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Tata Steel Q3 results: Net profit at Rs 4,011 crore; revenue up 11.4%

Revenue from operations stood at Rs 39,594.09 crore in the period under review

Tata Steel | Q3 results

BS Web Team  |  New Delhi 

tata steel
Tata Steel's scrip ended 0.48 per cent lower on BSE at Rs 699.55 per share

reported a consolidated net profit of Rs 4,011 crore for the quarter ended December 31, 2020. The company had posted a loss of Rs 1,228 crore in the same period a year ago. Sequentially, profit rose 140 per cent. It was Rs 1,665 core in the September quarter (Q2FY21).

Revenue from operations stood at Rs 39,594.09 crore for the period under review, up 11.4 per cent from same period last year.

“The recovery in the global and Indian economy has led to sharp improvement in steel demand in India. We pivoted our deliveries to domestic markets, to cater to the requirements of our local customers by reducing exports. All the segments, especially automotive, have performed extremely well supported by our continuous focus on strong customer relationships, superior distribution network, brands and new product developments," T V Narendran, CEO and managing director of the company said.

Driven by higher prices, better product mix, lower exports and operating efficiency initiatives, the company said it has achieved the highest ever quarterly EBITDA of Rs 8,811 crores with 46 pe rcent quarter-on-quarter and 2.14x year-on-year growth.

This translates into an EBITDA per ton of Rs 18,931 and an EBITDA margin of 34.9 per cent, it said in a stock exchange filing.

Crude steel production remained strong at 4.60 million tonne, registering a 3 per cent year-on-year growth in Q3FY21.

Commenting on the performance, Koushik Chatterjee, executive director and CFO said: “Continuing with the recovery from the deep impact of the pandemic in the first quarter of the financial year, has delivered one of the best financial performance during this quarter with the highest ever consolidated EBITDA of Rs 9,540 crores and free cash flows of over Rs 12,000 crores on the back of strong underlying operating performance of the India business, sharp focus on capital allocation and working capital management."

Domestic deliveries grew 4 per cent year-on-year to 4.16 million tonne. Exports shrank below 11 per cent of overall deliveries.

"Sales witnessed strong momentum but was constrained by lower opening inventory," the company said in a filing

The total expenses of the company stood at Rs 34,183 crore in the latest December quarter.

Tata Steel's scrip ended 0.48 per cent lower on BSE at Rs 699.55 per share.

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First Published: Tue, February 09 2021. 19:40 IST