Tata Steel Q3 net profit surges 139% to Rs 9,598 cr, revenue rises 45%

Steel major Tata Steel on Friday reported 139% jump in consolidated net profit at Rs 9,598 crore for the quarter ending December 31, 2021. The steelmaker reported consolidated net profit of Rs 4,011 crore in the year-ago period.

The company's expenses rose to Rs 48,666.02 crore from Rs 36,494.91 crore.

Consolidated free cash flow was Rs 6,338 crore during 3QFY22 despite an increase in working capital of Rs 2,045 crore, said the company. Consolidated revenue surged 45% to Rs 60,783 crore as against Rs 41,935 crore a year ago.

T V Narendran, Chief Executive Officer & Managing Director, said: “India steel demand has begun to improve on the back of continued economic recovery as 3rd wave of COVID begins to ebb. We continue to drive value accretive growth in our chosen segments and our performance in key segments such as auto was robust despite the sector being impacted by the semiconductor shortage. Our European operations continue to perform underpinned by strong improvement in realizations."

On Friday, the company's scrip closed trading 0.9% higher at Rs 1,176. 

India-headquartered Tata Steel Group is among the top global steel companies with an annual capacity of 34 MT. 

In yet another step towards reducing carbon emissions, Tata Steel said it is conducting trials to inject Coal Bed Methane gas into a blast furnace to reduce coke consumption during steelmaking. The merger of Tata Steel BSL with Tata Steel has been completed, the company said in a stock exchange filing. 

The company said business outlook for Q4 remains stable despite volatile raw material prices and sees FY22 capex of Rs 10,000 crore-Rs 12,000 crore. 

Koushik Chatterjee, Executive Director and Chief Financial Officer, said: “Tata Steel continued to deliver strong operating and financial performance in 3QFY22 with year on year EBIDTA growth of 64% and Profit after Tax growth of 139%. The company posted strong operating cash flows in the quarter despite a significant surge in international coal prices and increased working capital requirements. Despite market volatility, the revenues were broadly stable at Rs 60,783 crore while EBIDTA was Rs 15,853 crore, which works out to a margin of 26% with Tata Steel Standalone EBIDTA margin at 38%."

"Tata Steel Long Products has been declared the winning bidder for Neelachal Ispat Nigam Limited. This will enable us to significantly ramp up our Long products portfolio and benefit from the growth in infrastructure in India and retail housing growth in semi urban India," said Narendran.