Tata Steel Q2 Results: Profit jumps nearly 4 times, meets Street expectations; revenue grows 9%

Tata Steel on Wednesday reported a consolidated net profit of Rs 3,102 crore for the quarter ended September 30, in line with analyst estimates.

The net profit marked a 3.7 times jump over its net profit for the corresponding period a year ago.

Revenue grew 8.9 per cent on a year-on-year basis to Rs 58,689 crore, according to a regulatory filing.

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Both revenue and profit exceeded analyst expectations.

According to Zee Business research, the Tata group steelmaker was estimated to register a net profit of Rs 3,059 crore with Rs 54,934 crore in the top line.

The steelmaker’s India revenue stood at Rs 34,787 crore and EBITDA at Rs 8,654 crore, translating to a margin of 25 per cent, it said.

Crude steel production increased 8 per cent sequentially to 5.65 million tonnes while deliveries increased 17 per cent to 5.55 million tonnes, aided by rise in domestic deliveries, Tata Steel added.

Tata Steel said it spent Rs 3,250 crore on capital expenditure during the quarter and its net debt stood at Rs 87,040 crore.

Tata Steel CEO and MD TV Narendran said the global operating environment remained challenging with persistent overhang of tariffs, geopolitical tensions and elevated steel exports, and yet, the company delivered a resilient performance with a second straight quarter of improvement in its EBITDA margin.

“In India, while the crude steel production rose 8%, deliveries grew at a higher rate of 17 per cent QoQ as our marketing franchise enabled us to scale effectively. We continue to strengthen our market leadership across key segments, underpinned by capacity expansion and a focused downstream strategy,” he said.

Tata Steel reported Rs 9,106 crore in consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA), marking a rise of 46 per cent over the year-ago period.

Its margin — a key measure of profitability — improved to 16 per cent from 11.4 per cent.

The company has continued to perform despite the challenging operating environment, said Koushik Chatterjee, ED and CFO, Tata Steel.

Earlier on Wednesday, the Tata Steel stock closed 1.3 per cent lower at Rs 178.7 apiece on BSE.

At this level, the Tata group stock has risen almost 31 per cent so far this year, outperforming the Nifty50 and Nifty Metal indices’ gains of nine per cent and 22 per cent, respectively.