NEW DELHI: Higher revenue from operations has propelled Tata Steel’s April-June 2017 quarter consolidated net profit to Rs 921.09 crore compared with a consolidated net loss of Rs 3,183 crore in the year-ago period.“Our sales were up by 28 per cent on a y-o-y basis as the smooth ramp up of our Kalinganagar facility helped us increase our volumes and increase our market share,” T V Narendran, Managing Director, Tata Steel India and South East Asia said in a statement.
The consolidated revenue from operations during the quarter under review was Rs 30,973 crore, registering an increase of 19 per cent.“We saw strong growth in our branded products, retail and solutions segment which increased 19 per cent y-o-y and now contributes around 48 per cent of overall revenues,” Narendran added.
However, consolidated total expenses shot up to Rs 28,844 crore over Rs 25,003.7 crore in the year-ago period. “From a sequential perspective, there was inventory destocking across the channel in the run-up to the GST implementation, which led to a drop in volumes. While realisations were under pressure during the quarter, we are seeing a recovery in prices on the back of stronger domestic demand and better international prices,” Narendran said.
The company said gross debt at Rs 87,812 crore as on June 30, 2017 went up by nearly Rs 4,798 crore from the previous quarter on account of forex impact, inventory buildup in India as a result of GST implementation and seasonal trends in Europe.“We expect the drop in rates and inflation to trigger a consumption cycle which will help our retail business and overall steel demand.” he added.