Companies

Tata Steel Q3 profit jumps 54% to ₹1,753 cr

Our Bureau Mumbai | Updated on February 08, 2019 Published on February 08, 2019

T V Narendran

Buoyed by higher realisation, lower base

Tata Steel reported a 54 per cent increase in December quarter consolidated net profit at ₹1,753 crore, against ₹1,136 crore in the same quarter last year, due to higher realisation and lower base.

Turnover was up 23 per cent at ₹41,220 crore (₹33,447 crore). Consolidated Ebitda (Earnings before interest, tax, depreciation and amortisation) per tonne was up at ₹10,331 against ₹8,638 registered last year. The company registered deferred tax of ₹288 crore and profit from asset sale of ₹167 crore during the quarter.

On a standalone basis, net profit was up 84 per cent at ₹2,456 crore against ₹1,338 crore logged last year while turnover increased to ₹17,174 crore (₹15,596 crore).

Standalone Ebitda per tonne was up at ₹16,404 (₹14,283).

Tata Steel BSL (formerly Bhushan Steel) logged lower Ebitda of ₹1,008 crore (₹1,177 crore) even as Ebitda per tonne was up at ₹10,992 (₹10,334).

Sales volumes at Tata Steel BSL were affected due to softer demand in the automotive and appliance segments. The company had completed long-term financing of ₹15,500 crore and reduced gross debt by ₹2,000 crore.

Gross debt reduced

Tata Steel’s gross debt declined by ₹9,083 crore to ₹1,09,597 crore, and will come down further by $500 million with its planned South-East Asia unit divestment. Its net debt was at ₹1,01,048 crore.

The company sees softening demand in India and a slowing global economy — amidst concerns over tightening financial markets and trade war escalation — as major threats to the steel sector. Brexit is also expected to have an adverse impact on the company’s European subsidiaries.

TV Narendran, Managing Director, Tata Steel, said despite a sharp drop in international steel prices, the company was able to maintain realisation and increase volumes in India.

“We have announced a divestment of the South-East Asian business and continue to work on exploring similar opportunities across the portfolio,” he said.

Published on February 08, 2019
This article is closed for comments.
Please Email the Editor