Tata Steel reports net profit of Rs 522 cr in Q3FY24
Mumbai: Tata Steel Wednesday reported a consolidated net profit of Rs 522.14 crore for the October-December quarter, exhibiting a positive turnaround from a net loss of Rs 2,501.95 crore in the same period the previous year.
The robust domestic demand played a pivotal role in offsetting the weakness experienced in Europe.
In the second quarter, the company had reported a net loss of Rs 6,511.16 crore, primarily due to impairment charges.
During the October-December quarter, the consolidated revenue from operations for the Tata Group company witnessed a three percent decline to Rs 55,311.9 crore, compared to Rs 57,083.56 crore in the corresponding period of the previous year.
On a sequential basis, consolidated revenue from operations experienced a 0.7 percent decline from Rs 55,681.93 crore in the preceding quarter.
Steel companies in India benefited from rising steel prices due to strong demand fuelled by substantial government infrastructure spending.
However, higher coking coal costs impacted the gains, and companies may not have been able to fully pass on the impact of rising costs due to the availability of cheaper Chinese imports in the market.
The company reported that India revenues amounted to Rs 35,011 crores and remained relatively stable on a quarter-on-quarter (Q-o-Q) basis. Narendran added, "The consistent growth in India deliveries has been aided by crude steel production being close to 5 million tons across the quarters in this financial year."
The domestic steel major indicated that crude steel production in its India unit reached 5.35 million tonnes (MT), reflecting a six percent increase both quarter-on-quarter (QoQ) and year-on-year (YoY).
The ongoing robust demand for steel in India contributed to the steelmaker achieving its 'best-ever 3Q' sales, with domestic deliveries totaling 4.88 MT.
Deliveries for the Industrial Products & Projects segment saw an approximately five percent increase QoQ and six percent increase YoY. Within the sub-segments, engineering achieved its best-ever quarterly sales.
The company's Automotive & Special Products segment recorded a delivery increase of about eight percent QoQ and 22 percent YoY.
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