NEW DELHI: Tata Steel, the country’s largest private steelmaker, reported a net profit of Rs 3,302 crore in September 2019 quarter, a rise of 5.97 per cent Y-o-Y backed by one-time gains and a favourable tax regime. Consolidated total income of the company declined to Rs 34,762.73 crore in the July-September quarter from Rs 41, 257.66 crores in the year-ago period, Tata Steel said in a filing to BSE.
During the quarter, the company had received a tax credit of Rs 4,050 crore against tax expenses of Rs 2,316.8 crore in the same period last fiscal. At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) plunged 56.6 per cent to Rs 3,819.5 crore YoY, and margin contracted sharply to 11.1 per cent in the quarter ended September 2019, from 21.5 per cent reported in the year-ago period.
Standalone net profit of the company stood at Rs 3,400 crore, 1.25 per cent higher than the Rs 3,358 crore it reported last year.
“In India, steel production remained flat on a sequential basis in Q2 at 4.5 million tonnes because of the sharp slowdown in the automotive sector, particularly in the commercial vehicle segment. But steel deliveries grew four per cent QoQ to 4.13 million tonnes,” it said.
Europe sales volumes increased by 1.2 per cent QoQ to 2.29 million tonnes during the quarter and its Europe liquid steel production was impacted by weak market conditions, it added.
“Tata Steel worked closely with customers across business segments to drive sales and maintain volumes. We are focused on driving productivity improvements across our various operations as well as the supply chain to reduce costs and minimize the impact on margins,” said T V Narendran, CEO and MD, Tata Steel.