Analysts had expected the company to report consolidated net profit of Rs 3,458.5 crore on consolidated revenues of Rs 38,909 crore.
The company reported the highest-ever quarterly consolidated operating profit of Rs 9,540 crore, which was higher by 2.6 times from the year-ago quarter. The India business reported a 2.14 times increase in operating profit to Rs 8,811 crore in the December quarter.
The company said that the strong operating performance in India were driven by higher prices, better product mix, lower exports and operating efficiency initiatives. This translates into an operating profit per ton of Rs 18,931 and an EBITDA margin of 34.9%.
Tata Steel’s standalone business reported another quarter of strong performance as operating profit jumped 78 per cent year-on-year to Rs 6,737 crore. The standalone business’ operating profit per ton was at Rs 20,175 whereas operating margin stood at 37.5 per cent.
On the withdrawal of SSAB from talks to buy the Ijmuiden plant, Tata Steel said that the company will be focusing on performance and cash flows in the immediate term. “Tata Steel is committed to arrive at a strategic and sustainable resolution for its European portfolio,” the company said in an earnings statement.
Tata Steel said that during the December quarter, it reduced its debts by Rs 10,325 crore and for the nine-month period ended December, the company’s debt has gone down by Rs 18,609 crore.
“The recovery in the global and Indian economy has led to a sharp improvement in steel demand in India. We pivoted our deliveries to domestic markets, to cater to the requirements of our local customers by reducing exports,” said TV Narendran, chief executive officer and managing director of Tata Steel.
Tata Steel’s chief financial officer Koushik Chatterjee said that the company will further reduce gross debt by Rs 12,000 crore in the March quarter.
