 "Tata Steel")
Tata Steel on Tuesday posted a consolidated net profit of Rs 1,705 crore for the March quarter. This is an 83 per cent decline from Rs 9,756 crore a year ago, the company said in a regulatory filing.
The company's consolidated total revenue from operations fall more than 9% to Rs 62,962 crore against Rs 69,323 crore in the same quarter of last year.
The Tata Steel board has declared a dividend of Rs 3.60 per equity share.
The company has spent Rs 4,396 crores on capital expenditure during the quarter and Rs 14,142 crore for the full year. Work on 5 MTPA expansion at Kalinganagar and setting up an EAF mill of 0.75 MTPA in Punjab is progressing.
The company’s net debt decreased by Rs 3,900 crore to Rs 67,810 crore and liquidity remains strong at Rs 28,688 crore. Net debt to EBITDA was 2.07x.
"In Europe, margins were broadly similar on a QoQ (quarter-on-quarter) basis as improvement in costs was offset by drop in revenues," Tata Steel said in a statement.
Falling steel prices and rising coking-coal costs have squeezed the industry's profits since the first quarter of last fiscal year. Tata Steel reported a 6% increase in the cost of raw materials consumed.
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Delivery volumes in Europe fell over 11%, but inched up 0.6% in India, the company said last month.
Tata Steel is the first among the major steel players to report quarterly earnings. Rival JSW Steel will report results on May 19.
“FY2023 saw our India crude steel production growing to around 19.9 million tons, with a 65% share of our overall volumes. Deliveries were in line with production with domestic deliveries growing 11 per cent YoY and driving product mix improvement,” said T V Narendran, chief executive officer & managing director of Tata Steel.
“The quarter also saw strong momentum with deliveries growing by 9 per cent QoQ to 5.15 million tons. We have multiple projects ongoing at various locations in India as we work towards 40 MTPA by 2030. The phased commissioning of our expansion at Kalinganagar continues with FHCR coils now being produced at the CRM complex. Within 9 months of acquisition, we have successfully ramped up Neelachal Ispat Nigam Limited to Rs 1 million tons on annualised basis. We have also progressed on our plans to set up our first EAF mill in Punjab. During the quarter, Europe deliveries were up 9 per cent QoQ. The Cold Mill upgrade at Ijmuiden is progressing and we have commenced the relining of BF6 in early April,” he added.
