Tata Steel Ltd.’s quarterly profit increased, exceeding expectations, thanks to higher prices, a better product mix, and operational efficiency initiatives. According to its exchange filing, the steelmaker made a net profit of Rs 3,989 crore in the quarter ended December, compared to a loss of Rs 1,166 crore in the same quarter a year earlier. This compares to an analyst consensus estimate of Rs 3,410 crore monitored by Bloomberg. Domestic sales dropped 4% year over year as hot-rolled coil steel prices increased, bringing revenue to a seven-quarter high of Rs 39,594 crore. The company’s revenue increased by 11.5 percent year over year.
Tata Steel’s Revenue Over The Quarters
Figures in Rs crore
According to the company, operating profit increased 160.7 percent year on year to Rs 9,540 crore, as realization increased in the steelmaker’s main entities. According to Bloomberg reports, this is the highest figure in at least nine quarters.
Figures in Rs crore
On the back of strong underlying operating performance in the India business, sharp focus on capital allocation, and continued recovery from the deep impact of the pandemic in the first quarter of the financial year, Tata Steel has delivered one of the best financial performances during this quarter with the highest ever consolidated Ebitda of Rs 9,540 crore and free cash flows of over Rs 12,000 crore.
- Tata Steel is a steel company based in India. The merger of Bhushan Steel and Tata Steel is moving forward.
- Following the termination of the talks with SSAB on Tata Steel Netherlands, the company will concentrate on its output and cash flows in the near future.
- For the nine months ending December 31, 2020, the company reduced net debt by Rs 18,609 crore and gross debt by Rs 7,649 crore.
- In the fourth quarter of the current fiscal year, to reduce gross debt by more than Rs 12,000 crore.
- Within the confines of the targeted financial system, the capital was re-allocated to India’s margin expansionary growth projects.