Tata Steel's Q2 net profit falls by 87.3% to Rs 1,514 crore

1 Nov 2022 , 09:42 AM

Due to falling margins, Tata Steel reported a consolidated net profit of Rs 1,514.42 crore in the July to September quarter (Q2FY23), a decrease of 87.3%. Net profit for the same period a year ago was Rs11,918.11 crore.

Operations revenue decreased slightly from the same quarter last year, falling from Rs60,387.13 crore to Rs59,877.52 crore. While revenues exceeded projections, earnings fell short of forecasts. Revenues were estimated by Bloomberg to be Rs56,321.5 crore and net income to be Rs3,154.7 crore.

Revenues decreased 5.6% sequentially, and net profit decreased by 80.49%. Concerns about the downturn in important economies, ongoing geopolitical challenges, along with seasonal variables, according to T V Narendran, chief executive officer and managing director of Tata Steel, have created a volatile operating environment.

Despite these obstacles, “Tata Steel reported best-ever domestic sales in India,” he said. This was made possible by a robust product line and a wide distribution network that can meet all needs in specific market groups.

However, a decline in realizations and expensive raw materials negated it.

Deliveries from European operations decreased on a quarter-over-quarter basis, in part because of seasonal effects and weak demand across the continent. With a £2,307 million revenue and a £199 million Ebitda, that amounts to an Ebitda of £106 per tonne. Gross debt increased to Rs87,516 crore in the third quarter from Rs 82,597 crore in the second.

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