Tata Steel has reported that its net profit in the June quarter was up 75 per cent at ₹919 crore, against ₹525 crore logged in the same period last year, due to lower costs despite a fall in realisation.
Income was down at ₹55,031 crore (₹60,666 crore), while revenue from operations dipped to ₹54,771 crore (₹59,490 crore). The company’s EBITDA was down at ₹6,950 crore (₹6,238 crore), while EBITDA per tonne was lower at ₹9,407 (₹8,664).
During the quarter, the company converted $565 million of outstanding loans of T Steel Holdings into equity. Subsequently, loans of ₹4,709 crore have been recorded as investment in equity shares, said the company.
Overall cost of operations was down 11 per cent at ₹52,389 crore (₹58,553 crore). Tata Steel has made an additional provision of ₹177 crore for European operations restructuring and contributed ₹175 crore to electoral trust.
On a standalone basis, net profit was down 36 per cent at ₹3,329 crore (₹5,214 crore) as revenue from operations dipped to ₹32,959 crore (₹35,487 crore).
The company has signed an agreement with group company Tata Power Renewable Energy to acquire a 26 per cent stake in TP Parivart for ₹35 crore.
Tata Steel will infuse ₹6,000 crore in its subsidiary Neelachal Ispat Nigam in this fiscal to aid its growth plans.
UK revenues were £646 million, and the EBITDA loss was £91 million. Netherlands revenues were £1,344 million and EBITDA for the quarter was £43 million.
Tata Steel has completed shutting down one of the blast furnaces in the UK, and the remaining will be closed by September.
TV Narendran, Managing Director of Tata Steel, said subdued steel demand across most regions weighed on global steel prices, which were broadly stable in India despite some impact from elections and heat waves.
In the UK, he said the company is committed to supporting affected employees and providing multiple training and community support schemes. The Voluntary Redundancy Aspiration process, launched in July, will close on August 7.
While the 5 mtpa expansion at Kalinganagar is expected to be completed in September, the Continuous Annealing Line of the 2.2 MTPA CRM complex will start in August.
The company has invested ₹3,777 crore in ongoing projects during the quarter. Net debt stands at ₹82,162 crore. The group liquidity position remains strong at ₹36,460 crore.