Indian Stock Picks - Share Ideas , News, Fundamentals

Tata Steel has announced its third quarter results of FY10. It has reported 155.47% jump in its standalone net profit of Rs 1191 crore as against Rs 466.2 crore, year-on-year basis (YoY) and up 31.89% from Rs 903 crore, quarter-on-quarter basis (QoQ). Standalone net sales shot up 32.78% to Rs 6,307 crore as against Rs 4,750 crore, YoY and up 12.04% from Rs 5,629 crore, QoQ.

Tata Steel Ltd has posted a net profit of Rs 902.94 crore for the second quarter ended September 30, 2009 as against Rs 1,787.81 crore for the quarter ended September 30, 2008. Total income has decreased from Rs 7,054.33 crore for the quarter ended September 30, 2008 to Rs 5,768.16 crore for the quarter ended September 30, 2009.

Tata Steel has registered a 21 per cent rise in its sales at 28.75 lakh tonnes in the first half of the current fiscal on the back of robust demand from the construction sector. In the corresponding period last year, the steel major's sales stood at 23.80 lakh tonnes. Its sales rose by 19 per cent to 14.56 lakh tonnes in the second quarter this fiscal, compared to 12.20 lakh tonnes in the corresponding period last fiscal. During the second quarter of the fiscal, the company saw its crude steel output rising by 21 per cent to 16.40 lakh tonnes as compared to the 13.56 lakh tonnes in the same period last fiscal. In the first half of the fiscal, the company reported 21 per cent increase in crude steel production to 31.43 lakh tonnes compared to 26.08 lakh tonnes in the same period in the previous fiscal. Its saleable steel production increased by 14 per cent to 15.19 lakh tonnes during the second quarter as against 13.30 lakh tonnes in the corresponding period previous fiscal. The co...

T ata Steel on Thursday reported a consolidated net loss of Rs 2,238.53 crore for the first quarter ended June 30, 2009. The company had a net profit of Rs 3,914.62 crore in the same quarter in the previous fiscal, Tata Steel said in a filing to the Bombay Stock Exchange. Total income declined to Rs 23,292.31 crore for the quarter ended June, against Rs 43,496.17 crore in the same period in the corresponding fiscal. The company has posted a consolidated net loss (after minority interest and share of profit of associated) of Rs 2,208.68 crore for the quarter under review, however it had a net profit (after minority interest and share of profit of associated) of Rs 3, 900.90 crore in the same period last year. Total expenditure for the period under review is placed at Rs 24411.15 crore (Rs 37265.59 crore).

Tata Steel reported a 47 per cent drop in net profit to Rs 789.83 crore for the first quarter ended June 30, 2009. Total income declined to Rs 5,661.89 crore during the April-June quarter from Rs 6,165.14 crore in the corresponding period a year -ago. Steel output jumped 30.51 per cent during the quarter under review at 1.54 million tonnes from 1.18 million tonnes in the comparable period last year and sales at 1.42 million tonnes as against 1.16 million tonnes. Export turnover of the company slipped to Rs 334.95 crore in the Q1, 2009 from Rs 868.13 crore in the same period of the previous fiscal.

Tata Steel will issue 65.4 million GDRs at $7.64 apiece, aggregating $500 million or Rs 372.2 a share. To be listed on the Professional Securities Market of the London Stock Exchange, this will be the largest ever Indian GDR offering on the LSE. A Tata Steel press release says that the GDR offering had attracted demand from good quality investors, which enabled the company to increase the size from $ 400 million to $500 million. The press release further says “Though the company has adequate liquidity with no material repayments in the next 12 months, the equity raising exercise will help in capitalising the balance sheet and enable deployment in highly attractive projects – like the ongoing expansion of Jamshedpur in India and overseas mining projects'. Each GDR represents one ordinary share of Tata Steel. The GDR price represents a discount of 10.6 per cent vis-À-vis Tata Steel’s closing price on the Bombay Stock Exchange. According to a research report from Standard Chartered , ...

Tata Steel has reported a 61 per cent drop in its consolidated net profit at Rs 4,849 crore for the year ended March 31, 2009, against Rs 12,322 crore registered in the same period last year mainly due to a sharp fall in demand in Europe and South Asia. The copany has incurred an additional costs of Rs 4,094.53 crore in for restructuring, impairment and disposals. Total income, including that of Corus, increased by 12 per cent to Rs 1,47,329 crore in FY’09 (Rs 1,31,534 crore). Had the company followed the practice of recognising changes in actuarial valuations of pension plans of Tata Steel Europe in the profit and loss account, the consolidated profit after taxes, minority interest and share of profit of associates would have been lower by Rs 5,497 crore.

