Tata Steel posts Q1 profit of Rs 9,768 crore

Tata Steel posted a consolidated net profit of Rs 9,768.34 crore for June quarter 2021-22. In the year-ago period, the company incurred a net loss of Rs 4,648.13 crore, Tata Steel said in a BSE filing.

Total income soared to Rs 53,534.04 crore during the quarter under review from Rs 25,662.43 crore a year ago. Expenses were at Rs 41,397.23 crore as against Rs 29,116.37 crore in April-June a year ago.

In a statement, CEO and Managing Director T V Narendran said Indian markets were adversely impacted during the last quarter due to the second wave of COVID-19 which impacted the company’s steel production as well as deliveries.

Steel demand has begun recovering in India, though domestic steel prices continue to be at a steep discount to China import parity prices. “We continue to focus on our objective to attain and retain market leadership in chosen segments by building strong customer relationships, superior distribution network, rolling out brands and developing new products & solutions in steel and new materials. We are also focused on value accretive growth,” he said.

The phase II expansion at the company’s plant in Kalinganagar is progressing well. It will drive product mix enrichment and cost reduction, further strengthening Tata Steel’s competitive position, Narendran said.

Koushik Chatterjee, Executive Director and Chief Financial Officer said: “Our consolidated financial performance for the quarter was exceptionally strong on the back of strong underlying business performance and buoyant market conditions. The company has achieved the highest ever quarterly consolidated EBITDA of Rs 16,185 crore…”

Despite the increase in working capital due to higher prices of both steel and raw material, the company generated consolidated free cash flow of over Rs 3,500 crore during this quarter and made debt repayments of Rs 5,894 crore, he said. According to the statement, the company’s consolidated steel production rose to 7.88 million tonnes (MT) during the quarter from 5.54 MT in the year-ago quarter. The deliveries were at 7.11 MT compared to 5.34 MT a year ago.

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