Tata Steel on Thursday reported a consolidated net profit of Rs 8,907 crore for the quarter ending June 30, 2021 (Q1FY22). The company had posted a loss of Rs 4,416 crore in the year-ago period.
Sequentially, the profit after tax, attributable to the owners of the company, rose 34 per cent from Rs 6,644 crore in the March quarter.
According to a consenus Bloomberg estimate, Tata Steel was expected to report a record profit of over Rs 9,000 crore, while the revenue was seen at Rs 52,300 crore for the June quarter.
One of the top performer in the Nifty50 pack, its revenue from operations more than doubled to Rs 52,574 crore from Rs 24,997 crore in the last year period.
“Indian markets were adversely impacted again during the last quarter due to the second wave of coronavirus which impacted our steel production as well as deliveries. Demand has begun recovering in India, though domestic steel prices continue to be at a steep discount to China import parity prices,” said T V Narendran, Chief Executive Officer and Managing Director, Tata Steel.
Tata Steel’s shares have rallied as much as 117 per cent this year. The scrip, ahead of results, rose 0.52 per cent to Rs 1,433.6 on NSE.
Tata Steel has reported its highest ever quarterly consolidated EBITDA at Rs 16,185 crore.
“We continue to focus on our objective to attain and retain market leadership in chosen segments by building strong customer relationships, superior distribution network, rolling out brands and developing new products and solutions in steel and new materials,” Narendran said.
The chief financial officer Koushik Chatterjee said: “Despite the increase in working capital due to higher prices of both steel and raw material, the company generated consolidated free cash flow of over Rs 3,500 crore during this quarter and made debt repayments of Rs.5,894 crore. We are committed to deleverage further and expect to bring down the debt significantly by the end of the current financial year. We continue to prioritize capex spend on ongoing projects and strategically essential investments.”