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Tata Steel has reported that its consolidated net profit in the September quarter was up multi-fold to ₹12,548 crore, against ₹1,665 crore logged in the same period last year, on the back of lower base and higher realisation. Revenue from sales was up at ₹59,394 crore (₹38,249 crore).
On a sequential basis, the net profit increased 28 per cent compared to ₹9,768 crore registered in June quarter while sales jumped 13 per cent from ₹52,574 crore.
The company registered an income of ₹720 crore from sale of NatSteel Holdings. It recorded the highest-ever consolidated quarterly EBITDA of ₹17,810 crore, up seven times compared to last year.
With the NCLT approval of Tata Steel BSL merger with the parent company, Tata Steel will issue one share for every 15 share of TSBSL held by investors. This will lead to issuance of about 1.99 crore equity shares, the company said.
Standalone net
On a standalone basis, net profit was up more than three times to ₹8,708 crore against ₹2,539-crore logged in the same period last year while sequentially it was down marginally compared to ₹8,780 crore registered in June quarter. Quarterly adjusted EBITDA was up 2.3 times at ₹13,877 crore year-on-year.
Revenues at Tata Steel Europe increased 50 per cent year-on-year to £2,108 million with EBITDA per tonne of £153. Tata Steel is pursuing the hydrogen route in IJmuiden. This involves introduction of direct reduced iron technology which can make iron using natural gas or hydrogen, before it is converted to steel.
Sales up
TV Narendran, Managing Director, Tata Steel, said despite fall in demand in domestic markets the company managed to increase sales and will continue to drive value accretive growth. Sales to the auto sector was robust despite the sector being impacted by the semiconductor shortage.
The European operations have also delivered robust performance underpinned by strong improvement in realisations. The company is watchful of the elevated coal prices and high energy cost as key risks to margins going forward, he said.
“We have recently won the high quality Gandhalpada iron ore mines which helps us achieve raw material security beyond 2030,” he added.
The company has repaid debt of ₹11,424 crore in the first half of this fiscal and reduced gross debt to ₹78,163 crore. It spent ₹2,191 crore in ongoing expansion at Kalinganagar in Odisha.
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