Tata Steel Ltd.’s reported third quarter consolidated net profit grew to ₹522 crore from a net loss of ₹2,502 crore in the same period last year due to robust performance of the Indian business.
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Consolidated revenues for the quarter stood lower at ₹55,312 crore, compared with ₹57,084 crore in the year ago period, down 3%.
The India business reported net profit of ₹4,429 crore compared with ₹1,786 crore in the year ago period. Turnover grew to ₹35,011 crore from ₹34,059 crore in the year ago period.
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Netherlands revenues were £1,239 million and EBITDA loss stood at £117 million. Liquid steel production was broadly stable at 1.19 million tons (mt) but lower on YoY basis due to the reline of one of the blast furnaces at Ijmuiden. Deliveries stood at 1.30 mt and were up 5% QoQ basis, the company said in a filing with exchanges.
Tata Steel said on Jan. 19 that it would commence statutory consultation on the proposed restructuring of the UK business as part of its transition to an economically and environmentally sustainable future.
T. V. Narendran, CEO & MD in a statement said, “Global operating environment has been complex, with economic slowdown in China and geopolitics weighing on commodity prices in general. During this quarter, China has exported between 7 to 8 mt of steel every month, which is the highest since 2015 and this has adversely impacted global steel prices as well as profitability.”
“Despite this context, Tata Steel India has delivered better margins aided by higher deliveries as well as realisations on a QoQ basis. Our domestic deliveries for the quarter stood at 4.78 mt and were up 3% QoQ and 10% YoY,” he added.
“Our deliveries in Netherlands were up while UK moved lower QoQ due to subdued demand as well as operational issues given the ageing assets. We will commence statutory consultations with the unions in the UK as a step toward our transition,” Mr. Narendran said.