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Tata Steel’s 1QFY23 consolidated revenues jump 18.6% YoY to Rs 63,430 cr

Tata Steel’s 1QFY23 consolidated revenues jump 18.6% YoY to Rs 63,430 cr

Bhubaneswar, July 25, 2022: Tata Steel today declared its financial results for the 1QFY23 quarter. The Company’s consolidated turnover rose by 18.63% to Rs 63,430 crore during the first quarter of the current financial year as compared to Rs 53,465 crore of 1QFY22. The Company’s Consolidated Profit after tax stood at Rs.7,714 crores during the 1QFY23.

The Company’s EBITDA margin increased QoQ from 22% to 24% and EBITDA per ton increased from Rs 18,937 to Rs 22,717. Consolidated PAT for the quarter stood at Rs 7,714 crores.

In India, Standalone revenue stood at Rs 32,021 crores and EBITDA was Rs 9,616 crores. In Europe, the Company achieved highest ever quarterly EBITDA of £621 million, which translates to an EBITDA per ton of £290.

T V Narendran, Chief Executive Officer & Managing Director, Tata Steel, said: This has been a challenging quarter for the Global and Indian economy with rising interest rates, supply chain constraints and slowdown in China due to COVID. Despite these multiple headwinds, Tata Steel has delivered a strong performance with an improvement in margins. We continue to progress on our sustainability journey and are committed to being net zero by 2045.”

Tata Steel India’s Revenue per ton rose by Rs. 8,534 QoQ to Rs. 83,625 per ton due to long term contracts and product mix. Reported EBITDA stood at Rs.9,582 crores, which translates to an EBITDA per ton of Rs 23,557.

“Our strong marketing franchise and superior business model in India enabled us to successfully pivot and increase our domestic deliveries to counter the 15% duty imposed on steel exports in the middle of the quarter. We continue to drive value accretive growth in India backed by investments in customer relationships, brands and distribution networks and remain well positioned to benefit from the buoyant automotive & retail housing demand and the government spend on infrastructure,” Narendran said.

Tata Steel is geared towards commissioning the 6 MnTPA pellet plant at Kalinganagar in 3QFY23 which will drive cost savings followed by the CRM complex and the 5 MnTPA expansion project. Tata Steel Long Products, a subsidiary of Tata Steel, has completed the strategic acquisition of Neelachal Ispat Nigam Limited and will drive growth of the Company’s long products business.

Koushik Chatterjee, Executive Director and Chief Financial Officer, said: “Tata Steel continues to deliver operationally and financially despite the complex operating environment, sudden impact of regulatory changes and the heightened volatility in commodity prices. We expect that volatility in terms of steel price and input cost movement to continue in the next quarter but expect the spreads to stabilise in the second half of the year. We spent Rs 2,725 crores on capital expenditure in line with our annual capex guidance as we progress on our Kalinganagar expansion.”

“The volatility in commodity prices and immediate impact of the export duty in India have led to an increase in working capital but our cost improvement and other initiatives along with expected pickup in demand in the second half of the year should result in normalisation of working capital. In spite of significant working capital pressures, the Net debt stood at Rs 54,504 crores and our financial metrics continue to remain strong with Net debt to EBITDA <1.0x. We remain committed to our annual deleveraging target of $1 billion in line with our capital allocation strategy to reduce our debt. I am happy to report that the 10:1 stock split has received the necessary approvals and the Company has set 29th July, 2022 as the record date to give effect to the split,” Chatterjee added.


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