Tata Steel, on Thursday said its sales volume surged by 31 per cent to 4.52 lakh tonnes in April on the back of robust demand from auto and construction sectors. In the corresponding month last year, the company's sales stood at 3.43 lakh tonnes, a statement from Tata Steel said. During the month under review, Tata Steel saw its saleable steel production surging by 30 per cent to 5.16 lakh tonnes as against 3.96 lakh tonnes. The sale of long products, mainly used in construction industry, increased by 39 per cent, while that of flat items used by auto and consumer durable sectors, increased by 27 per cent. The steel major's crude steel output for the month also went up by 22 per cent to 5.03 lakh tonnes from 4.12 lakh tonnes, while hot metal production rose by 30 per cent to 5.79 lakh tonnes as against 4.45 lakh tonnes. The company claimed that two of its steel melting shops at Jamshedpur works achieved best-ever April production at 2.02 lakh tonnes and 2.66 lakh tonnes, respec...

Tata Steel Ltd announced on Friday that its consolidated net profit for the third quarter ended December 31, 2008 declined to Rs 732.21 crore from Rs 1,311.76 crore reported during the same quarter in 2007  but its shares rose as the market had expected a loss. However, the group’s total income for the quarter ended December 31, 2008 has increased to Rs 33,222.59 crore from Rs 32,074.34 in the same period in 2007.

Tata Steel today reported 56.37 per cent drop in its net profit at Rs 466.24 crore for the third quarter ended December 31, 2008, as compared to Rs 1,068.58 crore in the same period last year. Total income declined 4.19 per cent to Rs 4,810.63 crore for the quarter under review as against Rs 5,020.97 crore. During the nine month ended December 2008, the company reported net profit of Rs 3,742.45 crore, as compared to Rs 3,481.52 crore in the corresponding period last fiscal. Total income of the nine-month ended December 2008 rose to Rs 18,076.92 crore, whereas it was Rs 14,192.71 crore in the year-ago period.

(The Hindu Business Line) Better price realisation, efficient cost control and management have led to more than two-fold increase in Tata Steel’s consolidated net profits for the quarter ended September 30, Mr B. Muthuraman, Managing Director, Tata Steel, said here on Tuesday. Overall, we have done well, he said, while conceding that there were concerns in the near term, though not so much in India. Mr Muthuraman said a series of initiatives had been taken to effect cost reduction and improve performance. Three furnaces at Jamshedpur were now producing what six were earlier. Against a targeted cost reduction of Rs 890 crore planned for the year, Rs 450 crore had been achieved so far and the target had been raised by Rs 350 crore and he hoped to make an additional Rs 300 crore on this front. Admitting that prices in India and South Asia had come down by $350 a tonne, he said “we have to wait and see for the January quarter.” There were some signs of the economy picking up. The Governmen...

Corus will cut its crude steel output with October-March by 30%. The output cut is to align production with European demand, it said. Earlier too, Corus had announced a 20% output cut for the period between October and December. 

Tata Steel Ltd has posted a 21.78-per-cent rise in its standalone net profit at Rs 1,488.40 crore for the quarter-ended June 30, against Rs 1,222.11 crore logged in the same period of last year, This is despite a Rs 303.42-crore loss accounted for on the foreign exchange front. Last year there had been a forex gain of Rs 553 crore. Total income rose 43.48 per cent at Rs 6,177.25 crore for the quarter, against Rs. 4,305.33 crore. Steel production for the quarter was higher at 1,186,873 tonnes as against 1,064,832 tonnes. Export turnover was at Rs 880.30 crore as compared with Rs 361.34 crore. Interest costs at Rs 241.73 crore (Rs 41.61 crore) rose multifold.

