Tata Steel unit Tata Steel BSL posts strong operational performance
Shares of Tata Steel were up 5% at Rs 936.50 on the BSE in intra-day trade on Thursday after Tata Steel BSL, a subsidiary of the company, reported a strong operational performance for the quarter ended March 2021 (Q4FY21).
The stock of Tata Steel BSL surged 6% to Rs 61.25 in intra-day trade, quoting close to its 52-week high of Rs 62 touched on April 8.
Tata Steel BSL’s consolidated net profit more-than-doubled to Rs 1,913 crore in Q4FY21, against Rs 913 crore in December quarter (Q3FY21). Consolidated revenue from operations jumped 24% to Rs 7,321 crore from Rs 5,881 crore in the previous quarter.
Earnings before interest, taxes, depreciation and amortization (Ebitda) grew 25% at Rs 257 crore on a sequential basis. The beat on Ebitda was driven by higher-than-expected volumes and realisation. Sales volumes rose 4% quarter-on-quarter (QoQ) to 1.19 mt.
The realization increased by Rs 10,182/t (20%) QoQ to Rs 61,367/t. The same was higher by Rs 2,727/t (around 5%) versus our estimate due to better product mix and higher other operating income (up Rs 1,300/t QoQ). As a result, EBITDA/t stood at Rs 21,510/t, up 52% QoQ and 15% higher than our estimate (Rs 18,678).
Tata Steel BSL is promoted by Tata Steel, holding 72.65 per cent shares of the company through its wholly-owned subsidiary Bamnipal Steel Limited. Tata Steel is among the leading companies of the conglomerate – Tata Group.
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