TATASTEEL.BO - Tata Steel Limited

BSE - BSE Real-time price. Currency in INR
402.95
+3.30 (+0.83%)
At close: 3:44PM IST
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Previous close399.65
Open401.00
Bid402.20 x 0
Ask402.95 x 0
Day's range394.25 - 407.40
52-week range320.30 - 560.35
Volume887,527
Avg. volume863,600
Market cap485.386B
Beta (3Y monthly)1.21
PE ratio (TTM)5.38
EPS (TTM)74.86
Earnings dateN/A
Forward dividend & yield13.00 (3.25%)
Ex-dividend date2019-07-04
1y target est724.93
  • Port Talbot steelworks owner confirms plan to cut up to 1,000 UK jobs
    The Guardian

    Port Talbot steelworks owner confirms plan to cut up to 1,000 UK jobs

    Port Talbot steelworks owner confirms plan to cut up to 1,000 UK jobs. Tata Steel is to make nearly one in eight of its British workforce redundant

  • Reuters - UK Focus

    UPDATE 1-Tata Steel locks horns with union over 3,000 job cuts

    Tata Steel Europe said on Wednesday it had begun talks with its workers on a "transformation programme" that involves up to 3,000 job cuts, prompting an angry response from union leaders who said the plan needed to be revised. Indian-owned Tata Steel, which announced restructuring plans on Nov. 18 in a bid to boost profitability, added the further detail on Wednesday that up to 1,600 cuts were expected in the Netherlands, 1,000 in Britain and 350 elsewhere.

  • Tata Steel locks horns with union over 3,000 job cuts
    Reuters

    Tata Steel locks horns with union over 3,000 job cuts

    Tata Steel Europe said on Wednesday it had begun talks with its workers on a "transformation programme" that involves up to 3,000 job cuts, prompting an angry response from union leaders who said the plan needed to be revised. Indian-owned Tata Steel, which announced restructuring plans on Nov. 18 in a bid to boost profitability, added the further detail on Wednesday that up to 1,600 cuts were expected in the Netherlands, 1,000 in Britain and 350 elsewhere. Unions in Britain and the Netherlands said that after that deal collapsed, they were given a jobs guarantee until 2021, and they would expect the company to stick to that.

  • Reuters - UK Focus

    Tata Steel in talks with European Works Council on job cuts -statement

    Tata Steel Europe said in a statement on Wednesday that it was in talks with a European Works Council on job cuts being made as part of restructuring. The company said http://bit.ly/2QWTeNv that of the 3,000 job cuts across its European business announced on Nov. 18, up to 1,600 are expected in the Netherlands, 1,000 in the United Kingdom and 350 in other parts of the world. Indian-owned Tata Steel had announced the cuts as part of wider efforts to boost profitability in Europe, saying around half of the losses would be in the Netherlands and around two-thirds would be office-based roles.

