Tata Steel witnessed a 0.21 per cent increase in share price after the company announced its Q1FY24 financial results. The quarterly report highlighted an optimistic outlook for its Indian operations, which contributed to 57 per cent of Q1 FY24 revenues.

In the June quarter, the company’s net profit dropped to ₹525 crore from ₹7,714 crore in the previous year. This decline was due to lower production and realisations, resulting in a 6 per cent decrease in revenue to ₹59,490 crore. Expenses also increased to ₹58,553 crore.

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According to a report by Centrum Broking, the adjusted consolidated EBITDA for Tata Steel declined by 14 per cent QoQ, mainly due to lower sales volume and higher production costs. However, the company reported an impressive performance in its India operations, with an adjusted operating profit of ₹74 billion.

The adjusted EBITDA per tonne stood at ₹16,024, down 4 per cent QoQ, owing to a 7 per cent decline in sales and increased operating costs, primarily attributed to rising coking coal consumption costs and higher royalty expenses.

Tata Steel remains committed to addressing challenges in the European market, with a focus on enhancing its product mix portfolio and earnings. The Netherlands facility is expected to resume operations by the end of Q2FY24 after temporarily shutting down.

The company’s strategic expansions, including the commissioning of a pellet plant and CRM facility in India, are anticipated to impact earnings positively. Additionally, the Kalinganagar Phase 2 expansion and contributions from NINL are expected to bolster overall volumes and profitability.

The shares went up by 0.21 per cent to ₹119 at 12:44 p.m. on BSE.

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