Tata Steel reported net profit of ₹232 core in the December quarter on the back of higher production and better realisation. The company recorded a net loss of ₹2,748 crore in the same period last year.

Income was up 14 per cent at ₹29,392 crore (₹25,767 crore).

The board of directors approved the appointment of N Chandrasekaran as Chairman.

Sales volume improved five per cent to 6.11 million tonnes (5.81 mt) as sales on standalone basis increased 27 per cent at 2.99 mt (2.35 mt).

EBITDA on consolidated basis was up by over four times at ₹3,550 crore (₹842 crore), while on standalone basis it more than doubled to ₹3,393 crore (₹1,618 crore).

The recently commissioned Kalinganagar plant produced 1.5 mt of hot metal and one mt of hot rolled coil since its commissioning in May 2016.

Despite the impact of demonetisation, branded product sales volume grew by 13 per cent and that of automotive was up 20 per cent.

Industrial Products, Projects and Exports vertical witnessed 47 per cent growth.

TV Narendran, Managing Director, said the strength of the company's franchise helped counter the head-winds due to high value currency demonetisation while the broader market was affected by lower rural sales and adverse consumer sentiments.

The focus on cost savings and integrated operations reduced the impact of rising raw material prices, he added.

Koushik Chatterjee, Group Executive Director said the European operations turned positive by registering an EBITDA margin growth of 5 per cent against loss of 6 per cent, despite the December quarter being considered as seasonally weak in Europe.

While there were challenges on the working capital due to increase in both raw material and finished good prices especially in Europe, the company was able to contain overall debt at previous year level.

Tata Steel gross debt was stable at ₹84,752 crore as of December quarter, while net debt was at ₹76,680 crore.

The company’s scrip was up 0.14 per cent at ₹473 on Tuesday.

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