India’s leading steelmaker Tata Steel on Monday posted a 12.83% decline in consolidated net profit of ₹7,764.96 crore for the quarter ending 30 June, 2022. The steelmaker had posted a registered a PAT of ₹8,907 crore during the corresponding period last year.
On a sequential basis, the PAT witnessed a decline of 20.4% from ₹9,756 crore achieved during the January – March quarter.
Revenue from the operations of the Tata Group’s steel manufacturing arm increased 18.6% YoY to ₹63,430 crore in Q1FY23 from ₹53,465 crore in the year-ago period.
On a sequential basis, the consolidated revenues have declined 8.5% from ₹69,324 crore during the previous quarter.
Consolidated EBITDA came at ₹15,047 crore. On QoQ basis, the EBITDA margin has improved to 24% while EBITDA per ton increased by ₹3,780 to ₹22,717.
“This has been a challenging quarter for the Global and Indian economy with rising interest rates, supply chain constraints and slowdown in China due to COVID. Despite these multiple headwinds, Tata Steel has delivered a strong performance with an improvement in margins,” Tata Steel CEO & MD TV Narendran said.
He further said, “Our strong marketing franchise and superior business model in India enabled us to successfully pivot and increase our domestic deliveries to counter the 15% duty imposed on steel exports in the middle of the quarter.”
“We continue to drive value accretive growth in India backed by investments in customer relationships, brands and distribution networks and remain well positioned to benefit from the buoyant automotive & retail housing demand and the government spend on infrastructure,” the top official said.
He also said, “Our European business delivered a sharp improvement in performance as long term contracts and product mix helped drive a strong increase in realizations.”
“We are geared towards commissioning the 6 MTPA pellet plant at Kalinganagar in 3QFY23 which will drive cost savings followed by the CRM complex and the 5 MTPA expansion project,” Narendran said.
He added, “Our subsidiary, Tata Steel Long Products, has completed the strategic acquisition of Neelachal Ispat Nigam Limited and will drive growth of our long products business. We continue to progress on our sustainability journey and are committed to being net zero by 2045. We are also focused on making Tata Steel more diverse & inclusive and were ranked 3rd among manufacturing companies by Great Place to Work in India.”
As per a poll of brokerages, including Motilal Oswal Financial Services, Kotak Institutional Equities and ICICI Securities, the Tata Group firm was expected to report a PAT of ₹6,000 – 7,200 crore on consolidated revenues of ₹59,300 – 61,700 crore.
Tata Steel share price rose 3.06% to close at ₹964.70 apiece on the NSE today.
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