  • Analysts Bet Cheapest Indian Stock, Tata Steel, Can Rebound
    Bloomberg

    Analysts Bet Cheapest Indian Stock, Tata Steel, Can Rebound

    (Bloomberg) -- A revamp of its European operations, an improved product mix and a ban on cheaper steel imports to India may bolster the fortunes of Tata Steel Ltd.’s shares, the least valued stock on the South Asian nation’s benchmark equities gauge.Tata Steel shares have lost nearly half of their value since Jan. 2018 to trade at a price-to-earnings ratio of 4.7, the lowest on the S&P BSE Sensex Index. The company, which last year got more than 50% of its sales abroad, last week outlined job cuts and other measures aimed at cutting costs in Europe, which it called a “dumping ground” for steel.“Indian steel prices may have found a floor, thanks to the minimum import price, and have already started moving up,” said Siddharth Gadekar, an analyst at Equirus Securities Pvt., “That kind of stability in prices gives investors confidence.”Tata Steel has been closing and selling plants in the U.K since the 2008 financial crisis to make its business there more profitable. It’s now focusing on India, and aims to ramp up capacity as demand is set to expand by as much as 7% in 2020, according to the World Steel Association. That’s the most among the top 10 steel using countries.While protection from cheaper shipments from abroad will also benefit Tata Steel’s domestic peers, its valuation advantage, product mix and debt reduction steps may increase its appeal to investors. India imposed a minimum import price for steel products in 2016.“Tata’s volume of sales should beat the rest of the industry because of their value for money offering, and their entrance into the pipeline steel category,” said Richard Leung, an analyst with Bloomberg Intelligence, “The rest of the industry may see muted growth next year because of reliance on legacy demand like automobiles.”To be sure, Tata Steel’s debt-to-equity ratio is higher than most local peers, largely due to its 2007 purchase of Corus Group Plc for about $13 billion and its acquisition of Bhushan Steel for about $5.3 billion last year. Still, Moody’s Investors Service said in a Nov. 25 note that the company’s European cost cuts will support a turnaround in less profitable operations that have hurt the company’s overall credit quality.Shares of the company fell 0.4% to 422.45 rupees as of 11:03 am Mumbai trading compared to a 0.3% gain on the Sensex index.“In a down cycle the companies that have higher debt tend to trade at a discount,” said Equirus Securities’ Gadekar, “With their earnings profile and current steel prices, they can service their debt easily.”(Updates with shares in eighth paragraph.)\--With assistance from Swansy Afonso and Bijou George.To contact the reporter on this story: Ronojoy Mazumdar in Mumbai at rmazumdar7@bloomberg.netTo contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Margo TowieFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Exclusive: India probe finds bearings collusion by SKF, Schaeffler, Tata Steel units
    Reuters

    Exclusive: India probe finds bearings collusion by SKF, Schaeffler, Tata Steel units

    An Indian antitrust investigation has found that units of Tata Steel, Sweden's SKF and Germany's Schaeffler colluded on the pricing of bearings, a report seen by Reuters shows, opening them up to potential fines. The Competition Commission of India (CCI) began an investigation in 2017 after allegations that five companies colluded on bearings prices from 2009-2014 to pass higher raw material costs onto customers in the auto sector. European Union antitrust regulators fined SKF, Schaeffler and three Japanese auto parts makers $1.3 billion in 2014 for taking part in a bearings cartel from 2004 through 2011.

