Term Loan taken from : Raising of • SBI – Rs R 22,000 000 Crs C • HDFC – Rs 650 Crs Finances • IDFC – Rs 199 Crs 3) Issue of Commercial Papers – Rs 500 Crs 4) GDR Issuance of USD 500 Mn in Q2 FY’10 1) Repayment of Term
Slide 12: Cash & Cash Equivalents – TSL India
Cash & Cash Equivalents – TSL India Rs Crs 7,320 6,110 4,860 Mar'09 Jun'09 Sep'09 12
Slide 13: Thank You
qp TATA TATA STEEL Thank You 13