Net Profit Jumps 139% Yoy To Rs 9,598 Crore; Revenue Stable At Rs 60,783 Crore

Tata Steel Limited today posted broadly stable consolidated revenues at Rs 60,783 crores for the quarter ended December 31, 2021, as the improvement in net realisations more than offset the drop in volumes. In its quarterly earnings report, the company posted a consolidated net profit of Rs 9,598 crore, an over 139 percent increase year-on-year, but a 23.5 percent decline quarter-on-quarter.

According to the report, the company’s consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at Rs 15,853 crore, as against Rs 16,618 crore in Q2FY22 (down 4.6 percent) and Rs 9,652 crore in the corresponding quarter the previous fiscal (up 64.2 YoY).

The company stated in the report that its Consolidated Free Cash Flow was Rs.6,338 crore, despite an increase in working capital of Rs 2,045 crore. The company also said it spent Rs 2,790 crore on capex during the quarter. Work on the Pellet plant, the Cold Roll Mill complex and the 5 MTPA expansion at Kalinganagar is ongoing, the report said.

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The company’s crude steel production increased by 2 percent QoQ and 4 percent YoY to 4.81 million tonnes. Its domestic deliveries increased by 2 percent QoQ and its sales volume to automotive segment remained steady QoQ despite a 9 percent drop in auto OEM production due to semiconductor shortages.

“In yet another step towards reducing carbon emissions, Tata Steel is conducting trials to inject Coal Bed Methane gas into a blast furnace to reduce coke consumption during steelmaking. The trial will also provide useful insights regarding operation of blast furnaces with hydrogen-based injectants,” the company said.

(Edited by : Vijay Anand)

First Published: Feb 04, 2022, 07:35 PM IST