PINAKI MAJUMDAR
Jamshedpur, July 25: Tata Steel announced its financial results for the quarter which ended June 30, 2023.
The company reported consolidated revenues of INR 59,490 crores for the quarter.
The EBITDA for the same period stood at Rs 6,122 crores, with an EBITDA margin of 10 %.
Consolidated Profit after Tax (PAT) was Rs 525 crores. Profitability was affected by a non-cash deferred tax charge due to the buy-in transaction at the British Steel Pension Scheme (BSPS).
However, the successful completion of the insurance buy-in of BSPS has effectively derisked Tata Steel UK.
In India, the revenues were Rs 34,901 crores, and EBITDA reached Rs 7,514 crores.
T.V. Narendran, Chief Executive Officer and Managing Director said: “During the quarter, global economic recovery continued to face headwinds affecting commodity prices including steel. In India, domestic steel demand continued to grow and was up around 10% on YoY basis but steel spot prices moderated in line with global cues. Tata Steel delivered steady performance, with India crude steel production of around 5 million tons. Domestic deliveries were up 20% and grew at a faster pace than India’s apparent steel consumption. We saw strong growth in key segments such as branded products , retail, industrial products and projects”.
Narendran further added, “I am happy to share that Neelachal Ispat Nigam Limited has begun to stabilise and is operating close to rated capacity within just 9 months of acquisition. The 5 MTPA expansion at Kalinganagar is underway with facilities getting commissioned in a phased manner. This is an important milestone in our journey to grow to 40 million tons and will aid in further consolidating our market position in India. We continue to progress on our sustainability journey and multiple initiatives are underway, calibrated to each operating location.”
Koushik Chatterjee, Executive Director and Chief Financial Officer, said: “Despite a moderation in global steel spreads, our margin was broadly stable at around 10%. India business generated higher margin of around 22% and EBITDA stood at Rs 7,514 crores.”
Based on the recommendation of the Nomination and Remuneration Committee, the Board of Directors of Tata Steel considered and unanimously approved the re-appointment of T. V. Narendran as the Chief Executive Officer and Managing Director of the Company for a further period of five years effective September 19, 2023 through September 18, 2028, not liable to retire by rotation.
The re-appointment is subject to approval of the shareholders of the company. T. V. Narendran’s present tenure as CEO and MD will conclude on September 18.
