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17 December 2017

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Tata Steel Ltd (Steel - Large)

Last Price 694.70
Net Changes 8.95
Volume 3158329
Prev Close 685.75
694.70 8.95 (1.31%)
Date: Dec 15,2017 EOD




Index Details Steel - Large


Chart

Stock Price Details

Market Statistics

Open Price 692.2 Div Yield (%) 1.44
Buy (Size) 0.00(×0) Eps(Rs) 53.02
Sell (Size) 0.00(×0) Book Value(Rs) 514.8430586
Buy Quantity 0 Market Cap(Rs.Cr) 67494.65
Sell Quantity 0 Face Value(Rs) 10
Today's High 699.7 Market Lot 1
Today's Low 692 AGM Date Aug
52-Week High 734.9 Book Closure Date Jul/Aug
52-Week Low 377.45 ISIN No. INE081A01012

Share Holding Pattern

  No Of shares % Share Holding
Total Foreign (Promoter & Group) 0 0.00
Indian (Promoter & Group) 304502341 31.35
Total of Promoter 304502341 31.35
Non Promoter (Institution) 440948923 45.40
Non Promoter (Non-Institution) 225764625 23.25
Total Non Promoter 666713548 68.65
Total Promoter & Non Promoter 971215889 100.00
Custodians(Against Depository Receipts) 0 0.00
Grand Total 971215889 100.00

Company News

15-Dec-2017  Tata Steel declare Quarterly Result
Tata Steel declare Quarterly Result

Tata Steel will hold a meeting of the Board of Directors of the Company on 19 December 2017.
14-Dec-2017  Tata Steel slips on fund raising plan
Tata Steel slips on fund raising plan

The announcement was made after market hours yesterday, 13 December 2017.

Meanwhile, the S&P BSE Sensex was down 69.45 points or 0.21% at 32,983.59.

On the BSE, 1.07 lakh shares were traded on the counter so far as against the average daily volumes of 3.42 lakh shares in the past one quarter. The stock had hit a high of Rs 686.50 and a low of Rs 671.05 so far during the day. The stock had hit a 52-week high of Rs 734.90 on 30 October 2017 and a 52-week low of Rs 377.45 on 27 December 2016.

The stock had underperformed the market over the past one month till 13 December 2017, sliding 1.27% compared with 0.06% gains in the Sensex. The scrip had also underperformed the market in past one quarter, rising 0.35% as against Sensex's 2.69% rise. The scrip, however, outperformed the market in past one year, surging 62.15% as against Sensex's 23.8% rise.

The large-cap company has equity capital of Rs 971.22 crore. Face value per share is Rs 10.

Tata Steel said that a meeting of its board of directors will be held on 18 December 2017 and will conclude on 19 December 2017, to consider a proposal for raising of funds by issue of equity shares or other securities including through qualified institutions placement, rights issue, preferential issue or through any other permissible mode or a combination thereof, subject to such regulatory/statutory approvals as may be required, including approval of shareholders of the company, if applicable.

On a consolidated basis, Tata Steel reported net profit of Rs 1017.78 crore in Q2 September 2017, compared with net loss of Rs 49.38 crore in Q2 September 2016. Net sales rose 24.2% to Rs 32101.03 crore in Q2 September 2017 over Q2 September 2016.

Tata Steel is one of the leading steel producers in the world.

14-Dec-2017  Tata Steel to hold board meeting
Tata Steel to hold board meeting

Tata Steel will hold a meeting of the Board of Directors of the Company on 18 December 2017, to consider, inter alia, a proposal for raising of funds by issue of equity shares or other securities including through qualified institutions placement, rights issue, preferential issue
14-Dec-2017  Other announcement of TATA STEEL LIMITED
Other announcement of TATA STEEL LIMITED

This is to inform you that a meeting of the Board of Directors of the Company will be held on December 18, 2017 and will continue and conclude on December 19, 2017,to consider, inter alia, a proposal for raising of funds by issue of equity shares or other securities including through qualified institutions placement, rights issue, preferential issue or through any other permissible mode or a combination thereof, subject to such regulatory/ statutory approvals as may be required, including approval of shareholders of the Company, if applicable (the 'Issue'). The proposal for the Issue will be considered by the Board of Directors of the Company on December 19, 2017. This intimation is issued in terms of Regulation 29(1)(d) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This is for your information and records.
06-Dec-2017  Tata Steel Limited - Analysts/Institutional Investor Meet/C...
Tata Steel Limited - Analysts/Institutional Investor Meet/Con. Call Updates

Tata Steel Limited has informed the Exchange regarding Analysts/Institutional Investor Meet/Con. Call Updates
04-Dec-2017  In Focus: Tata Steel v JSW Steel
In Focus: Tata Steel v JSW Steel

Strengths and weaknesses

The Tata Steel stock has been outperforming JSW Steel on streamlining of operations and captive raw materials supply

The Tata Steel stock has been outperforming JSW Steel, its domestic competitor, on streamlining of operations and captive raw materials supply. Tata Steel has returned 23%, while JSW Steel gained 16% in the three months to 19 October 2017. Even over a medium period of six months and a year, Tata Steel has outperformed JSW Steel. Both the counters have outperformed the broad market and the metals index over these timeframes.

