Tata Steel advances after Q3 PAT grows 139% YoY to Rs 9,598 cr

7 Feb 2022 , 09:39 AM

Consolidated profit before tax (PBT) grew 117.5% to Rs 12,165.58 crore in Q3 FY22 from Rs 5,593.19 crore in Q3 FY21. Exceptional loss surged 25.32% to Rs 193 crore in Q3 FY22 as against Rs 154 crore in Q3 FY21.

Production numbers rose 0.25% to 7.76 million tonnes in Q3 December 2021 as compared to 7.74 million tonnes in Q3 December 2020. Deliveries fell 5.39% to 7.01 million tonnes in Q3 FY22 over 7.41 million tonnes in Q3 FY21.

Reported EBITDA grew 64.24% to Rs 15,853 crore in Q3 December 2021 from Rs 9,652 crore in Q3 December 2020. Adjusted EBITDA climbed 89.30% to Rs 15,890 crore in Q3 FY22 as against Rs 8,394 crore in Q3 FY21.

Consolidated free cash flow stood at Rs 6,338 crore during Q3 FY22 despite an increase in working capital of Rs 2,045 crore. On 9M FY22 basis, Tata Steel generated free cash flow of Rs 13,214 crore. The company has spent Rs 2,790 crore on capex during the quarter. The work on the pellet plant, the cold roll mill complex and the 5 MTPA (million tonnes per annum) expansion at Kalinganagar is ongoing.

Gross debt decreased to Rs 72,603 crore with repayments of Rs 17,376 crore in 9M FY22. Net debt declined to Rs 62,869 crore. Net debt to EBITDA improved to below 1 while net debt to equity improved to 0.68x. Meanwhile, Tata Steel Long Products, a subsidiary of Tata Steel, has been announced as the winner of the bidding process to acquire 93.71% stake in the 1 million ton per annum Neelachal Ispat Nigam.

In India, crude steel production increased by 2% Q-o-Q and 4% Y-o-Y to 4.81 million tonnes. Domestic deliveries increased by 2% Q-o-Q. Sales volume to Automotive segment remained steady Q-o-Q despite 9% drop in Auto OEM production due to semiconductor shortages. Further the company said that the merger of Tata Steel BSL with Tata Steel was completed.

T V Narendran, the chief executive officer (CEO) and managing director (MD) of Tata Steel, said, India steel demand has begun 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% in the first nine months of the financial year along with an improvement in product mix. 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. Our European operations continue to perform underpinned by strong improvement in realizations.

We continue to progress on our stated goals. We became the first company in the world to conduct trials to inject Coal Bed Methane gas into a Blast Furnace in a bid to reduce emissions. Our 5 MTPA TSK phase II expansion including the pellet plant and CRM complex is progressing well. Tata Steel Long Products has been declared the winning bidder for Neelachal Ispat Nigam. This will enable us to significantly ramp up our Long products portfolio and benefit from the growth in infrastructure in India and retail housing growth in semi urban India. We will leverage our retail brands and pan India distribution network to drive scale, profitability and cashflows.

Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum.

Powered by Capital Market – Live News