Tata Steel Q2FY23 PAT dips 87% to Rs1,514 crore as raw material costs surge 56.5% yoy amid supply chain constraints

2 Nov 2022 , 11:45 AM

Tata Steel reported flat total revenues for the September 2022 quarter on consolidated basis at Rs59,878 crore. Revenue were lower by -5.6% in sequential terms.

For Q2FY23, the core revenues from the Tata Steel India operations and the Tata Steel Europe operations were almost flat while Tata Steel Long Products showed rise in revenues.

Tata Steel board approved the amalgamation of seven listed and unlisted entities as a value accretive merger. India deliveries were up 7% yoy and 21% QOQ with EBITDA per tonne at Rs9,986. Europe deliveries were lower.

The net profits for the quarter fell sharply by 87.3% at Rs1,514 crore on a yoy basis and the profits were also lower on a sequential basis due to a sharp spike in the raw material costs in the quarter.

However, EBITDA margins stood at around 10% on standalone and consolidated basis. The biggest hit came from the spike in the price of coking coal with the Russia Ukraine war only making the supply chain situation worse in the global metal markets.

Net Margins were at 2.53% in Q2FY23 compared to 19.74% in Q2FY22 and net margins at 12.24% in Q1FY23 quarter.

Financial highlights for Sep-22 compared yoy and sequentially

	Tata Steel
Rs in Crore	Sep-22	Sep-21	YOY	Jun-22	QOQ
Total Income (Rs cr)	₹ 59,878	₹ 60,387	-0.84%	₹ 63,430	-5.60%
Net Profit (Rs cr)	₹ 1,514	₹ 11,918	-87.29%	₹ 7,765	-80.50%
Diluted EPS (Rs)	₹ 1.24	₹ 9.91		₹ 6.36
Net Margins	2.53%	19.74%		12.24%