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.

Related Topics
comment COMMENT NOW