Tata Steel reported an almost fivefold jump in its third quarter consolidated net profit to ₹1,136 crore on better realisations.
The company, which is in the process of bidding for distressed steel firms to double it capacity, saw its revenue increase 15% to ₹32,464 crore. The surge in profits came on the back of lower base as the steel maker sold its unprofitable assets in the U.K. and merged its European operations with Thyssenkrupp AG in the same quarter last year.
Global trend
Commenting on the results, Tata Steel MD & CEO, T.V. Narendran said, “Globally, steel prices have been buoyant with improved trade position in China along with cost push from raw materials. Over the last nine months, we delivered strong consolidated operational performance across geographies and we expect this momentum to continue as markets are expected to remain favourable.” The company’s EBITDA improved 59% to ₹5,801 crore. The board has approved a 5 MTPA expansion at Tata Steel Kalinganagar at cost of ₹23,500 crore to be completed within 48 months from zero date.
“The company’s Kalinganagar Plant had to shut down its Blast Furnace for unplanned major repairs following a sudden failure in the auxiliary equipment. As the downstream operations are integrated with the blast furnace, consequently, the Steel Melting Shop and Hot Strip Mill have also been shut down,” the company said in a statement. Its shares on the BSE closed up 1.83% at ₹683.65 in a weak Mumbai market on Friday.