  • How the Steel Industry Made Millions From the Climate Crisis
    Bloomberg

    How the Steel Industry Made Millions From the Climate Crisis

    (Bloomberg Opinion) -- Europe’s steel industry is in crisis again and there’s no shortage of reasons for all the financial losses and job cuts. Stagnating demand, surplus production capacity, higher iron ore prices and a surge in imports caused by trade conflicts are just some of them.But when Tata Steel Ltd. announced 3,000 job losses at its European arm this week, the company also pointed to a “significant increase” in the cost of carbon emission permits.Blaming the CO2 price has become a common yet questionable refrain in the industry. ArcelorMittal offered a similar excuse when it announced big production cuts in May. British Steel Ltd.’s collapse that same month was also linked to its obligation to purchase expensive carbon credits.The reality looks rather different. Steel is responsible for about 7% of global emissions but even today the sector is mostly shielded from having to buy carbon pollution permits in Europe. Steelmakers are in a tight spot but they shouldn’t grumble about a policy that’s been lucrative for them in the past and whose purpose is to help them clean up their act.To recap, the EU’s emission trading system was created more than a decade ago to help mitigate the climate crisis by making polluters pay. Utilities, industrial plants and airlines are required to obtain permits to match how much they pollute. The reason for the industry’s complaints now is that the cost of those allowances has more than trebled in the past two years after the European Union tweaked the system.That’s theoretically difficult for steelmakers because they emit almost two metric tons of CO2 for every ton of steel produced. A roughly 50-euro ($55) CO2 price for each marginal ton of output is significant because the spread between steel prices and the cost of the raw materials needed to make it has fallen to about 250 euros a metric ton. “Considering that steel makers are barely profitable the pressure from CO2 prices is substantial,” says Benjamin Jones of CRU, a metals and mining consultancy. Yet all the steelmakers’ complaints ignore an important financial safety net for the industry. Because of the perceived threat of so-called “carbon leakage” (where companies decamp to places with cheaper pollution costs) the least polluting steelmakers still receive free allowances that cover 100% of their emissions.(1)“Given how generous free allocation has been, steel should be among the industries hurting the least from the carbon price,” says Jahn Olsen, a carbon analyst at BloombergNEF.Furthermore, the production cuts after the 2008-2009 recession left steelmakers with large surpluses of emission permits which they were free to keep or sell at a profit. While the extent of the industry’s windfall profit from this is disputed, one study found it could be 8 billion euros ($8.8 billion). Some steelmakers are still benefiting today.Tata Steel’s European arm generated 211 million pounds ($273 million) of income from selling surplus allowances in the fiscal year to March, its annual accounts show. It’s pretty bold of the steelmaker to call out the rising cost of pollution permits when it’s just booked a big profit from them. There are echoes here of what happened to British Steel,(2) which sold emission permits only to discover later that it needed them.(3) “The European steel sector is in a tough spot but to blame carbon pricing is disingenuous,” says Sam Van den plas, policy director at Carbon Market Watch. For now the largest and most technically advanced steelmakers probably aren’t having to fork out much for allowances.This will change gradually after 2021 when the so-called fourth phase of emissions trading begins. But the EU still expects to hand out 6.3 billion free permits to polluters during that period, worth more than 150 billion euros at current prices. For now ThyssenKrupp says the impact from carbon pricing is “marginal” and will probably remain so next year. It warns though of “considerable risks” in the post-2021 period.Tata says it expects to spend more than last year’s 211 million-pound gain on permits in coming years, but didn’t provide more detail.ArcelorMittal says it might have to pay out 5 billion euros between 2021 and 2030 at the current CO2 price. On an annual basis that’s about one-eighth of its analyst-estimated operating profit for 2021. This sounds a lot but it assumes the company makes no improvements in cutting pollution.Emission cuts by companies bound by the EU trading system have been fairly impressive but recent progress has come mostly from the power sector. That makes the bloc’s task of reaching climate neutrality by 2050 — something ThyssenKrupp and others have signed up to —  more difficult. Excluding power plants, the largest individual sources of carbon pollution in Europe are all steelworks.  In fairness, there’s an absence of carbon-cutting technologies in sectors like steel and cement. Techniques such as replacing coal with hydrogen in steel production show promise but most are still being trialed. Making them viable commercially would require a higher carbon price and massive investments, including on huge new sources of renewable electricity. Yet the free carbon allowances for steel companies probably didn’t motivate them enough to find more sustainable production methods. In her resolve to redouble the EU’s pollution-cutting efforts, European Commission President Ursula Von der Leyen has floated the idea of a carbon border tax on imports into the bloc to make sure domestic producers aren’t unfairly penalized.The feasibility of such a tax is unproven: Measuring the carbon content of manufactured good is tricky and the levy would have to reflect the fluctuating price of allowances. Even if it complies with World Trade Organization rules, a carbon tax might inflame trade tensions with the U.S.Naturally the steelmakers think a border tax is a great idea as it would expose them to less competition by deflecting “dirty” imports. Astonishingly, they’re lobbying to keep their free pollution allowances even if non-EU steelmakers are forced to pay the bloc’s carbon price. The local industry argues that its non-EU exports would become uncompetitive if it had to pay the full cost of permits while investing in emission-cutting innovations. Its lobbying sounds dangerously like an industry trying to have its cake and eat it.(1) The data show ArcelorMittal and Tata Steel receive allowances that exceedtheir emissions. However some of these must be handed to the power sector to account for the waste gases they process.(2) A company formed of assets sold by Tata Steel to Greybull Capital in 2016(3) Tata Steel sold the permits ahead of a planned merger with ThyssenKrupp's steel business which was then blocked on anti-trust grounds.To contact the author of this story: Chris Bryant at cbryant32@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • What to Watch: Tata Steel, war for Madrid stock exchange, EasyJet results
    Yahoo Finance UK

    What to Watch: Tata Steel, war for Madrid stock exchange, EasyJet results

    A daily overview of the top business, market, and economic stories to watch in the UK, Europe, and abroad.

