Net Profit Falls But Beats Estimates


Tata Steel Ltd.’s third-quarter profit declined but beat estimates sequentially even as coal costs rose.

The steelmaker’s consolidated net profit slid 19.7% over the preceding quarter to Rs 9,572.6 crore in the three months ended December, according to an exchange filing. That compares with the Rs 9,017.7-crore consensus estimate of analysts tracked by Bloomberg.

Net profit more than doubled over a year earlier.

Other Highlights (QoQ)

  • Revenue rose 0.7% to Rs 60,783.1 crore. Analysts had estimated Rs 59,679 crore. Revenues were broadly stable as improvement in net realisations more than offset the drop in volumes.

  • Operating profit declined 3.4% to Rs 15,893.6 crore, staying in line with the estimated Rs 15,268 crore despite a surge in international coal prices.

  • Margins moderated to 26.1% versus 27.3%. The estimate was 26%.

  • Total expenses rose 3% quarterly to Rs 48,666 crore.

Domestic deliveries rose 2% sequentially and in the first nine months of the financial year, driving improvement in product mix. Sales volume of branded products and retail and industrial products and projects segments improved sequentially. Automotive sales remained flat even as output fell 9% sequentially.

Tata Steel Q3FY22 (Consolidated, YoY)

  • Revenue up 44.9% at Rs 60,783.1 crore.

  • Net profit up 158.9% at Rs 9,572.7 crore.

  • EBITDA up 66.1% at Rs 15893.7 crore.

  • Margin at 26.14% vs 22.8%.


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