Tata Steel on Wednesday (January 24) reported a net profit of ₹522.1 crore for the third quarter that ended December 31, 2023. In the corresponding quarter last year, Tata Steel posted a net loss of ₹2,502 crore, the company said in a regulatory filing.
The company's revenue from operations dipped 3.1% to ₹55,311.9 crore against ₹57,083.6 crore in the corresponding period of the preceding fiscal. At the operating level, EBITDA jumped 54.7% to ₹6,263.6 crore in the third quarter of this fiscal over ₹4,048 crore in the corresponding period in the previous fiscal.
The EBITDA margin stood at 11.3% in the reporting quarter compared to 7.1% in the corresponding period in the previous fiscal. EBITDA is earnings before interest, tax, depreciation, and amortisation.
Tata Steel has spent ₹4,715 crore on capital expenditure during the quarter and ₹13,357 crore for 9M of FY24. The phased commissioning of the 5 MTPA expansion at Kalinganagar has commenced.
The net debt stands at ₹77,405 crore. The group's liquidity remains strong at ₹23,349 crore, which includes cash & cash equivalents of ₹10,825 crore. India's revenues were ₹35,011 crore and were broadly stable on a quarter-on-quarter basis. The crude steel production was around 5.35 million tonne and was higher by 7% on a quarter-on-quarter as well as a year-on-year basis.
Deliveries at 4.88 million tonne were marginally higher QoQ driven by a rise in domestic deliveries (+3% quarter-on-quarter and +10% year-on-year). Broad-based improvement was witnessed across key end-use segments. EBITDA was ₹8,302 crore which translates into an EBITDA margin of 24%.
UK revenues were £603 million and EBITDA loss stood at £159 million. Liquid steel production was 0.72 million tonne while deliveries stood at 0.64 million tonne. Deliveries were lower quarter-on-quarter due to subdued demand.
Netherlands revenues were £1,239 million and EBITDA loss stood at £117 million. Liquid steel production was broadly stable at 1.19 million tonne but lower on a year-on-year basis due to the reline of one of the blast furnaces at Ijmuiden. Deliveries stood at 1.30 million tons and were up 5% quarter-on-quarter basis.
Tata Steel on January 19, announced that we will commence statutory consultation on the proposed restructuring of the UK business as part of its transition to an economically and environmentally sustainable future.
T V Narendran, chief executive officer and managing director, said Tata Steel India has delivered better margins aided by higher deliveries as well as realisations on a QoQ basis. Domestic deliveries for the quarter stood at 4.78 million tonne and were up 3% quarter-on-quarter and 10% year-on-year.
"Among the key segments, automotive and well-established brands such as Tata Tiscon, Tata Steelium, and Tata Astrum had the best 3Q sales. The consistent growth in India deliveries has been aided by crude steel production being close to 5 million tons across the quarters in this financial year," Narendran said.
The results came after the close of the market hours. Shares of
Tata Steel Ltd ended at ₹135.15, up by ₹5.05, or 3.88%, on the BSE.
(Edited by : Shoma Bhattacharjee)
First Published: Jan 24, 2024 7:30 PM IST
