The Business Bytes
TBB BUREAU
MUMBAI, OCT 31, 2022
The country’s largest private sector steel company Tata Steel on Monday reported that its consolidated Profit After Tax (PAT) stood at Rs 1,297 crore and consolidated turnover at Rs 59,878 crore in the second quarter of the current financial year (Q2FY23).
Despite headwinds like slowdown in key economies, persisting geopolitical issues and seasonal factors, Tata Steel registered best-ever domestic sales in India enabled by a strong product portfolio and an extensive distribution network which services end to end requirements in chosen segments.
India deliveries were higher by 21% QoQ (quarteronquarter) and 7% YoY (year-on-year) primarily driven by record domestic deliveries. The Company’s India turnover stood at Rs 34,114 crore.
“Our 6 MnTPA pellet plant at Kalinganagar is coming on stream shortly and will deliver significant benefits by reducing costs. We will begin the phased commissioning of the 2.2 MTPA state of the art Cold Rolling Mill complex and the 5 MTPA capacity expansion at Kalinganagar thereafter. Despite multiple challenges, we were successful in commissioning Neelachal Ispat Nigam Limited (NINL) within3 months of acquisition and the ramp-up is progressing well,” said TV Narendran, Chief Executive Officer & Managing Director, Tata Steel.
“I am happy to announce that we have commenced work at our new 0.75 MTPA Electric Arc Furnace (EAF) at Punjab, strategically located in proximity to the market and the scrap generating auto hub in North India. We will set up more EAFs in the country, which will enable capacity augmentation and along with NINL expansion, will drive growth in our high margin retail business. Our EAF expansion is an important milestone in our sustainability journey and part of the multiple initiatives we are pursuing to achieve net zero by 2045,” he added.
Koushik Chatterjee, Executive Director and Chief Financial Officer, said, “Globally, gross steel spreads declined amidst concerns about global recovery and elevated input costs including energy. Our Consolidated revenues for the quarter stood at Rs 59,878 crores and our consolidated EBITDA stood at Rs 6,271 crores, with Consolidated EBITDA margin of 10% and Standalone EBITDA margin of 16%. Consolidated PAT for the quarter stood at Rs 1,297 crores. In India, Standalone revenue stood at Rs 32,245 crores and was broadly similar on QoQ basis due to higher volumes. Standalone EBITDA was Rs 5,135 crores.”
“We continue to remain focused on cost optimisation, operational improvements and working capital management to maximise cashflows. Our liquidity position continues to be strong and credit metrices remain at Investment grade levels. The proposed merger of seven listed and unlisted entities to be value accretive by enabling faster growth, optimal resource use and will provide greater liquidity to shareholders,” he added.
The Company’s 6 MnTPA Pellet plant in Kalinganagar will be commissioned in Q3FY23 and will be followed by the Cold Roll Mill complex in phases. The 5 MnTPA expansion at Kalinganagar is on track for commissioning by end FY24.
