Tata Steel Releases Quarterly Results: Profit Down By 13%
Tata Steel Q1 results: India's largest steel company Tata Steel on Monday released the June quarter results. The company has a consolidated profit of Rs 7,765 crore between April and June. This is down 12.8% from the same quarter last year. The Tata Group steel company had registered a Profit after tax of ?8,907 crore during Q2 last year. Let us know that before the quarterly results came out, the company's stock was bullish and it jumped more than 3% to close at Rs 964.70.
18.84% increase in revenue
Tata Steel reported that its operational revenue surged by 18.84% to Rs 63,430 crore in ?Q1FY23. It was ?53,372 crore in Q2 Last year. The consolidated EBITDA(earnings before interest, taxes, depreciation, and amortization) came at ?15,047 crore. EBITDA(earnings before interest, taxes, depreciation, and amortization) margin has improved to 24% based on QoQ. While EBITDA(earnings before interest, taxes, depreciation, and amortization) rose by Rs 3,780 per tonne to Rs 22,717.
What did the company say?
Tata Steel CEO and MD TV Narendran said it has been a challenging quarter for the global and Indian economy. During this time, there is an atmosphere of recession all over the world due to the increase in interest rates to the disruption in the supply chain and covid in China. Despite this, Tata Steel has given a strong performance with improvement in margins, breaking all these hurdles.
He further added, "Our strong marketing franchise and improved business model in India enabled us to successfully scale up and scale up our domestic deliveries to counter the 15% export duty imposed on steel in the middle of the quarter. "
In Europe, the Tata Group company achieved the highest ever quarterly EBITDA of £621 million, which translates to an EBITDA per ton of £290. "We expect that volatility in terms of steel worth and input value movement to continue within the next quarter however expect the spreads to stabilize within the H2 of the year.. We spent Rs 2,725 crores on capital expenditure in line with our annual capex guidance as we progress on our Kalinga nagar expansion," said Tata Steel CFO Kaushik Chatterjee.