Domestic steel major Tata Steel on Monday posted a 21 per cent fall in its consolidated net profit to Rs 7,714 crore for the April-June quarter due to higher costs of materials and finance costs.
The company had reported a net profit of Rs 9,768 crore in the same period of 2021-22, the company said in regulatory filing.
Total income of the company was at Rs 63,698.15 crore in April-June this year against Rs 53,627.66 crore in April-June of the preceding fiscal.
Its expenses including the cost of materials consumed and the finance cost, increased to Rs 51,912.17 crore from Rs 41,490.85 crore in the year-ago quarter.
In a separate statement, the company said its consolidated steel production was at 7.74 million tonne (MT) in the first quarter of FY23, down 1.77 per cent from 7.88 MT in the same quarter a year ago.
The company’s sales also fell to 6.62 MT in teh quarter from 7.11 MT in April-June FY22.
Tata Steel CEO and MD T V Narendran said April-June has been a challenging quarter for the global and Indian economy with rising interest rates, supply chain constraints and slowdown in China due to COVID-19.
“We continue to drive value accretive growth in India backed by investments in customer relationships, brands and distribution networks and remain well positioned to benefit from the buoyant automotive & retail housing demand and the government spend on infrastructure,” he said.
The European business delivered a sharp improvement in performance as long term contracts and product mix helped drive a strong increase in realizations, Narendran said.
Koushik Chatterjee, Executive Director and Chief Financial Officer said, “Our consolidated revenues for the quarter stood at Rs 63,430 crores and our consolidated EBITDA stood at Rs 15,047 crores, despite the sharp rise in input costs especially coking coal and gas prices in Europe.
“In Europe, we achieved highest ever quarterly EBITDA of £621 million, which translates to an EBITDA per ton of £290.” The official said he expects that volatility in terms of steel price and input cost movement to continue in the next quarter and stabilise in the second half of the year.
Tata Steel is among the country’s top four steel producers and contributes around 18 per to the total domestic steel production. PTI ABI MR
