Tata Steel Earnings Q3FY23: India’s steel manufacturing company Tata Steel on Monday posted an unexpected 76 percent in its consolidated net loss of ₹2,224 crore for the third quarter ending 31 December 2022 (Q3FY23). A year ago, the company had ₹9,572 crore profit in the bottom line.
The steel major reported a 6.08 percent drop in the revenue from operations to ₹57,083.56 crore for the quarter-ended compared with ₹60,783 crore in the year-ago period.
Expenses grew ₹57,172.02 crore in the third quarter of fiscal 23, up from ₹48,666.02 crore a year ago.
Topline 9MFY23:
Consolidated Revenues in the first nine months of fiscal 23 stood at 3% on-year up to ₹1,80,391 crores, surviving the volatile operating environment across geographies.
Koushik Chatterjee, Executive Director, and Chief Financial Officer said, “Global steel prices have witnessed steady moderation amidst inflationary pressures and concerns about an economic slowdown in the first nine months of the financial year.”
Operating Profit 9MFY23:
Consolidated EBITDA was ₹ 25,472 crores for the same period, with an EBITDA margin of 14%.
Tata Steel CEO and MD TV Narendran on European business said, “Our deliveries were lower in 9MFY23 due to slowdown in demand. Recession concerns weighed on steel prices, which coupled with elevated energy costs affected our performance.”
Operating Profit Q3FY23:
Consolidated EBITDA stood at ₹4,154 crore in Q3FY23, down from ₹12,422 crore. EBITDA margin was 7%.
The dip in profitability was due to a sharp drop in realizations and spreads in Europe.
Indian Business:
The company, in its Indian business, had a profit of ₹1,918 crore and a revenue of ₹32,325 crore for the third quarter of fiscal 23.
The company put out Rs 3,632 crores on capex during the third quarter ending 31 December 2022. At Kalinganagar, the phased commissioning of 6 MTPA pellet plants began during the quarter. Work on the 2.2 MTPA Cold Roll Mill complex and 5 MTPA expansion is still in process.
“Tata Steel has delivered steady growth in India volumes despite the volatile operating environment. Domestic deliveries stood at around 13.7 million tons in the first nine months of the financial year and were up 4% YoY,” Narendran said.
“We are presently expanding our capacities across multiple sites at Tata Steel Kalinganagar, Neelachal Ispat Nigam Limited, and the Electric Arc Furnace at Ludhiana in Punjab and our downstream plants across India.”