Mumbai (Maharashtra) [India], July 25 (ANI): Tata Steel Limited reported a consolidated net profit of Rs 7,765 crore for the first quarter of the current financial year, a decrease of 12.8% from Rs 8,907 crore in the same period of the last year. On a sequential basis, the company’s profit after tax decreased by 20.4%. During the January-March 2022 quarter, Tata Steel’s profit stood at Rs 9,756 crore. Its consolidated EBITDA for the quarter ended June 30 was Rs 15,047 crores, with an EBITDA margin of 24%. The EBITDA per ton increased by Rs 3,780 to Rs 22,717.
Commenting on the financial results, T V Narendran, Chief Executive Officer & Managing Director, Tata Steel, said, “This has been a challenging quarter for the global and Indian economy with rising interest rates, supply chain constraints and a slowdown in China due to COVID. Despite these multiple headwinds, Tata Steel has delivered a strong performance with an improvement in margins.” He also stated that the company pivoted to increase its domestic deliveries due to the 15% duty imposed on steel exports in the middle of the quarter.
According to Narendran, the company aims to commission the 6 MTPA pellet plant at Kalinganagar in the third quarter of the current financial year, which will result in cost savings followed by the CRM complex and the 5 MTPA expansion project. Koushik Chatterjee, Executive Director and Chief Financial Officer, Tata Steel, said that Tata Steel has performed operationally and financially despite the complex operating environment, sudden impact of regulatory changes and the heightened volatility in commodity prices. The Consolidated revenues for the quarter stood at Rs 63,430 crores and the consolidated PAT for the quarter was Rs 7,714 crore.
Chatterjee said that the volatility in terms of steel price and input cost movement is expected to continue in the next quarter, but he anticipates the spreads to stabilise in the second half of the year. They spent Rs 2,725 crore on capital expenditure in line with their annual capex guidance as they progress on their Kalinganagar expansion. He also said that the volatility in commodity prices and immediate effect of the export duty in India have led to an increase in working capital, but their cost improvement and other initiatives, along with the expected increase in demand in the second half of the year, should result in normalisation of working capital. (ANI)