Home / Companies / Company Results /  Tata Steel Q2 results: Consolidated PAT dips 87% to 1,514 cr, misses estimate
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Homegrown steel major Tata Steel on Monday reported a consolidated profit after tax (PAT) of 1,514 crore for the quarter ended September 2022 on the back of higher costs and weak operational performance amid a global economic slowdown. The PAT was lower by 87% compared to a profit of 11,918 crore recorded during the same quarter last year.

On a sequential basis, the PAT witnessed a decline of 80% from 7,764.96 crore achieved during the April – June quarter.

Analysts estimated the PAT for Tata Steel to be around 3,000 crore, and consolidated revenues about 56,900 crore.

The country's leading steelmaker's revenue from operations declined 0.8% to 59,877.52 crore for the period under review as compared to 60,387.13 crore in the year-ago period.

The company's consolidated adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) dipped 62% on year to 6,060.4 crore.

"Concerns about slowdown in key economies, persisting geopolitical issues coupled with seasonal factors led to a volatile operating environment. Despite these headwinds, Tata Steel registered best ever domestic sales in India enabled by a strong product portfolio and an extensive distribution network which services end to end requirements in chosen segments," said TV Narendran, CEO and MD of Tata Steel.

"Utilisation of high-cost inventory of raw material and steel coincided with drop in realisations to result in margin decline across geographies," Chief Financial Officer Koushik Chatterjee said.

Tata Steel Board has approved the amalgamation proposal of seven listed and unlisted entities into Tata Steel, a value accretive merger with multiple benefits, the company said in a BSE filing.

Meanwhile, rival JSW Steel posted a surprise quarterly loss earlier this month as the metal's prices slumped, and said that imposition of export duty on finished steel products in May had made overseas shipments unattractive.

On Monday, ahead of the results, Tata Steel shares closed 0.49% lower to settle at 101.10 apiece on NSE. The Tata Group stock has been falling for the last 2 sessions. The large cap stock has lost 23.29% in a year and fallen 9.13% in 2022.

ABOUT THE AUTHOR

Meghna Sen

Meghna Sen is a deputy chief content producer at Livemint where she tracks companies, markets, news. She has 5+ years of experience with online and print publications. Email: meghna.sen@htdigital.in
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