Tata Steel on Thursday posted a multi-fold jump in consolidated net profit for the September quarter at Rs 11,918 crore as against Rs 1,565 crore a year ago, helped by higher income.
Its total income during July-September 2021 stood at Rs 60,554 crore as against Rs 39,158 crore in the year-ago period.
The firm’s total expenses were at Rs 47,135.28 crore in July-September 2021 as against Rs 37,000.28 crore a year ago.
Tata Steel is among the top steel companies in the world with an annual crude steel capacity of 33 million tonnes per annum.
The Board of Directors of the Company on Thursday approved the issuance of one fully paid-up Equity Share of Tata Steel Limited of face value Rs 10 each for every fifteen equity shares of Tata Steel BSL Limited of face value Rs 2 each.
On Thursday, Tata Steel’s scrip on NSE closed trading nearly flat at Rs 1,300.
T V Narendran, Chief Executive Officer & Managing Director, Tata Steel said: “Tata Steel has delivered strong results across key geographies in this seasonally weaker quarter. Our steel deliveries in India expanded by 11% despite a contraction in market demand which is a testament to the strength of our franchise. We continue to drive value accretive growth in our chosen segments and our performance in key segments such as auto was very robust despite the sector being impacted by the semiconductor shortage. Our European operations have also delivered robust performance underpinned by strong improvement in realistions. We are watchful of the elevated coal prices and high energy cost as key risks to margins going forward.”
Koushik Chatterjee, Executive Director and Chief Financial Officer, Tata Steel said: “Tata Steel posted its highest ever underlying quarterly performance with EBIDTA and Profit after Tax of Rs 16,618 crore and Rs 12,548 crore on the back of strong operating and market performance across all geographies including Europe. This translates into a consolidated EBIDTA Margin of 27.6% and PAT margin of 20.8% for the quarter. The operating cash flows continue to be strong despite working capital pressure due to price effect on coal price increase in recent months. We signed and closed the divestment of our 100% holding in NatSteel Holdings in this quarter to realise around Rs 1,200 crore that resulted in a realised gain of Rs 720 crores for the quarter.
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