Major steel mill Tata Steel on Monday reported consolidated profit after tax (PAT). Rp1,514 crore for the quarter ending September 2022 due to higher costs and weak operating performance amidst the global economic slowdown. PAT is lower by 87% compared to the profit of Rp11,918 crore was recorded during the same quarter last year.

Sequentially, PAT decreased by 80%. Rp7,764.96 crore was reached during April – June quarter.

Analysts expect a PAT for Tata Steel to exist Rp3,000 crore, and consolidated revenue of approx Rp56,900 crores.

The country’s top steelmaker’s earnings from operations fell 0.8% to Rp59,877.52 crore for the period under review compared to Rp60,387.13 crore in the last year period.

The company’s adjusted consolidated EBITDA (earnings before interest, taxes, depreciation and amortization) fell 62% year-over-year Rp6,060.4 crores.

“Concerns about a major economic slowdown, lingering geopolitical issues coupled with seasonal factors lead to a volatile operating environment. Despite these challenges, Tata Steel posted best-ever domestic sales in India backed by a strong product portfolio and extensive distribution network. ending with the final requirement service in the selected segment,” said TV Narendran, CEO and MD of Tata Steel.

“The utilization of high-cost raw material and steel inventories has coincided with a decline in realization resulting in reduced margins across geographies,” said Chief Financial Officer Koushik Chatterjee.

Tata Steel’s board has approved a proposal to merge seven listed and unlisted entities into Tata Steel, a combination of increasing value with multiple advantages, the company said in its BSE filing.

Meanwhile, rival JSW Steel posted a surprise quarterly loss earlier this month as metal prices slumped, saying that the imposition of export duties on finished steel products in May had made overseas shipments unattractive.

On Monday, ahead of the results, shares of Tata Steel closed 0.49% lower Rp101.10 each on the NSE. Tata Group shares have been falling for the last 2 sessions. Large cap stocks have lost 23.29% on year and fell 9.13% in 2022.

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