PINAKI MAJUMDAR
Jamshedpur, July 26: Tata Steel’s financial results for the first quarter of the current financial year 2022-2023 showed significant growth.
The steel major’s consolidated turnover rose by 18.63% to Rs 63,430 crore during the first quarter of the current financial year as compared to Rs 53,465 crore in the corresponding previous year.
The company’s consolidated profit after tax stood at Rs.7,714 crores during the first quarter of the current year.
The company’s EBITDA margin increased QoQ from 22% to 24% and EBITDA per ton increased from Rs 18,937 to Rs 22,717. Consolidated PAT for the quarter stood at Rs 7,714 crores.
In India, Standalone revenue stood at Rs 32,021 crores and EBITDA was Rs 9,616 crores. In Europe, the company achieved the highest ever quarterly EBITDA of £621 million, which translates to an EBITDA per ton of £290.
T V Narendran, chief executive officer and managing director, Tata Steel, said: “This has been a challenging quarter for the global and Indian economy with rising interest rates, supply chain constraints and a slowdown in China due to Covid. Despite these multiple headwinds, Tata Steel has delivered a strong performance with an improvement in margins. We continue to progress on our sustainability journey and are committed to being net zero by 2045.”
Tata Steel India’s revenue per ton rose by Rs. 8,534 QoQ to Rs. 83,625 per ton due to long-term contracts and product mix. Reported EBITDA stood at Rs.9,582 crores, which translates to an EBITDA per ton of Rs 23,557.
“Our strong marketing franchise and superior business model in India enabled us to successfully pivot and increase our domestic deliveries to counter the 15 % duty imposed on steel exports in the middle of the quarter. We continue to drive value accretive growth in India backed by investments in customer relationships, brands and distribution networks and remain well positioned to benefit from the buoyant automotive and retail housing demand and the government spend on infrastructure,” Narendran added.
Tata Steel is geared towards commissioning the 6 MnTPA pellet plant at Kalinganagar which will drive cost savings followed by the CRM complex and the 5 MnTPA expansion project.
Tata Steel Long Products, a subsidiary of Tata Steel, has completed the strategic acquisition of Neelachal Ispat Nigam Limited and was expected to drive the growth of the company’s long products business.
