 "Q2 results: Tata Steel beats Tata Consultancy Services in net profit")
Thanks to a big surge in its margins and net profit in Q2FY22, Tata Steel has overtaken Tata Consultancy Services (TCS) to become the most profitable company in the Tata Group.
Tata Steel reported consolidated net profit of Rs 11,833 crore during the September quarter (Q2) against TCS’ consolidated profit of Rs 9,624 crore in the second quarter.
Tata Steel consolidated net profit in the first half of FY22 at Rs 20,740 crore is also ahead of TCS H1FY22 earnings of Rs 18,632 crore. This is the first time in more than a decade that Tata Steel quarterly net profits have been higher than that of TCS.
This excludes net profit from exceptional gains. Prior to this quarter Tata Steel earnings were last ahead of TCS in June 2011 quarter (Q1FY12).
The steel major however lags behind Tata Motors, which is the biggest company in the group in terms of revenues. Tata Steel reported net sales of Rs 59,394 crore in Q2-FY22 against Tata Motor's Rs 60,436 crore. TCS, however, remains the most valuable group company by a long mile with a market capitalisation of Rs 12.9 trillion on Thursday followed by Titan and Tata Motors.
In comparison, Tata Steel has the fourth biggest mkt cap in the group at Rs 1.56 trillion on Thursday.
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