India’s top steelmaker Tata Steel on Monday posted a 12.83% drop in consolidated net profit. Rp7,764.96 crore for the quarter ended 30 June 2022. The steel maker has registered a PAT Rp8,907 crore during the same period last year.

Sequentially, PAT decreased by 20.4%. Rp9,756 crore was achieved during the January – March quarter.

Revenue from the Tata Group’s steel manufacturing operations increased 18.6% YoY to Rp63,430 crore in Q1FY23 of Rp53,465 crore in the last year period.

Sequentially, consolidated revenue has decreased by 8.5%. Rp69,324 crore during the previous quarter.

Consolidated EBITDA achieved Rp15,047 crores. On a QoQ basis, EBITDA margin increased to 24% while EBITDA per tonne increased by Rp3,780 to Rp22,717.

“It’s been a challenging quarter for the Global and Indian economies with rising interest rates, supply chain constraints and a slowdown in China due to COVID. Despite these obstacles, Tata Steel has delivered a strong performance with improved margins,” said Tata Steel & MD TV CEO Narendran.

He further said, “Our strong marketing franchise and superior business model in India enabled us to successfully pivot and increase our domestic shipments to offset the 15% duty imposed on steel exports in the middle of the quarter.”

“We continue to drive value accretion growth in India supported by investments in customer relations, brands and distribution network and remain well positioned to benefit from high residential, automotive & retail demand as well as government spending on infrastructure,” said the senior official. the.

He also said, “Our European business delivered a sharp increase in performance as long-term contracts and product mix helped to drive strong realization increases.”

“We are getting ready to commission a 6 MTPA pellet plant at Kalinganagar in 3QFY23 which will drive cost savings followed by a CRM complex and a 5 MTPA expansion project,” said Narendran.

He added, “Our subsidiary, Tata Steel Long Products, has completed the strategic acquisition of Neelachal Ispat Nigam Limited and will drive the growth of our long-term product business. We are continuing our sustainability journey and are committed to being net zero by 2045. We are also focused to make Tata Steel more diverse & inclusive and ranked 3rd among manufacturing companies by Great Place to Work in India.”

As per a poll of brokers, including Motilal Oswal Financial Services, Kotak Institutional Equities and ICICI Securities, Tata Group companies are expected to report PATs from Rp6,000 – 7,200 crore of consolidated revenue Rp59,300 – 61,700 crores.

Tata Steel’s share price rose 3.06% to close at Rp964.70 each on the NSE today.

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