On Tuesday, Tata Steel reported a consolidated net profit of ₹3,989 crore for the quarter end December. The steel major posted a consolidated net loss of ₹1,228.53 crore for the corresponding quarter last year. The revenue rose 11% year-on-year to ₹39,594 crore for the quarter under review.
In this quarter Tata Steel witnessed the highest ever quarterly consolidated operating profit of ₹9,540 crore and 78% rise in EBITDA to ₹6,737 crores. “Tata Steel’s India business achieved the highest ever quarterly EBITDA of ₹8,811 crores; driven by higher prices, better product mix, lower exports and operating efficiency initiatives,” the company said in the regulatory filing.
Koushik Chatterjee, executive director and chief financial officer said, “Continuing with the recovery from the deep impact of the pandemic in the first quarter of the financial year, Tata Steel has delivered one of the best financial performance during this quarter with the highest ever consolidated EBITDA of Rs.9,540 crores and free cash flows of over ₹12,000 crore on the back of strong underlying operating performance of the India business, sharp focus on capital allocation and working capital management.”
Tata Steel is committed to arrive at a strategic and sustainable resolution for its European portfolio, the company said. “Tata Steel’s IJmuiden plant is among the most environmentally efficient and cost competitive steel producers in Europe. The process to separate Tata Steel Netherlands and Tata Steel UK is currently underway,” it added.
“This has significantly improved the credit metrics of the company. Our cash flow generation remains strong and in addition to the deleveraging in the first nine months, we will further reduce the gross debt by more than ₹12,000 crore in the fourth quarter of the current financial year,” CFO added.
Commenting on the Q3FY21 performance, T V Narendran, chief executive officer and managing director said, “The recovery in the global and Indian economy has led to sharp improvement in steel demand in India. We pivoted our deliveries to domestic markets, to cater to the requirements of our local customers by reducing exports.”
“All the segments, especially automotive, have performed extremely well supported by our continuous focus on strong customer relationships, superior distribution network, brands and new product developments. We are also making good progress on our various initiatives to de-risk the business while our digital marketing platforms are helping us reach new markets and be future ready,” he added.