Tata Steel Q1FY23 PAT lower by -12.82% at Rs7,765 crore on higher operating costs in the quarter

26 Jul 2022 , 10:07 AM

Tata Steel Ltd, reported 18.79% growth in sales revenues yoy for the Q1FY23 quarter on consolidated basis at Rs63,128 crore. On a sequential basis, revenues were lower for the quarter by -8.12%.

For Q1FY23, Tata Steel saw robust growth in top line across its India operations as well as its European operations. Debt servicing pressure is visible from the fact that the debt service coverage ratio has come down, although the interest coverage has gone up over last year.

The 6 MTPA pellet plant at Kalinganagar will be commissioned in the third quarter of this fiscal while the 5MTPA expansion will follow that.

The consolidated net profit for Q1FY23 was down -12.82% yoy at Rs7,765 crore while it was down on a sequential basis by -20.41%.

For the quarter, the EBITDA stood at Rs15,047 crore while EBITDA margins stood at 24%. EBITDA per tonne increased to Rs22,717. India steel business saw moderation in exports after the government had imposed export levies.

The European steel operations achieved the highest ever EBITDA of £290 per tonne during the June 2022 quarter. Net margins were 12.30% in Q1FY23 quarter compared to 16.76% in Q1FY22. NPM was lower as compared to 14.20% in Q4FY22.

Financial highlights for Jun-22 compared yoy and sequentially

	Tata Steel
Rs in Crore	Jun-22	Jun-21	YOY	Mar-22	QOQ
Total Income (Rs cr)	₹ 63,128.32	₹ 53,142.22	18.79%	₹ 68,710.60	-8.12%
Net Profit (Rs cr)	₹ 7,764.96	₹ 8,906.95	-12.82%	₹ 9,756.20	-20.41%
Diluted EPS (Rs)	₹ 63.57	₹ 74.13		₹ 79.88
Net Margins	12.30%	16.76%		14.20%