Tata Steel Q2 net profit jumps manifold to Rs 12,547 crore; output grows to 7.77 MT

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Updated: November 11, 2021 9:00 PM

The company's net profit was at Rs 1,665.07 crore in the corresponding quarter of the previous financial year, Tata Steel said in a BSE filing.

tata steelThe firm's total expenses were at Rs 47,135.28 crore in July-September 2021 against Rs 37,000.28 crore a year ago. (File)

Tata Steel on Thursday said its consolidated net profit jumped manifold to Rs 12,547.70 crore in the July-September quarter of 2021-22 helped by higher income.

The company’s “net profit for the period” was at Rs 1,665.07 crore in the corresponding quarter of the previous financial year, Tata Steel said in a BSE filing.

Its total income during July-September 2021 stood at Rs 60,553.63 crore against Rs 39,157.79 crore in the year-ago period.

The firm’s total expenses were at Rs 47,135.28 crore against Rs 37,000.28 crore a year ago.

On a standalone basis, the net profit grew to Rs 8,707.26 crore from Rs 2,538.70 crore in July-September 2020. Its standalone income was at Rs 32,964.39 crore during the quarter under review as against Rs 21,820.49 crore a year ago.

Total expenses were at Rs 21,233.99 crore compared to Rs 18,474.66 crore in the year-ago-quarter.

In a separate statement, the company said its consolidated steel output was at 7.77 million tonnes (MT), higher from 7.25 MT a year ago.

While deliveries were at 7.39 MT compared to 7.93 MT in the same quarter in 2020-21.

Tata Steel Chief Executive Officer and Managing Director T V Narendran said Tata Steel has delivered strong results across key geographies in this seasonally weaker quarter. The deliveries in India expanded by 11 per cent despite a contraction in market demand.

“We recently exited our operations in Singapore through the sale of NatSteel. European operations have also delivered robust performance underpinned by strong improvement in realizations. We are watchful of the elevated coal prices and high energy cost as key risks to margins going forward. Our 5 MTPA TSK (Tata Steel Kalinganagar) phase II expansion including the pellet plant and CRM (cold rolling mill) complex is progressing well and the merger of Tata Steel BSL with Tata Steel will be completed shortly,” he said.

Tata Steel recently won the high quality Gandhalpada iron ore mines which will help achieve raw material security beyond 2030, Narendran said.

Tata Steel Executive Director (ED) and Chief Financial Officer (CFO) said, “We signed and closed the divestment of our 100% holding in NatSteel Holdings in this quarter to realise around Rs 1,200 crore that resulted in a realised gain of Rs 720 crores for the quarter.

“As part of our enterprise strategy, we continue to deploy the free cash flows for de-leveraging the balance sheet with Rs 11,424 crore of debt repayment in the first half of the current financial year and are targeting additional, aggressive deleveraging in the second half as well.”

According to the company statement, Tata Steel is pursuing the hydrogen route in IJmuiden and a detailed assessment is underway. This involves the introduction of direct reduced iron (DRI) technology which can make iron using natural gas or hydrogen, before it is converted to steel.

It also said Tata Steel has completed the divestment of its 100 per cent stake in NatSteel Holdings Pte. Ltd. Singapore, and the merger of Tata Steel BSL with Tata Steel has been approved by the NCLT, Mumbai bench.

The appointed date for the merger is April 1, 2019, it said.

India-headquartered Tata Steel is among the top steel companies in the world with an annual crude steel capacity of 33 million tonnes per annum.

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