Tata Steel Ltd. reported consolidated net profit for the second quarter declined 89% to ₹1,297 crore following a drop in realisations across geographies, the company said.
Consolidated revenue slid to ₹59,878 crore from ₹60,387. Net debt stood at ₹71,753 crore.
The India business reported profit after tax stood at ₹1,993 crore compared with ₹8,843 crore in the year-earlier period, down 77%. The India business reported turnover of ₹34,114 crore compared with ₹34,324 crore.
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Deliveries in India were higher by 7% YoY. In Europe deliveries were lower on QoQ basis, in part due to seasonal factors and subdued demand in Europe. Turnover was £2,307 million and EBITDA was £199 million, which translates to an EBITDA per ton of £106.
T V Narendran, CEO & MD, Tata Steel said “Concerns about slowdown in key economies, persisting geopolitical issues coupled with seasonal factors led to a volatile operating environment. Despite these headwinds, Tata Steel registered best ever domestic sales in India enabled by a strong product portfolio and an extensive distribution network which services end to end requirements in chosen segments”.
Koushik Chatterjee, ED and CFO said, “Globally, gross steel spreads declined amidst concerns about global recovery and elevated input costs including energy. Utilisation of high-cost inventory of raw material and steel coincided with drop in realisations to result in margin decline across geographies.
“The operating environment though should gradually improve in 2HFY23 on government measures and restocking. The margins should benefit across geographies from gradual recovery in Indian markets and favourable movement in raw material prices, especially Coking coal. Energy costs in Europe continue to remain a key watchpoint,” he added.
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