Consolidated net profit of Tata Steel for the first quarter fell by more than 92% to Rs 634 cr

25 Jul 2023 , 12:57 PM

For the first quarter that ended in June, Tata Steel’s consolidated net profit decreased 92% year over year to Rs 634 crore, the company stated on Monday. In the same period last year, the company generated a profit of Rs 7,765 crore.

In the first quarter, operating revenue decreased by 6% to Rs 59,490 crore from Rs 63,430 crore in the corresponding quarter last year.

While revenues decreased 5% from the prior quarter, the reported profit was down 63% from quarter to quarter. T V Narendran will continue serving as CEO and MD for another five years as of September 19 thanks to board approval.

The shareholders of the firm must approve the re-appointment. On September 18, Narendran’s current term as CEO and MD will come to an end.

The business claimed that a non-cash deferred tax charge related to a buy-in transaction at the British Steel Pension Scheme had a negative impact on its profitability.

Consolidated EBITDA for the quarter was Rs 6,122 crore, a 59% decrease from the prior year.

During the quarter under review, India’s business’s revenues increased by a negligible 3%, reaching Rs 34,901 crore. India’s EBITDA decreased by 22% to Rs 7,514 crore. This results in a margin of 22% and an EBITDA per ton of Rs 15,651.

The ramp up at Neelanchal Ispat Nigam Ltd (NINL) was the main factor in the 2% YoY increase in crude steel production, which was roughly 5 million tonnes. delivery totalled 4.8 million tons, up 18% year over year due to an increase in domestic delivery.

The Europe division reported a £2,083 million revenue and an EBITDA loss of £153 million.

‘The planned relining of BF6 at Tata Steel Netherlands commenced in April and this has led to a drop in crude steel production,’ the firm stated in a statement.

1.79 million tonnes of liquid steel were produced in Europe, whereas 1.99 million tonnes were delivered.

‘Within barely 9 months of acquisition, NINL has started to stabilize and is operating near to rated capacity. Facilities are being phased into operation as part of the 5 MTPA development at Kalinganagar, according to Narendran, CEO and MD of Tata Steel.

During the quarter, the company invested Rs 4,089 crore in capital projects. At the conclusion of the June quarter, the group’s liquidity was at Rs 30,569 crore, while net debt stood at Rs 71,397 crore.

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