Tata Steel Q1 net profit declines 21% on input costs
The Hindu
This was a challenging quarter with rising interest rates, supply chain constraints and slowdown in China due to COVID, says managing director Narendran
Tata Steel Ltd. reported a 21% decline in consolidated net profit for the first quarter ended June 30 to ₹7,714 crore, on account of a sharp rise in input costs, especially coking coal and gas prices in Europe.
Revenue stood at ₹63,430 crore. In India, standalone revenue was ₹32,021 crore.
The company said net debt stood at ₹54,504 crore.
In India, product deliveries were marginally lower by 2% due to moderation in exports following the imposition of 15% export duty.
It achieved its highest-ever quarterly EBITDA (earnings before interest, tax, depreciaton and amortisation) at £621 million.
“This has been a challenging quarter for the global and Indian economies with rising interest rates, supply chain constraints and slowdown in China due to COVID,” said Chief Executive Officer and Managing Director T.V. Narendran. “Despite these multiple headwinds, Tata Steel has delivered a strong performance with an improvement in margins,” he added.
“Our strong marketing franchise and superior business model in India enabled us to successfully pivot and increase our domestic deliveries to counter the 15% duty imposed on steel exports in the middle of the quarter. We... remain well-positioned to benefit from the buoyant automotive and retail housing demand and the government spend on infrastructure,” he said.
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