Tata Steel announced an unexpected consolidated net loss of ₹2,224 crore for the third quarter ended 31 December 2022 on Monday (Q3FY23). This is a 76% decrease from the equivalent quarter previous year’s earnings of ₹9,572 crore.
The steel manufacturing company’s revenue from operations fell 6% to ₹57,083.56 crore in the fiscal year under review, from ₹60,783 crore the previous year.
The steelmaker’s costs increased to ₹57,172.02 crore in the current quarter from ₹48,666.02 crore the previous year.
For the December quarter, consolidated EBITDA was ₹4,154 crore, with an EBITDA margin of 7%. Profitability was harmed by a substantial reduction in European realisations and spreads.
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 period under review, the company’s India division reported a profit of ₹1,918 crore and revenue of ₹32,325 crore.
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.”
Tata Steel shares finished 2.62% down on Monday, ahead of the results, at ₹117.20 per share on the NSE.
. This is a 76% decrease from the equivalent quarter previous year's earnings of ₹9,572 crore.){kind=link}