In a recent update, Indian multinational steel making company, Tata Steel Ltd. has reported its first-quarter consolidated net profit grew 75% to ₹919 crore from Rs 525 crore in the year-earlier period.
TATA Steel Q1 Net Profit Grew By 75%
Although, the companies reported consolidated revenues for the April-June 2024 quarter were lower at Rs 54,771 crore in comparison with Rs 59,490 crore in the same period last year.
India business reported a reduction by 33% in the net profit of ₹3,335 crore as compared with ₹4,995 crore in the year-earlier period.
When it comes to the revenue, they were also down at Rs 33,194 crore as compared with Rs 36,146 crore in the same period last year.
It appears that the company had spent Rs 3,777 crore on capital expenditure during the quarter.
The company further added that the phased commissioning of the 5 MTPA expansion at Kalinganagar is progressing well towards blast furnace start-up in September 2024.
In a filing, the company noted that “Net debt stands at Rs 82,162 crore. Our group liquidity remains strong at Rs 36,460 crore which includes cash & cash equivalents of Rs 10,799 crore.”
Steel Demand Broadly Stable
Tata Steel’s U.K. revenues stood at £646 million and EBITDA loss came to £91 million.
In case of liquid steel production as well as deliveries, they were 0.68 million tonnes.
Similarly, Netherlands revenues stood at £1,344 million and EBITDA for the quarter was £43 million.
If we consider on a per tonne basis then the EBITDA improved by £48 per tonne on a QoQ basis,
Its liquid steel production was 1.69 million tonnes. At the same time, deliveries were at 1.47 million tonnes, up on QoQ and YoY basis.
It is noteworthy here that the steel manufacturing firm commenced the closure of heavy end assets at Port Talbot with the shutdown of Blast Furnace (BF) 5 in early July 2024.
Moving ahead, the closure of BF 4 is scheduled for September 2024.
“During the quarter, subdued steel demand across most regions weighed on global steel prices. In India, steel demand was broadly stable despite some impact due to elections and heat waves. In India, our crude steel production was up 5% YoY to around 5.3 million tons. Deliveries at around 4.9 million tons were the ‘best ever 1Q’ sales aided by 4% YoY growth in domestic deliveries,” said T.V. Narendran, Chief Executive Officer & Managing Director.
