You are here: Home » Markets » News
Business Standard

Tata Steel shares gain 3% on strong September quarter results

Tata Steel said it has initiated discussions with SSAB Sweden based on interest received for the potential acquisition of Tata Steel's Netherland business, including Ijmuiden steelworks

Tata Steel | Buzzing stocks | Markets

SI Reporter  |  Mumbai 

tata steel

Shares of rose 3 per cent to Rs 499 on the BSE on Saturday after delivering strong results in India with broad based, market leading volume growth and strong cash flow generation during the September quarter (Q2FY21).

The company’s Ebitda (earnings before interest, taxes, depreciation, and amortization) from India operations surged 4.1 times quarter-on-quarter (QoQ) and 49 per cent year-on-year (YoY) to Rs 6,025 crore, driven by higher volumes, improved realizations and cost efficiencies.

In Q2FY21, the company’s consolidated Ebitda surged 10.4 times QoQ and 60 per cent YoY to Rs 6,217 crore while consolidated profit after tax from continuing operations increased by 136 per cent QoQ to Rs 1,635 crore.

The free cash flow generated during the quarter was Rs 7,832 crore. The company said it is committed to deleveraging of $1billion annually and has reduced net debt by Rs 8,197 crore during the quarter.

However, on a year-on-year (YoY) basis, consolidated net profit down 50 per cent as tax expenses ate into the profits even as sales were up. Net sales of the company stood at Rs 36,476 crore in the period under review, up 7.4 per cent from same period last year due to higher volumes, improved realisations and cost efficiencies. Tax expense of Rs 613 crore in the September quarter hurt the company’s bottomline in the period under review.

said it has initiated discussions with SSAB Sweden, based on interest received for the potential acquisition of Tata Steel’s Netherland business, including Ijmuiden steelworks.

The company has also commenced discussions with the Supervisory Board and Board of Management of Netherlands and the process will move to the next stage including due diligence and stakeholders’ consultations. The company is committed to deploy proceeds of any strategic restructuring towards additional deleveraging of the balance sheet, it said.

Tata Steel further said that it has initiated the process to separate Tata Steel Netherlands and Tata Steel UK and will pursue separate strategic paths for the Netherlands and UK business in the future.

Besides, Tata Steel continues its dialogue with the UK Government on potential measures to safeguard the long-term future of Tata Steel UK and is also reviewing all options to make the business self-sustaining without the need for any funding support from Tata Steel India in the future, it said.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sat, November 14 2020. 18:24 IST