However, over a longer period, JSW Steel has been the outperformer. JSW Steel returned 116% v Tata Steel’s 59% over three years and 256% as against 83% over five years.

What are the reasons for Tata Steel racing against JSW Steel? The first is the decision to merge its European steel operations with that of German steelmaker Thyssenkrupp AG. The strategy will allow the Indian steel maker to focus on expansion in India and reduce its debt exposure to the European operations.

Steel is of strategic importance for any industrialized nation. Historically, all nations during their industrialization phase have been supported by a strong domestic steel industry. The National Steel Policy, 2017, aspires to achieve 300 million tonnes per annum (mtpa) of steelmaking capacity by the calendar year (CY) 2030.

JSW Steel is the largest domestic steel maker, while Tata Steel’s total capacity is higher. Tata Steel Group’s annual crude steel capacity was 27.5 mtpa end March 2017. The world’s second-most geographically- diversified steel producer has operations in 26 countries and commercial presence in over 50 countries. The annual crude steel capacity of the Indian operations of Asia’s first integrated private steel company set up in 1907 is nearly 13 mtpa. Besides a 10-mtpa facility at Jamshedpur in Jharkhand, the first phase of three mtpa of the second six-mtpa green-field steel plant at Kalinganagar in Odisha was commissioned in CY 2016. Jamshedpur steel capacity is 10 mtpa.

Tata Steel acquired British steelmaker Corus, with crude steel production capacity of over 12.1 mtpa, on 2 April 2007 to move from the world’s 56th largest steelmaker to the sixth-largest. However, it decided to put its entire UK business on sale in the face of a slump in steel demand and prices some nine years after it bought.

Recently, Tata Steel and ThyssenKrupp AG signed a memorandum of understanding to create a leading European steel enterprise by combining the flat steel businesses of the two companies in Europe and the steel mill services of the Thyssenkrupp group.

Tata Steel’s began establishing its global presence in CY 2004 with the acquisition of NatSteel, Singapore. A majority stake was acquired in Thailand-based steelmaker Millennium Steel in CY 2015, strengthening the South-East Asian operations

JSW Steel has increased its total installed capacity to 18 mtpa from 1.6 mtpa in CY 2002 to 18 mtpa at its plants at Vijaynagar in Karnataka (12 mtpa), Salem in Tamil Nadu (one mtpa) and Dolvi in Maharashtra (five mtpa).

JSW Steel’s current operations in India comprise 12.50 mtpa (around 70% of the capacity) of flat products and 5.5 mtpa (around 30% of the capacity) of long products, while Tata Steel India’s business consists of 10 mtpa of flat products (around 77% of the capacity ) and three mtpa of long products (around 23% of the capacity).

JSW Steel’s crude steel production increased from 8.52 mt in the fiscal ended March 2013 (FY 2013) to 15.8 mt FY2017 while Tata Steel’s standalone crude deliveries increased from 7.94 mt in FY 2013 to 10.97 mt in FY2017. Tata Steel’s consolidated crude steel deliveries were 23.88 mt in FY2017.

JSW Steel has limited captive linkages for key raw materials, iron ore and coking coal. The entire coking coal requirement is imported, while iron ore is procured from domestic and international sources, thus getting exposed to volatility in raw material prices and foreign exchange fluctuations. However, five iron ore mines have been acquired. They could contribute 15%-20% to the overall requirement at the current level of capacity. Two of the five mines are likely to start production in the half year ended (H1) of FY2018 and the remaining three by the end of FY2018.

Coking coal is a major raw material for making steel. Most of it is imported, exposing the steel makers to raw material price inflation and forex risks. Increase in coking coal price without a commensurate increase in steel prices adversely affects the margins.

Despite being the only Indian steel major with partial supplies of captive coking coal, Tata Steel still has to source nearly 81% of its consolidated requirements from merchants and imports. JSW Steel is a pure steel convertor, sourcing its raw materials from third-party merchant suppliers. Coking coal forms the largest expense in raw material costs, constitutes nearly 56% of its total raw material costs.

