Tata Steel Long Products declines after Q2 PAT drops 59% sequentially

Tata Steel Long Products slumped 4.24% to Rs 873.85 after the company's net profit declined by 59.36% to Rs 134.77 crore in Q2 FY22 from Rs 331.60 crore in Q1 FY22.

The company had recorded a net profit of Rs 59.05 crore in Q2 FY21.

Revenue from operations in the second quarter fell by 2.98% to Rs 1,637.37 crore from Rs 1,687.64 crore reported in the first quarter of the financial year 2021-22. As compared with Q2 FY21, revenue in Q2 FY22 has risen by 38.07%.

Total expenses in Q2 September 2021 was Rs 1,502.45 crore, up by 17.14% QoQ and up 31.36% YoY. The sharp increase in expenses was primarily on account of a steep rise in raw material costs (up 37.13% QoQ and up 78.96% YoY).

The company posted a pre-tax profit of Rs 184.74 crore in Q2 FY22, down by 58.40% from Rs 444,03 crore in Q1 FY22. The company had registered a pre-tax profit of Rs 57.78 crore in Q2 FY21.

Tata Steel Long Products is one of India's largest merchant sponge iron manufacturers. The company is engaged in the production of sponge iron by direct reduction method of iron ore and power generation from waste heat.

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