ABOUT THE COMPANY
Tata steel managed by the well known Tata Group needs no introduction for itself.The steel giant of the nation is backed by excellent management with wide network across the country and overseas with well experienced promoters. The company has croosed the Indian frontier and expanded the business in large extent in overseas making the company one of the biggest shareholder in the field of Steel.
ABOUT THE FINANCIALS
ABOUT THE FINANCIALS
The company has announced its third quarter results. The company's Q3 consolidated net profit was up 122% at Rs 1,003 crore versus Rs 473 crore, year-on-year, YoY.Its consolidated net sales were up 9.74% at Rs 28,610 crore versus Rs 26,070 crore, YoY.
Raw Material costs for the quarter came in at Rs Rs 10,270 crore versus Rs 8,030 crore, YoY.
The company reported EBITDA margins of 11.6% this quarter versus 13% in the same quarter last year.Its total expenditure stood at Rs 26,790 crore versus Rs 24,410 crore, YoY.European sales were up to Rs 17,940 crore versus Rs 16,755 crore, YoY, while EBITDA from the region came in at Rs 395 crore versus Rs 660 crore, YoY.
Raw Material costs for the quarter came in at Rs Rs 10,270 crore versus Rs 8,030 crore, YoY.
The company reported EBITDA margins of 11.6% this quarter versus 13% in the same quarter last year.Its total expenditure stood at Rs 26,790 crore versus Rs 24,410 crore, YoY.European sales were up to Rs 17,940 crore versus Rs 16,755 crore, YoY, while EBITDA from the region came in at Rs 395 crore versus Rs 660 crore, YoY.
Its saleable steel output was up 3.8% at 1.75 million tonne as compared to the same period last year.The company's consolidated net debt stands at Rs 52,836 crore as on December 31. Consolidated operating margin for Q3 came in at 11.6%.
NEWS FLASH
1.The management of Tata Steel said that margins from Europe were under pressure on the back of inflated raw material costs. Managing raw material costs was one of the key challenges in the short-term, the management said.
NEWS FLASH
1.The management of Tata Steel said that margins from Europe were under pressure on the back of inflated raw material costs. Managing raw material costs was one of the key challenges in the short-term, the management said.
2. The company expects construction sector in Europe to remain weak in 2011. It however sees demand in Europe rising 3-5% in the calendar year.
3.The management also said that work had started at the Orissa steel plant.
MY VIEW
MY VIEW
The stock has been a good performer and could be titled as safe stock because of its well established corporate backing. The stock holder will be rewarded in the coming days as the company’s profit extend with rise in steel prices. The company has actual field work and could perform better in coming days.