Tata Steel is among the lowest-cost steel producers globally due to captive iron ore (100%), captive coking coal (30%) and lowest specific fuel consumption parameters. Second, the company’s value-added product mix, including dominant position in the key high margin segments including auto market, where it is the market leader. Third, better operational efficiencies are leading to higher profitability.

Tata Steel’s net sales fell to Rs 111562 crore in FY 2017 from Rs 133538 crore in FY 2013. Profit before interest, depreciation and tax (PBIDT) was up to Rs 9354.52 crore from Rs 5410.48 crore. There were losses in FY2017. The average PBIDT margins were 8.1% over the last fiscal years.

Tata Steel India’s Ebitda per tonne improved to Rs 11078 compared with Rs 7610 in Q2 of FY 2017. Standalone realizations rose 7.2% to Rs 46172 per tonne compared with Q2 of FY 2017. Tata Steel Europe’s Ebitda per tonne fell to Rs 2896 per tonne compared with Rs 5020 per tonne due to lower selling prices particularly in hot rolled coil and lower production.

JSW Steel’s total sales of 14.7 mt included value-added steel sales of 5.06 mt, 34% of total sales in FY 2017. The Ebitda per tonne declined 0.5% to Rs 7667 over the year but increased 2.8% over the previous quarter, driven by higher margins and volumes.

Tata Steel’s average earnings before interest, tax, depreciation and amortization (Ebitda) margins was 25.5%, while JSW Steel’s was 18.3% over the last five years.

JSW Steel’s net sales recorded a compounded annual growth rate of 9.43% to Rs 54628 crore to Rs 54628 crore, profit before interest, depreciation and tax (PBIDT) 17.72% to Rs 12326 crore and Pat 37.74% to Rs 3467 crore between FY2013 and FY2017. The average PBIDT margins were 16.6% for the last five years.

Tata Steel enjoys higher Ebitda per tonne than JSW steel due to two factors. First, the cost of iron ore and coal is lower for Tata Steel due to captive mines. The blended realizations are also higher because of higher proportion of domestic sales, fetching higher prices than exports.

Tata Steel’s net debt was Rs 78303 crore, while JSW Steel’s net debt was Rs 42764 crore in Q2 of FY 2018. Cash and cash equivalents of Tata Steel was Rs 11956 crore and of JSW Steel Rs 1163 crore.

Tata Steel expects a capex of Rs 7000 crore in FY 2018, mainly on maintenance and capacity expansion. It recently received environmental clearance for 11-mtpa capacity at the Jamshedpur site and will de-bottleneck capacity by one mtpa. The Jamshedpur site has limitation of land availability due to growth of Jamshedpur city (population of 1.3 crore). There are plans to enhance production capacity at the Kalinganagar plant in Odisha to six mtpa from three mtpa.

Land available at the Odisha site is nearly double the land available at the Jamshedpur site, providing ample scope to build a 15-mtpa steel complex in Odisha. The Odisha site also has logistic advantage due to proximity to ports and iron ore mines.

There will be participation to acquire stressed steel assets from ongoing bankruptcy proceedings in India. The aim is to double the crude steel capacity to 26 mtpa by CY 2022 through organic and inorganic expansion.

JSW Steel has outlined a capex program of Rs 26800 crore to expand steelmaking capacity at the Dolvi works to 10 mtpa from the existing five mtpa increasing overall steelmaking capacity to 23 mtpa by March 2020.

JSW Steel has been the fastest-growing mainstream steel company in India. Being a converter, it is dependent on third-party merchant suppliers of both iron ore and coking coal for meeting its raw material requirements. The strong execution skills were on display while commissioning of new capacity in a time-bound manner without significant cost overrun, thus, making the new capacities highly value accretive with return on incremental capital being very lucrative.

JSW Steel’s impressive turnaround of Ispat’s assets has firmly established it as a turnaround specialist in the domestic market. JSW Steel bought 108.66 crore fresh shares or 41.29% stake at Rs 19.85 per share in debt-ridden Ispat Industries from Pramod and Vinod Mittal, brothers of steel czar L N Mittal in December 2010 for Rs 2157 crore. Ispat Industries was subsequently named as JSW Ispat. JSW Steel later increased its stake to 46.75%. The merger of JSW Ispat with itself was completed in June 2012. The shareholders of JSW Ispat got one JSW Steel share for every 72 shares held. JSW Steel has been able to diversify its production base from southern India to west India, thus limiting dependence on any one market.

Outlook

The steel sector has been upbeat since a year due to various trade remedial measures taken by the Union government and increasing steel prices. Definitive antidumping duty for the next four years on steel products has insulated the domestic steel industry from predatory priced imports, providing a floor price to domestic steel players.

Since CY 2015, China has been announcing policies to cut production capacity of 150 mt over the next five years. A notable announcement in CY 2016 was to shut all induction furnaces other than those that are producing specialty steels for forging and allied industries. As China continues on the path of re-balancing its steel production and consumption, steel prices in the region are likely to be volatile.

