The steelmaker’s consolidated net profit stood at 522 crore rupees in Oct-Dec as against a loss both in the year-ago period and a quarter ago. Consolidated sales for the quarter were down 3% on year at 55,312 crore rupees.
“Global operating environment has been complex, with economic slowdown in China and geopolitics weighing on commodity prices in general,” TV Narendran, chief executive officer and managing director said.
Tata Steel’s consolidated earnings before interest, tax, depreciation and amortization jumped more than 50% on year to 6,334 crore rupees even as deliveries remained flat. The operating profit was higher on a sequential basis as well.
China exported between seven to eight million tonne of steel each month in the December quarter, the highest since 2015. “Despite this context, Tata Steel India has delivered better margins aided by higher deliveries as well as realisations on a QoQ basis,” Narendran said.
Tata Steel’s sales volume in India rose 3% on quarter and 10% on year to 4.78 million tonne, with sales in the automotive segment the best ever for the December quarter. In Netherlands and UK, the company’s sales volumes were lower as compared to the previous year, pulling both the operations in the red at an operational level.
“The UK business continues to face production shortfalls arising from the end-of-life condition of several of its heavy end assets. In Netherlands, we expect BF#6 (blast furnace) to restart by the end of January,” Koushik Chatterjee, executive director and chief financial officer was quoted in a release.Last week, Tata Steel announced that it will be shutting its blast furnaces and other heavy assets at Port Talbot in UK by the end of the year.
“Tata Steel is acutely aware of the impact of its proposal to wind down the heavy end in Port Talbot on individuals and the local community associated with our steel works, we will meaningfully consult with our employees and work to provide them with a fair, dignified and considerate outcome,” Chatterjee said.
Tata Steel reported its earnings after market hours, and its shares closed at 135.15 rupees on the NSE, up nearly 4% from the previous close.
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