Tata Steel Q2 Results: Multi-Fold Surge in Net Profit

SEATTLE (Scrap Monster): Tata Steel reported highest-ever quarterly consolidated EBITDA during the second quarter of fiscal year 2022. The consolidated PAT beat estimates and the company reported multi-fold surge in net profits during the quarter.

During the second quarter, the company’s consolidated adjusted EBITDA surged higher by 12% over the previous quarter to INR 17,810 crores. The consolidated profit after tax registered 28% growth over the quarter to INR 12,548 crores. Tata Steel reduced its gross debt to INR 78,163 crore and net debt to INR 68,860 crore.

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The crude steel production soared by 2.2% over the quarter to 4.73 million tonnes. The overall deliveries reported 11% quarter-on-quarter increase to 4.58 million tonnes, despite seasonal weak market conditions. The sales volume to automobile sector surged higher by 18% in spite of weakness in the sector due to semiconductor shortage.

Tata Steel Europe revenues registered substantial surge by almost 50% to £2,108 million in the second quarter of the fiscal.

T.V. Narendran, CEO & Managing Director, Tata Steel noted that the company was able to deliver strong results across key geographies The European operations delivered robust performance underpinned by robust improvements in realizations. The steel deliveries in India too remained strong, he noted. The escalated coal prices and energy costs are likely to act as primary risks to margin improvement, he added.