Tata Steel Q1 Results: Profit Falls 13%, But Beats Estimates Despite Decline In Deliveries
Tata Steel's deliveries in the quarter ended June stood at 4.07 million tonnes, down 2% compared with a year earlier.
Tata Steel Ltd.'s first-quarter profit fell as costs surged and exports dropped after India imposed a levy. Still, it beat estimates.
The steel maker's consolidated profit declined 13% over a year earlier to Rs 7,765 crore in the April to June quarter. That compares with Bloomberg's consensus estimate of Rs 7,275 crore.
Other Highlights (YoY)
Revenue up 19% at Rs 63,430.1 crore. Analysts expected Rs 60,474.2 crore
Operating profit fell 7% to Rs 14,972.8 crore.
Ebitda margin at 24% against 30%.
Deliveries for India business stood at 4.07 million tonnes, down 2% compared with the corresponding quarter of previous fiscal.
This was due to moderation in exports following the imposition of 15%
export duty, the company said in a statement. "Consequently, domestic deliveries were successfully ramped up by leveraging our strong marketing network and agile business model."
Chief Financial Officer Koushik Chatterjee expects volatility in steel prices and input cost movement to continue in the next quarter but seeds spreads stabilising in the second half of the year.
"We spent Rs 2,725 crore on capital expenditure in line with our annual
capex guidance as we progress on our Kalinganagar (Odisha) expansion," he said in the statement.
Other Highlights (YoY)
Consolidated Ebitda per tonne fell 0.3% to Rs 22,717.
Consolidated deliveries stood at 6.62 million tonnes versus 7.11 MT in three months ended June 2021.
Net debt stood at Rs 54,504 crore in quarter ended June 2022.
"Our European business delivered a sharp improvement in performance as long-term contracts and product mix helped drive a strong increase in
realizations," TV Narendran, managing director and chief executive officer, said.
Peer JSW Steel Ltd. also reported an 86% decline in profit over a year earlier amid global fall in prices and the imposition of export duty on certain steel exports in May.
Shares of Tata Steel ended 3.06% higher before the results were announced compared with a 0.65% fall in the benchmark Nifty 50.