Tata Steel on Friday announced a consolidated net profit of ₹9,572 crore for the third quarter in the current fiscal. This is a rise of approximately 159% from ₹3,697 crore in quarter 2 of the fiscal.
The steel king’s profit from operations rose 45% to ₹60,783 crore for the duration under review as against the ₹41,935 crore in the year-ago duration. However, revenues were largely stable as growth in net realisations more than offset the dip in volumes. The firm witnessed consolidated EBITDA (earnings before interest, tax, depreciation and amortisation) at ₹15,853 crore in the third quarter.
However, Tata Steel CEO and MD T V Narendran said, “India steel demand has begun to improve on the back of continued economic recovery as the third wave of Covid begins to ebb”. He further explained that Tata steels delivery in India enhanced by 4% till now in the last fiscal along with a growth in product mix.
He also added that the steel-giant will continue to drive value accretive increase in its chosen segments and outperformance in crucial segments like auto was robust even after the sector was affected by the semiconductor shortage.
In terms of trade in India, crude steel generation heightened up by 2% quarter-on-quarter and 4% year-on-year to 4.81 million tons. However, domestic deliveries surged by 2% consecutively. Sales volume to the automotive segment continued to be constant quarter-on-quarter even after 9% drop in auto OEM production because of semiconductor shortages.
However, the Europe trade revenues rose by 7% quarter-on-quarter and 56% year-on-year to £2,246 million in the last quarter. EBITDA was £290 million which gets to an EBITDA per ton of £134. Narendran told that the company’s European operations went on to perform underpinned by sharp growth in realizations.
Meanwhile, during the quarter, the consolidated free cash cycle was ₹6,338 crore even after a rise in working capital of ₹2,045 crore.