(The Hindu Business Line 23rd April 2008) Standard & Poor’s Ratings Services on Wednesday revised its outlook on Tata Steel to stable from positive and affirmed its ‘BB’ corporate credit rating on the company. At the same time, the ‘BB’ rating on Tata Steel’s senior unsecured bank loans of $750 million and $500 million have been affirmed. The outlook revision reflects the persisting uncertainty on the infusion of additional equity, as envisaged in the initial funding plan for the acquisition of Corus (Corus Group PLC, not rated), and some increases in the capital commitments of the company, specifically for its expansion projects in India. “Tata Steel’s initially-proposed plan of issuing hybrid securities ($2.56 billion) and equity ($500 million), to partially fund the $14 billion acquisition of Corus, has been deferred due to prevailing credit market conditions,” said Standard & Poor’s credit analyst Mr Anshukant Taneja. Although Tata Steel intends to raise incremental equity ...

Tata Steel: risky bet on leverage (Live mint.com 4th Feb 2008)India’s largest private sector steel firm Tata Steel Ltd’s valuation has risen by about 45% since news of its Corus Group Plc. acquisition first hit the markets in October 2006. Apart from the US market, steel prices have been strong since the acquisition. And the fact that Corus has a high operating leverage has led to expectations that profit growth would be super normal. Corus’ results for the June quarter supported this theory. The operating profit of overseas subsidiaries (including a marginal contribution by NatSteel Asia Pte Ltd and Millennium Steel Public Co. Ltd) stood at Rs3,200 crore, much higher than the combined profit of Rs2,265 crore reported by overseas subsidiaries in the March quarter. But consolidated results for the September quarter, which were released only in late January, show that the high leverage can even work against the company. Operating profit of the overseas subsidiaries fell 15% compared wit...

Tata Steel earnings growth flat on higher interest cost (The Hindu Business Line 1st Feb 2008)Hit by higher interest cost and a marginal fall in production, Tata Steel posted a flat growth in net profit at Rs 1,069 crore for the quarter ended December 31, 2007 compared with Rs 1,064 crore for the same period a year ago. The result does not include that of the Anglo-Dutch Corus Group, which Tata Steel bought for $12.9 billion last year. Consolidated results with Corus would be furnished at a later date, said a senior company official. Steel production for the quarter was down to 12,45,926 tonnes, against 12,89,822 tonnes logged during the year ago period. Sales for the quarter remained flat at 12,43,500 tonnes (12,34,404 tonnes). Interest cost soared over 597 per cent to Rs 363 crore from Rs 52 crore. More

Stocks to pick: Tata steel, TCS, Petronet LNG (The Economic Times 21th Jan 2008 Research By Stock CMP Target Recommendation Merrill Lynch Tata Steel Rs. 782 NA Buy Credit Suisse Petronet LNG Rs 102 NA Underperform Citigroup Tata Consultancy Services Rs 904 NA Buy More

Tata Steel expects $25 bn global turnover (The Economic Times 6th Dec 2008)Tata Steel, with its global arm Corus, is poised to cross a combined global turnover of $25 billion in 2007-08. Apart from Corus, Tata Steel group includes Nat Steel Asia and Millenium Steel. “We are looking at a turnover of $25 billion this year. The Corus acquisition came into effect on April 3, 2007, and hence the impact will be on Tata Steel’s balance sheet of FY 2008,” Tata Steel managing director, B Muthuraman said at a press conference here on Saturday. “Our EBIDTA margin is also set to double from the current level of 12-13% to 26% in next five years as a result of the Corus acquisition,” he added. A substantial part of the improved earnings would come from the second wave of synergy that Tata Steel hopes to derive along with Corus on technology, systems and processes over these years. More

'Jamshedpur plant to be single largest unit' (Business Standard 1st Jan 2008) On completion of the 10-mtpa capacity expansion by Tata Steel in 2010, the Jamshedpur plant will become the single largest unit and one of the most modern plants in the world, according to B Muthuraman, MD, Tata Steel."With the completion of the 10 mtpa expansion project, we will be able to fulfill the promises made to our customers even better," B Muthuraman said in a company press release. More

Tata Steel, SAIL to form JV for coal mining (Business Standard 1st Jan 2008)Tata Steel and state-run Steel Authority of India (SAIL) are all set to form a joint venture for coal blocks."SAIL and Tata Steel are likely to sign an agreement to form a joint venture company for mining four coking coal blocks, most likely in Jharkhand which has reserves of about 500 million tonne for meeting their production needs," a senior government official told PTI.He said both companies would seek to put in place a formal JV company and then begin scouting for more coal blocks. The board would have representatives from both the companies. The new entity is likely to have an initial capital of Rs 2 crore to be shared equally by the partners. More