Mumbai, February 06, 2023 
Highlights:
▪ Consolidated Revenues in the first nine months of the financial year were up 3% YoY to Rs 1,80,391 crores despite volatile operating environment across geographies. Consolidated EBITDA stood at Rs 25,472 crores, with an EBITDA margin of ~14%. Consolidated Profit after Tax stood at Rs 6,509 crores.
▪ During the quarter, Consolidated Revenues stood at Rs 57,084 crores and EBITDA was Rs 4,154 crores, with an EBITDA margin of ~7%. Profitability was affected by sharp drop in realisations and spreads in Europe.
▪ The company spent Rs 3,632 crores on capex during the quarter. At Kalinganagar, phased commissioning of 6MTPA pellet plant has begun. Work on 2.2 MTPA Cold Roll Mill complex and 5 MTPA expansion is ongoing.
▪ In Punjab, work has commenced on enabling activities with respect to 0.75 MTPA Electric Arc Furnace, which is an important milestone in our journey to reduce emissions.
▪ Net debt stood at Rs.71,706 crores, with Net Debt to EBITDA at 1.76x and Net Debt to Equity at 0.65x.
▪ The British Steel Pension Scheme (BSPS) with Tata Steel UK as Sponsor has completed a substantial part of its de–risking journey with ~60% of its liabilities insured. The buy–in transaction along with actuarial movements has resulted in a non–cash deferred tax expense of Rs 1,783 crores and increased the overall deferred tax expense for the quarter to Rs 2,150 crores.
▪ India1 deliveries stood at 4.74 million tons and were up 7% YoY primarily driven by 11% growth in domestic deliveries, which has also enabled an improvement in product mix.
▪ Neelachal Ispat Nigam Limited (NINL) has begun operations and is being ramped to rated capacity of around 1MTPA. Tata Tiscon rebars are being made from NINL billets
Management Comments:
Mr. T V Narendran, Chief Executive Officer & Managing Director:
“Tata Steel has delivered steady growth in India volumes despite the volatile operating environment. Domestic deliveries stood at around 13.7 million tons in the first nine months of the financial year and were up 4% YoY. Broadbased growth was witnessed across most segments. For the quarter, domestic deliveries were up 11% YoY and grew at a faster pace than India apparent steel consumption aiding in retaining market leadership position across chosen segments. Our crude steel production touched 5 million tons in 3QFY23 for the first time in India, with Neelachal Ispat Nigam limited commencing operations. We are presently expanding our capacities across multiple sites at Tata Steel Kalinganagar, Neelachal Ispat Nigam Limited and the Electric Arc Furnace at Ludhiana in Punjab and at our downstream plants across India. Moving to Europe, our deliveries were lower in 9MFY23 due to slowdown
in demand. Recession concerns weighed on steel prices, which coupled with elevated energy costs affected our performance. Looking ahead, there is visible pick up in steel prices across key regions on improved China demand outlook and sustained spending on infrastructure in India. We continue to progress on our sustainability journey to achieve net zero by 2045 through multiple pathways. Finally, I am happy to share that World Economic Forum has recognised Tata Steel as Global Diversity Equity & Inclusion Lighthouse and we have also been awarded Great Place to Work certification for the sixth time in a row.”
Mr. Koushik Chatterjee, Executive Director & Chief Financial Officer:
“Global steel prices have witnessed steady moderation amidst inflationary pressures and concerns about economic slowdown in the first nine months of the financial year. Despite this, our consolidated revenues were up 3% YoY to Rs 1,80,391 crores and EBITDA stood at Rs 25,472 crores, which translates to an EBITDA margin of 14%.Standalone EBITDA margin was higher at 21%. During the quarter, Consolidated revenues stood at Rs 57,084 crores and EBITDA was Rs 4,154 crores. In India, steel prices were subdued even as raw material costs moved lower.
While this increased margins at standalone operations from around 16% in 2Q to ~18% in 3Q, European operations witnessed margin compression due to lower realisations and elevated input costs. Free cash flow generated for the quarter stood at Rs 1,588 crores largely due to favourable movement in working capital. We continue to invest in capacity growth in India, taking our capital expenditure to Rs 3,632 crores for the quarter and Rs 9,746 crores for the year to date. Our net debt has remained broadly stable on QoQ basis at Rs 71,706 crores and our liquidity position remains strong. We made further progress on derisking the British Steel Pension Scheme (BSPS) by expanding our insurance coverage on liabilities from 30% to 60%. Depending on market conditions, the residual insurance of 40% of liabilities will be completed in the first half of the calendar year 2023 and there will be a commensurate non–cash deferred tax expense. We continue to remain focused on cost optimisation, operational improvements and working capital management to maximise cashflows and are making progress on proposed
merger of seven listed and unlisted entities.
