Tata Steel Q3 Results : Tata Steel Ltd.’s quarterly profit rose, beating estimates, aided by higher prices, a better product mix and initiatives to improve operating efficiency.
The steelmaker reported net profit of Rs 3,989 crore in the quarter ended December against a loss of Rs 1,166 crore in the corresponding quarter a year ago, according to its exchange filing. That compares with the Rs 3,410-crore consensus estimate of analysts.
Revenue rose to a seven-quarter high of Rs 39,594 crore even as domestic sales fell 4% over the preceding year as prices of hot-rolled coil steel rose. The company’s top line grew 11.5% year-on-year.
Operating profit rose 160.7% over the preceding year to Rs 9,540 crore, the company said, as realisation rose in the steelmaker’s key entities.
Continuing with the 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 performance during this quarter with the highest ever consolidated Ebitda of Rs.9,540 crores and free cash flows of over Rs 12,000 crore on the back of strong underlying operating performance of the India business, sharp focus on capital allocation and working capital management.
Koushik Chatterjee, Executive Director and CFO, Tata Steel
Key Highlights
- Tata Steel Bhushan Steel merger with Tata Steel is progressing.
- Following the termination of the discussions with SSAB on Tata Steel Netherland, the company will focus on performance and cash flows in the immediate term.
- Reduced net debt by Rs 18,609 crore and gross debt by Rs 7,649 crores for nine months ended Dec. 31, 2020.
- To further pare gross debt by more than Rs 12,000 crore in the fourth quarter of the ongoing fiscal
- Restarted allocating capital on margin expansionary growth projects in India within the contours of the targeted financial framework.
Source : Bloombergquint
