Strong growth in revenues following robust demand from the automotive sector led to more than doubling of net profit of Tata Steel during the December 2021 quarter, despite a sharp increase in expenses.
The company posted a consolidated net profit of ₹9,589.16 crore, a growth of 139 per cent, as against ₹4,010.94 crore in the same quarter last year.
Total consolidated income grew to ₹60,842.72 crore, an increase of 44 per cent, compared to ₹42,152.87 crore posted in the same period last year. Expenses jumped 33 per cent to ₹48,666 crore during the reporting quarter following an unabated rise in raw material costs like that of coal and also an increase in working capital.
The company spent ₹2,790 crore on capital expenditure during the quarter and ₹6,416 crore during the nine months. Its gross debt decreased to ₹72,603 crore with repayments of ₹17,376 crore during the nine months ended December, 2021. Net debt declined to ₹62,869 crores
T V Narendran, Chief Executive Officer and Managing Director, Tata Steel, said, “India steel demand has begun to improve on the back of continued economic recovery as the third wave of Covid-19 begins to ebb. We continue to drive value accretive growth in our chosen segments and our performance in key segments such as auto was robust despite the sector being impacted by the semiconductor shortage. Our European operations continue to perform underpinned by strong improvement in realisations.”
In January, Tata Steel Long Products was declared the winning bidder for Neelachal Ispat Nigam. The company will pay ₹12,100 crore for the state-run company. “This will enable us to significantly ramp up our long products portfolio and benefit from the growth in infrastructure in India and retail housing growth in semi urban India,” Tata Steel said in a statement