BackTata Steel Q3 net loss at ₹2,224 cr, down 76% as recession fears weigh on steel prices
Tata Steel Q3 results: On Monday, ahead of the results, Tata Steel shares closed 2.62% lower to settle at ₹117.20 apiece on NSE
PremiumSteel major Tata Steel on Monday reported a surprise consolidated net loss of ₹2,224 crore for the third quarter ending 31 December, 2022 (Q3FY23). This is a decline of 76% from ₹9,572 crore profit posted in the corresponding quarter of last year.
The steel production company's revenue from operations declined 6% to ₹57,083.56 crore for the period under review as as compared to ₹60,783 crore in the year-ago period.
The steel major's expenses rose to ₹57,172.02 crore in the quarter under review from ₹48,666.02 crore in the year-ago period.
Consolidated EBITDA came in at ₹4,154 crore for the December quarter, with an EBITDA margin of 7%. The profitability was affected by sharp drop in realisations and spreads in Europe.
On Europe business, Tata Steel CEO and and MD TV Narendran said, “Our deliveries were lower in 9MFY23 due to slowdown in demand. Recession concerns weighed on steel prices, which coupled with elevated energy costs affected our performance."
"Tata Steel has delivered steady growth in India volumes despite the volatile operating environment. Domestic deliveries stood at around 13.7 million tons in the first nine months of the financial year and were up 4% YoY," Narendran said.
The Tata Steel CEO added, “We are presently expanding our capacities across multiple sites at Tata Steel Kalinganagar, Neelachal Ispat Nigam Limited and the Electric Arc Furnace at Ludhiana in Punjab and at our downstream plants across India."
For the company's India business, it has posted a profit of ₹1,918 crore and a revenue of ₹32,325 crore for the period under review.
Koushik Chatterjee, Executive Director and Chief Financial Officer, said, “Global steel prices have witnessed steady moderation amidst inflationary pressures and concerns about economic slowdown in the first nine months of the financial year."
On Monday, ahead of the results, Tata Steel shares closed 2.62% lower to settle at ₹117.20 apiece on NSE.
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