Q1 Results: Tata Steel Net Profit Slumps 13% YoY To Rs 7,764 Cr
Tata Steel on Monday released its financial results for the quarter ended June 30, 2022 and reported a 12.83% year-on-year (YoY) decline in its consolidated net profit at Rs 7,764 crore compared to Rs 8,906 crore in the same quarter last year.
Its revenue from operations grew 18.84 per cent YoY to Rs 63,430 crore in the quarter under review compared to Rs 53,372 crore in the year ago quarter.
Consolidated EBITDA came at Rs 15,047 crore. On quarter-on-quarter (QoQ) basis, the EBITDA margin has improved to 24 per cent while EBITDA per ton increased by Rs 3,780 to Rs 22,717.
“This has been a challenging quarter for the Global and Indian economy with rising interest rates, supply chain constraints and slowdown in China due to COVID. Despite these multiple headwinds, Tata Steel has delivered a strong performance with an improvement in margins. Our strong marketing franchise and superior business model in India enabled us to successfully pivot and increase our domestic deliveries to counter the 15 per cent duty imposed on steel exports in the middle of the quarter,” said T V Narendran, CEO & MD Tata Steel.
“We continue to drive value accretive growth in India backed by investments in customer relationships, brands and distribution networks and remain well positioned to benefit from the buoyant automotive & retail housing demand and the government spend on infrastructure,” added Narendran.
The company stated that from its Europe operations, its revenue per ton increased by £154 QoQ to £1,248 per ton due to long term contracts and product mix.
The company also achieved its highest ever quarterly EBITDA at £621 million, which translates to an EBITDA per ton of £290, the company said in an exchange filing.
“Our European business delivered a sharp improvement in performance as long term contracts and product mix helped drive a strong increase in realizations. We are geared towards commissioning the 6 MTPA pellet plant at Kalinganagar in 3QFY23 which will drive cost savings followed by the CRM complex and the 5 MTPA expansion project,” said Narendran.
Tata Steel shares ended 2.66 per cent higher at Rs 960.90. The results were announced after the market closed for the day.
