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News Topical, Digital Desk : Metal sector company Tata Steel has released its June quarter results after market closed on Wednesday. During April-June, the company's income was Rs 53,178 crore, while EBITDA was Rs 7,480 crore. During this period, the company's margin is around 14%. EBITDA grew by 11% on quarterly basis and 10% on yearly basis.
Giving information about its Indian business, this Tata Group company said that the income from here was Rs 31,137 crore and EBITDA was Rs 7,486 crore, with a margin of 24%.
Growth in EBITDA per tonne too
In the June quarter, the company's EBITDA per tonne increased by Rs 2,510 on a quarterly basis to Rs 15,760 per tonne. In this quarter, the production of crude steel was 5.24 million tonnes and delivery was 4.75 million tonnes. Production and delivery were affected due to maintenance at Jamshedpur and Neelanchal Steel Corporation Limited, but the situation is expected to be normal in the coming quarters.
How was the performance of UK and Netherlands business?
- UK: Revenue was 536 million pounds, while EBITDA loss was 41 million pounds, narrowing from the loss of 80 million pounds in the previous quarter. Deliveries stood at 0.60 million tonnes due to low demand.
- Netherlands: Revenue was 1,519 million euros and EBITDA was 64 million euros, up from 14 million euros in the previous quarter. Liquid steel production was 1.70 million tons and deliveries were 1.50 million tons.
How much was the capex?
The company has reported a capex of Rs 3,829 crore in this quarter. The 5 MTPA blast furnace at Kalinganagar is working well. One of the two continuous galvanizing lines at the 2.2 MTPA CRM complex has been started. EAF construction is underway in Ludhiana. The groundbreaking ceremony for the largest low-carbon steelmaking facility in the UK was held at Port Talbot on 14 July. Tata Steel has a net debt of Rs 84,835 crore as of the June quarter.
What did the management say?
Tata Steel CEO and Managing Director T.V. Narendran said, "Despite global volatility and uncertainty, Tata Steel has shown strong profitability across all segments. Our improved performance in Q1 on a quarterly and year-on-year basis is due to the increase in steel prices and cost reduction. We are also expanding in the digital market through e-commerce platforms like Aashiyana and DigECA, whose annual gross trade value has increased by 52% to Rs 5,400 crore. Our mining activities ensure secure supply of raw materials."
Tata Steel: Stock Performance
The stock closed at Rs 161.30 per share after falling a quarter per cent in Wednesday's session just before the results were released. The stock has gained 23% in the last 6 months. Tata Steel's 52-week high is Rs 170.18 and lowest is Rs 122.62 per share.
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