  • Tata Steel to Cut 3,000 Jobs as Crisis Rips Through Europe
    Bloomberg

    Tata Steel to Cut 3,000 Jobs as Crisis Rips Through Europe

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Tata Steel Ltd. plans to cut as many as 3,000 jobs across its European operations to cut costs in the latest blow to the region’s industry, with the move coming amid a heated general election campaign in the U.K.About two-thirds of the reductions would be office-based staff, the company said in a statement. While the steelmaker didn’t give a detailed breakdown, Tata Steel Works Council said more than half of the planned cuts would be in the Netherlands. The company also has facilities in the U.K.“Stagnant EU steel demand and global overcapacity have been compounded by trade conflicts, which have turned the European market into a dumping ground for the world’s excess steel capacity,” Mumbai-based Tata Steel said.The European steel industry has faced growing headwinds this year amid declining demand, slowing economic growth and the consistent threat of overseas supplies, including exports from Turkey, Russia and China. British Steel Ltd., the U.K.’s No. 2 steelmaker was put into liquidation in May, and has been taken over China’s Jingye Group Co. Apparent demand in the European Union will contract 3.1% this year, lobby group Eurofer warned last month.The steelmaker’s European operations are facing conditions that are “unprecedented,” said Henrik Adam, chief executive officer of Tata Steel in Europe. Other steps to improve performance include boosting sales of higher-value steels, aiding efficiency and cutting procurement costs.The company plans to cut 1,650 jobs in the Netherlands, said Frits van Wieringen, chairman of both the European and Netherlands’ Tata Steel Works Council. He expects the move to lead to a conflict after an accord last year that no jobs would be cut until 2021.Tata Steel fell 1.3% in Mumbai trading, taking this year’s decline to 22%.General ElectionVoters in the U.K. go to the polls next month in a rare winter general election, and Tata Steel’s move is likely to feature as an issue in the showdown, which has been dominated by the Brexit crisis. In the contest, Conservative Prime Minister Boris Johnson is squaring off against Labour leader Jeremy Corbyn.Tata Steel, which bought Corus Group Plc for about $13 billion in 2007, has been closing and selling plants in the U.K. since the 2008 financial crisis to make the business more profitable. The company is focusing on growing in India, where Chairman N. Chandrasekaran aims to ramp up capacity as the nation’s demand is set to expand as much as 7% in the coming years.Tata Steel Europe’s Ebitda sank 90% to 31 million pounds ($40 million) in the first six months of the current financial year from April on revenue of 3.25 billion pounds, according to the statement. The job cuts and other moves target positive cash flow by the end of the year to March 2021.‘Difficult Market’“Europe remains a difficult market but this is how they can deal with the challenges there,” Amit A. Dixit, an analyst at Edelweiss Financial Services Ltd., said from Mumbai, citing problems also faced by peers including ArcelorMittal. “The market will likely react to this proposal in a hugely positive way.”Earlier, Tata Steel had tried to address its position in Europe through a proposed venture with German rival Thyssenkrupp AG. But that initiative was blocked by the EU’s antitrust officials, who said allowing the deal would have reduced the number of suppliers and increased prices.In a measure of the challenge facing local mills, steel production in the EU slumped in August to the lowest since the financial crisis amid a record jump in imports. The bloc’s output dropped to 11.45 million tons that month, according to World Steel Association data. That’s the lowest level since 2009.ArcelorMittal, the world’s top steelmaker, said this month that European steel consumption will drop by up to 3% this year, the most since 2012. Austrian steelmaker Voestalpine AG has also been lowering its profit outlook as the industry downturn spreads.(Updates with details on job cuts in the Netherlands in second and sixth paragraphs.)\--With assistance from Ellen Proper and Elena Mazneva.To contact the reporters on this story: Swansy Afonso in Mumbai at safonso2@bloomberg.net;Ronojoy Mazumdar in Mumbai at rmazumdar7@bloomberg.netTo contact the editors responsible for this story: Phoebe Sedgman at psedgman2@bloomberg.net, Nicholas LarkinFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Tata Steel to cut 3,000 jobs in Europe
    Yahoo Finance UK

    Tata Steel to cut 3,000 jobs in Europe

    The move comes after the company announced the closure of its Newport plant in South Wales, with the loss of nearly 400 jobs.

