Companies

Tata Steel logs Q1 profit of ₹9,768 cr on higher sales, better realisation

Our Bureau Mumbai | Updated on August 12, 2021

TV Narendran, MD

Second Covid wave impacts production

Tata Steel has reported a consolidated net profit of ₹9,768 crore in June quarter against a loss of ₹4,628 crore logged in the same period last year, on the back of higher sales and better realisation.

The net profit in the quarter is much higher than the full year profit of last fiscal.

Turnover in the quarter under review doubled to ₹53,372 crore (₹25,475 crore). Ebitda per tonne increased multi-fold to ₹22,779 crore (₹1,181 crore).

Sales volume increased 33 per cent year-on-year to 7.11 million tonne (5.34 mt) while it declined when compared to 7.83 mt registered in the March quarter.

Output hit

Production was also impacted due to the supply of over 47,800 tonne of liquid medical oxygen to hospitals during the quarter amid second Covid wave.

The company spent ₹2,011 crore in capex during the quarter. Gross debt decreased to ₹84,237 crore with debt repayment of ₹5,894 crore while net debt declined to ₹73,973 crore.

On a standalone basis, net profit zoomed to ₹9,593 crore against ₹411 crore logged in the same period previous year, on sales of ₹30,344 crore (₹12,689 crore).

It registered the highest-ever Ebitda of ₹10,274 crore with eight times increase on year-on-year basis.

Tata Steel BSL (formerly Bhushan Steel) registered its highest ever quarterly Ebitda of ₹3,118 crore while Tata Steel Long Products also registered its highest ever quarterly Ebitda of ₹554 crore.

Covid impact

TV Narendran, Managing Director, Tata Steel, said though global economy has been recovering for last 15 months, Indian markets were adversely impacted again during the last quarter due to the second wave of Covid which impacted steel production and sales.

However, demand has begun recovering in India, though domestic steel prices continue to be at a steep discount to China import parity prices.

“We have accelerated capex allocation for the six mtpa pellet plant and the cold roll mill complex, which are expected to be commissioned in the first half next year,” he added.

Published on August 12, 2021

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