Tata Steel Ltd.’s first-quarter profit surged on higher steel prices, a decline in finance costs and depreciation, and lower other operating expenses.
The steelmaker’s consolidated net profit rose 34.1% over the preceding quarter to Rs 8,906.9 crore in the three months through June, the steelmaker said in its exchange filing. That’s in line with the Rs 8,518-crore consensus estimate of analysts tracked by Bloomberg.
Revenue rose 6.8% sequentially to Rs 53,371.8 crore, driven by higher prices of hot-rolled coil steel. Analysts had estimated Rs 52,304.5 crore. The revenue improved across key entities (except Tata Steel standalone).
Operating profit rose 13.6% sequentially to Rs 16,110.5 crore, the company said, on higher realisation. Analysts estimated Rs 16,051.1 crore. The increase came despite a rise in raw material cost and higher employee expenses.
Tata Steel’s consolidated sales volumes fell to 7.1 million tonnes as compared to 7.83 million tonnes in the preceding quarter.
Consolidated Ebitda per tonne stood at Rs 22,779 compared with Rs 18,253 for the quarter ended June.