Tata Steel Ltd reported 89% decline in consolidated net profit to ₹ 1,297 crore for the second quarter following a decline in realizations across geographies, the company said.
Consolidated revenue declined from ₹60,387 to ₹59,878 crore. Net debt was ₹71,753 crore.
India business reported profit after tax of ₹1,993 crore as against ₹8,843 crore in the year-ago period, down 77%. India business registered a turnover of ₹34,114 crores as against ₹34,324 crores.
Delivery in India was up over 7% YoY. Delivery in Europe was lower on a QoQ basis, partly due to seasonal factors and weak demand in Europe. Turnover was £2,307 million and EBITDA was £199 million, which translates to £106 per tonne of EBITDA.
TV Narendran, CEO and MD, Tata Steel, said, “Worries about slowdown in major economies, persistent geopolitical issues as well as seasonal factors have led to an unstable operating environment. Despite these adverse conditions, Tata Steel has managed a Recorded best ever home sales in India enabled by a strong product portfolio and a wide distribution network, which caters to the ultimate needs of services in select regions.
ED and CFO Kaushik Chatterjee said, “Global steel spreads have declined amid concerns about a global recovery and higher input costs, including energy. Utilization of high-cost inventory of raw materials and steel was accompanied by a decline in receivables, resulting in a decline in margins across geographies.
“However, there should be a gradual improvement in the operating environment in 2HFY23 on government measures and restocking. Margins should benefit from gradual recovery in Indian markets and favorable volatility in raw material prices, especially coking coal. Energy costs remain a major monitoring point in Europe,” he said.