Tata SteelNSE 3.11 % on Friday posted a 54.31 per cent year-on-year (YoY) increase in consolidated net profit at Rs 1,753 crore for the December quarter. Net profit was Rs 1,136 crore in the same quarter last year. The company announced its results post market hours. The stock closed 3.70 per cent down at Rs 469.55. Below are five key takeaways from the quarterly numbers:
Turnover: Consolidated revenue for the quarter jumped 23 per cent YoY to Rs 41,220 crore, with India sales rising 41 per cent to Rs 22,063 crore, the company said in a regulatory filing.
Production: Steel production (India) grew by 34 per cent YoY to 4.38 million tonnes (mt) with the acquisition and ramp-up of Tata Steel BSL. Deliveries stood at 3.89 mt and now account for more than 55 per cent of consolidated volumes.
Management-take: T V Narendran, CEO and MD, said, "Tata Steel is committed to growing its India footprint while focusing on benchmark operational performance, superior market presence, strong customer relationships and sustainability. Despite a sharp drop in international steel prices, we were able to maintain our overall realisations and increase our volumes significantly in India. The integration of Tata Steel BSL continues and our 5 MTPA expansion at Tata Steel Kalinganagar is also making good progress. We are also looking forward to enhancing our long products and downstream capability through the acquisition of the 1 mtpa steel business of Usha Martin. The phase II review of the TSE ThyssenKrupp JV is ongoing and we are closely working with the European Commission to facilitate the same."
Liquidity: The liquidity position of the group remained robust at Rs 19,320 crore consisting of Rs 8,549 crore in cash and cash equivalents and Rs 10,771 crore in undrawn bank lines, the company added.
Ebitda: Consolidated adjusted Ebitda increased 27 per cent to Rs 7,225 crore compared with Rs 5,671 crore a year earlier.