  • Tata Steel faces battle with unions over plans to cut up to 3,000 European jobs
    Reuters

    Tata Steel faces battle with unions over plans to cut up to 3,000 European jobs

    AMSTERDAM/LONDON (Reuters) - Steelworkers in Britain and the Netherlands said on Tuesday they would fight Tata Steel's plans to cut up to 3,000 jobs across its European operations, as the sector wrestles with excess supply, weak demand and high costs. Indian-owned Tata announced the cuts late on Monday as part of wider efforts to boost profitability in Europe, saying around half of the losses would be in the Netherlands and around two-thirds would be office-based roles. Tata's announcement confirmed a number previously reported by Reuters.

  • Reuters - UK Focus

    UPDATE 3-Tata Steel faces battle with unions over plans to cut up to 3,000 European jobs

    AMSTERDAM/LONDON, Nov 18 (Reuters) - Steelworkers in Britain and the Netherlands said on Tuesday they would fight Tata Steel's plans to cut up to 3,000 jobs across its European operations, as the sector wrestles with excess supply, weak demand and high costs. Indian-owned Tata announced the cuts late on Monday as part of wider efforts to boost profitability in Europe, saying around half of the losses would be in the Netherlands and around two-thirds would be office-based roles.

  • Reuters - UK Focus

    REFILE-Tata Steel plans to cut jobs across European operations

    Tata Steel plans to cut jobs across its European operations as it wrestles with excess supply and high costs, the company said on Monday. Following a weekend interview in the Financial Times with the group's European chief executive, Henrik Adam, Tata confirmed it was planning to announce job cuts across the European business, which employs around 20,000 people. Indian-owned Tata Steel, which launched a transformation programme in June to strengthen its European business, has operations including steelmaking in the Netherlands and Wales and downstream operations across Europe.

  • Reuters - UK Focus

    UPDATE 4-China's Jingye Group agrees outline deal to rescue British Steel

    BEIJING/LONDON, Nov 11 (Reuters) - China's Jingye Group said on Monday it has reached a provisional deal to buy British Steel and promised to invest 1.2 billion pounds ($1.5 billion) over the next decade and save thousands of jobs. An agreement is of major political significance as Britain prepares to elect a new government on Dec. 12. The lack of opportunities in northern England, where British Steel is based, is an election issue, as the social gap between north and south widens.

  • Indian steelmakers face debt challenges after ill-timed bets
    Reuters

    Indian steelmakers face debt challenges after ill-timed bets

    MUMBAI/NEW DELHI (Reuters) - India's biggest steelmakers may be suffering from buyer's remorse as assets they bought from bankrupt rivals stretch their bottom lines while market conditions have worsened. Less than 18 months after scooping up these distressed assets in the hopes of extracting value and boosting market share, the steelmakers are struggling to meet sales and production targets because of a slowdown in the key construction and auto sectors. Tata Steel Ltd, JSW Steel Ltd and others are also wrestling with falling revenues amid high debt loads.

  • Reuters - UK Focus

    UPDATE 1-Worker dies in "incident" at Tata Steel site in south Wales

    A worker died in an incident at the Tata Steel site at Port Talbot in South Wales on Wednesday, police and the company said. "We have to report the sad news that a contractor colleague working at our Port Talbot site has died following an incident on the site today," Tata Steel Europe said on Twitter. South Wales Police said they had been called to the site shortly after 2 p.m, describing it as an isolated incident.

  • Worker dies in 'incident' at Tata Steel site in south Wales
    Reuters

    Worker dies in 'incident' at Tata Steel site in south Wales

    A worker died in an incident at the Tata Steel site at Port Talbot in South Wales on Wednesday, police and the company said. "We have to report the sad news that a contractor colleague working at our Port Talbot site has died following an incident on the site today," Tata Steel Europe said on Twitter. South Wales Police said they had been called to the site shortly after 2 p.m, describing it as an isolated incident.

  • Reuters - UK Focus

    Tata Steel reports "incident" at its site in south Wales

    Tata Steel said there had been an incident at its site in Port Talbot in South Wales on Wednesday but police said it did not represent a threat to the public. "We can confirm there has been an incident at our Port Talbot site," Tata said on Twitter. It did not give any details of what had happened but South Wales Police said it was an isolated incident.

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