MUMBAI: Tata Steel today reported a consolidated net profit of Rs. 9,768 crore for the quarter ended June as against a net loss of Rs. 4,648 crore in the year-ago quarter. Analysts had expected the company to report a consolidated net profit of Rs. 9,306 crore.
The country’s largest steelmaker reported a 109.5 per cent year-on-year growth in consolidated total revenue from operations to Rs. 53,371.8 crore for the reported quarter, which was slightly above analysts’ expectations.
Even on a sequential basis, the company posted strong results suggesting a minimal impact of the second wave of the COVID-19 pandemic. Tata Steel’s consolidated net profit jumped 36.4 per cent sequentially, while its topline grew 7 per cent on-quarter.
The sales performance in India operations were largely flat on-quarter but more than double on a year-on-year basis to Rs. 30,344 crore in the June quarter.
However, the highlight of the quarter for the company remained its operating profit as the company reported another quarter of record-high consolidated operating profit. Tata Steel’s consolidated operating profit jumped 25.7 times on-year to Rs. 16,185 crore reflecting the benefit of price hikes that the company has taken during the quarter and previous quarters.
In India, the company’s operating profit per tonne soared 576 per cent year-on-year to Rs. 33,604. On a sequential basis, India operating profit per tonne climbed 28 per cent.
European business also had an improved quarter, and the impact from rising steel spreads is expected to positively benefit in the coming quarters, said Chief Financial Officer Koushik Chatterjee.
Chatterjee said that the company was able to generate a consolidated free cash flow of Rs. 3,500 crore during the quarter and made debt repayments t the tune of Rs. 5,894 crore. “We are committed to deleverage further and expect to bring down the debt significantly by the end of the current financial year. We continue to prioritize Capex spend on ongoing projects and strategically essential investments,” Chatterjee said.
Tata Steel said it spent Rs.2,011 crore on capital expenditure during the quarter with work on the pellet plant, the cold roll mill complex and the 5 million tonne per annum expansion at Kalinganagar on track.
The steelmaker’s gross debt decreased to Rs.84,237 crore during the quarter ended June and net debt fell to Rs. 73,973 crore.
Shares of Tata Steel ended 0.5 per cent higher at Rs. 1,433.7 on the National Stock Exchange.
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