Tata Steel Q2 Results FY2023, Net Profit at Rs. 1297 crores

On 31st October 2022, Tata Steel announced its second quarter results for the period ending 30th September 2022. 

Q2FY23 Performance updates:

- Revenues stood at Rs 59,878 crores 
- Consolidated EBITDA at Rs 6,271 crores, with an EBITDA margin of ~10%
-  Profit after tax stood at Rs.1,297 crores.

Business Highlights:

- The 6 MTPA Pellet plant will be commissioned in Q3FY23 and will be followed by the Cold Roll Mill complex in phases. The 5 MTPA expansion at Kalinganagar is on track for commissioning by the end of FY24.
- Neelachal Ispat Nigam Limited’s blast furnace was restarted in October, within 3 months of the completion of the acquisition, and is being ramped up.
- Tata Steel Board has approved the amalgamation proposal of seven listed and unlisted entities into Tata Steel, a value accretive merger with multiple benefits.
- Work has commenced on setting up a 0.75 MTPA Electric Arc Furnace (EAF) in Punjab, which will leverage the growth in the construction segment and is an important milestone in our transition to net zero.
- In Indian markets, deliveries were higher by 21% QoQ and 7% YoY primarily driven by record domestic deliveries. Turnover was Rs 34,114 crores. In India, the company reported EBITDA stood at Rs.4,907 crores, which translates to an EBITDA per ton of Rs 9,986.
- In European markets, deliveries were lower on a QoQ basis, in part due to seasonal factors and subdued demand in Europe. Turnover was £2,307 million and EBITDA was £199 million, which translates to an EBITDA per ton of £106.

Commenting on the results, Mr. T V Narendran, Chief Executive Officer & Managing Director said: “Concerns about a slowdown in key economies, persisting geopolitical issues coupled with seasonal factors led to a volatile operating environment. Despite these headwinds, Tata Steel registered the best-ever domestic sales in India enabled by a strong product portfolio and an extensive distribution network which services end-to-end requirements in chosen segments. Our 6 MTPA pellet plant at Kalinganagar is coming onstream shortly and will deliver significant benefits by reducing costs. We will begin the phased commissioning of the 2.2 MTPA state-of-the-art Cold Rolling Mill complex and the 5 MTPA capacity expansion at Kalinganagar thereafter. Despite multiple challenges, we were successful in commissioning Neelachal Ispat Nigam Limited (NINL) within 3 months of acquisition and the ramp-up is progressing well. I am happy to announce that we have commenced work at our new 0.75 MTPA Electric Arc Furnace (EAF) at Punjab, strategically located in proximity to the market and the scrap-generating auto hub in North India. We will set up more EAFs in the country, which will enable capacity augmentation and along with NINL expansion, will drive growth in our high-margin retail business. Our EAF expansion is an important milestone in our sustainability journey and part of the multiple initiatives we are pursuing to achieve net zero by 2045. Further, in the Netherlands, Tata Steel along with its customers has embarked on the journey to be carbon neutral through Zeremis® – a flexible solution that lets you choose the carbon emission intensity reduction”.

Tata Steel share price dropped by 1.08%.