Tata Steel limited on February 4 reported a net profit of9,979 crore, for the third quarter ended December 2021, up 159 percent from Rs 3,997 crore reported a year ago. The company had recorded a post-tax profit of Rs 11,918 crore in the previous quarter. Profitable revenues for the largest private sector steelmaker in the country fixed at Rs 60,783 crore, up 45 percent from Rs 41,935 crore reported in the same period a one year-ago. Revenues in the preceding quarter stood at Rs 70,387 crore. India steel demand has started to improve on the back of continued economic recovery as 3rd wave of COVID begins to ebb. “Our steel deliveries in India expanded by 4 percent in the first nine months of the financial year along with an improvement in product mix”, said by Chief Executive Officer & Managing Director said while commenting on the performance for the quarter. “We continue to drive value accretive growth in our chosen segments and our performance in key segments such as auto was robust despite the sector being impacted by the semiconductor shortage”, he added. The European operations of the company continue to perform better by strong improvement in nation economic growth.
“The company produced 7.90 million tons (MT) of steel during the quarter which was best compared 7.77 MT produced in the previous quarter and marginally higher compared to 7.74 MT produced in the same period a year ago.” Sales volume during the quarter decreased both on the yearly as well as repeated basis. The company sold 7.09 MT of steel during the quarter which is a higher of 5.4 percent on year compared to 7.41 MT sold in the same period a last year. Compared to the previous quarter, the decline is 5.1 percent from 7.39 MT. The consolidated revenues for the quarter were stable compared to the previous quarter as the higher in volumes was more than offset by better net realizations.
“Tata Steel wanted to deliver strong operating and financial performance in 3QFY22 with year on year EBIDTA growth of 64 percent and Profit after Tax growth of 159 percent”, said by, Executive Director and Chief Financial Officer said while commenting on the performance for the quarter. “The company posted strong operating cash flows in the quarter despite a significant surge in international coal prices and increased working capital requirements”, he added.
Consolidated EBITDA (earnings before interest, tax, depreciation and amortization) stood at Rs 15,853 crore for the quarter, which was higher by 64 percent from Rs 9,652 crore reported in the same period a year ago. On this basis, consolidated EBITDA inclined by 5 percent from Rs 16,918 crore. The company achieved a consolidated EBITDA per ton of Rs 23,663/ton compared to Rs 24,112/ton achieved during the last year quarterly results.