While it is expected that production cuts will progress as per plan in China, companies tend to increase production when prices improve. Thus, it may take some time for the steel industry to see a more balanced situation. Indian steel companies are favorably positioned on the global cost-curve owing to their low-cost domestic iron ore and competitive conversion costs.

The finer print
Though sales of Tata Steel and JSW Steel increased, the former posted improved Ebitda margins compared with the latter in Q1 of FY 2018
Parameters Tata Steel Tata Steel  JSW Steel 
 India Consolidated Standalone
Capacity (million tonnes) 13 27.5 18
Production(million tonnes) 10.97 23.88 15.8
Turnover (Rs crore) 53261 117420 56913
Ebitda (Rs crore) 11953 17025 11543
Ebitda  margin 22.4 14.5 20.3
Reported Pat 3445 -4169 3577
Ebitda per tonne 10901 7132 7815
Net debt-to-equity 0.44 1.72 1.53
Net debt-to-ebitda 1.8 4.3 3.2
As of fiscal ended March 2017
04-Dec-2017  Tata Steel nudges higher after pact to acquire 74% stake in BPPL
Tata Steel nudges higher after pact to acquire 74% stake in BPPL

The announcement was made after market hours on Friday, 1 December 2017.

Meanwhile, the S&P BSE Sensex was up 15.21 points or 0.05% at 32,848.15.

On the BSE, 24,000 shares were traded on the counter so far as against the average daily volumes of 3.65 lakh shares in the past one quarter. The stock had hit a high of Rs 686.80 and a low of Rs 681 so far during the day. The stock had hit a 52-week high of Rs 734.90 on 30 October 2017 and a 52-week low of Rs 377.45 on 27 December 2016.

The stock had underperformed the market over the past one month till 1 December 2017, sliding 3.73% compared with the Sensex's 2.28% fall. The stock had, however, outperformed the market over the past one quarter, gaining 4.74% as against the Sensex's 2.95% rise. The scrip had also outperformed the market over the past one year, advancing 66.15% as against the Sensex's 23.62% rise.

The large-cap company has equity capital of Rs 971.22 crore. Face value per share is Rs 10.

Tata Steel said it had on 30 November 2017, executed definitive agreements to acquire the balance of 74% equity shares of Bhubaneshwar Power (BPPL) from JL Power Ventures for a cash consideration of Rs 255 crore. Tata Steel together with its 100% subsidiary TS Alloys held 26% equity shares in BPPL. The acquisition provides Tata Steel an opportunity to increase its captive source of power to meet its growing demand.

On a consolidated basis, Tata Steel reported net profit of Rs 1017.78 crore in Q2 September 2017, compared with net loss of Rs 49.38 crore in Q2 September 2016. Net sales rose 24.2% to Rs 32101.03 crore in Q2 September 2017 over Q2 September 2016.

Tata Steel is one of the leading steel producers in the world.

04-Dec-2017  Tata Steel Limited - Acquisition
Tata Steel Limited - Acquisition

Tata Steel Limited has informed the Exchange regarding Share Purchase Agreement for acquisition of 74% Equity shares of Bhubaneshwar Power Private Limited.
01-Dec-2017  Tata Steel to acquire 74% stake in Bhubaneshwar Power
Tata Steel to acquire 74% stake in Bhubaneshwar Power

Tata Steel has on 30 November 2017 executed definitive agreements to acquire 74% equity shares of Bhubaneshwar Power from JL Power Ventures for a consideration of Rs 255 crore.

Bhubaneshwar owns a 135 MW (2x67.5MW) thermal power plant at Anantapur Village in Cuttack District of Odisha.

01-Dec-2017  Other announcement of TATA STEEL LIMITED
Other announcement of TATA STEEL LIMITED

Share Purchase Agreement for acquisition of 74% Equity shares of Bhubaneshwar Power Private Limited
Incorporation Year 1907 
Registered Office Bombay House,24 Homi Mody Street Fort,
,
Maharashtra-400001
Telephone 91-022-66658282 
Fax 91-022-66657724 
Chairman N Chandrasekaran
Managing Director T V Narendran
Company Secretary K Parvatheesam 
Auditor Deloitte Haskins & Sells LLP 
Face Value(Rs) 10 
Market Lot
Listing London,Luxembourg,MSEI,BSE,NSE,Singapore 
Registrar TSR Darashaw Ltd
6-10 Haji Moosa,Patrawala Ind.Estate,DrEMoses Rd Mahalaxm,Mumbai - 400 011 
Toll Free number: 1800-425-5501 / 1800-103-5501
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