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Tata Steel Q1 results: Net profit at ₹9,768 cr, revenue jumps 109% – Mint

India’s leading steelmaker Tata Steel on Thursday posted a consolidated net profit at 9,768 crore in the quarter ended 30 June, 2021. The steelmaker had posted a net loss of 4,648 crore in the year-ago period.

Sequentially, the steelmaker’s consolidated PAT rose 34% QoQ from 6,644.15 crore in Q4FY21.

Tata Steel’s total revenue from operations for the quarter in review jumped 109.5% to 53,372 crore as against 25,662 crore in June 2020 quarter.

The company’s domestic steel prices continue to be at a steep discount to China import parity prices, it said in a regulatory filing.

The company reported highest-ever quarterly consolidated EBITDA as it increased 13.3% QoQ and 25.7 times YoY to Rs.16,185 crore with improved realization across key entities.

Crude steel production increased by 54.8% on YoY basis, however, declined 2.6%QoQ to 4.63 mn tons, impacted by the supply of over 47,800 tons of liquid medical oxygen to hospitals during the quarter amidst the 2nd wave of COVID-19 pandemic.

Overall deliveries increased by 41.7% on YoY basis, however, declined 11%QoQ to 4.15 mn tons due to partial lockdowns announced by some of the states and temporary shutdowns in few steel-consuming sectors amidst the 2nd wave of COVID-19 pandemic. To compensate for the softness in domestic demand, exports were increased to 16% of the total sales in 1QFY22, the company further stated.

Commenting on the quarterly results, TV Narendran, Chief Executive Officer and Managing Director, Tata Steel, said, “Over the last 15 months, the global economy has been recovering driven by policy support and progressive vaccination which has led to improvement in business and customer confidence. However, Indian markets were adversely impacted again during the last quarter due to the second wave of coronavirus which impacted our steel production as well as deliveries. Demand has begun recovering in India, though domestic steel prices continue to be at a steep discount to China import parity prices.”

Tata Steel’s scrip on Thursday rose 0.52% to 1,433.6 on NSE.

 

 

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