NEW DELHI: Mirroring the global surge in commodity prices and demand, India’s major private sector steel manufacturer Tata Steel posted strong second quarter numbers as consolidated profits jumped 7.5 times year-on-year to Rs 12,548 crore in the quarter-ended 30 September 2021. On a quarter-on-quarter basis, profits witnessed a 28.5% growth.
The consolidated revenue during the quarter grew 54% year-on-year and 13% quarter-on-quarter to Rs 60,283 crore. In the corresponding quarter last year, the company had posted revenues of Rs 39,000 crore.
The adjusted consolidated operating profit (Earnings before interest depreciation and tax) of the company more than trebled to Rs 17,810 crore during the quarter compared with that of last year.
On a quarter-on-quarter basis, the company’s operating profit grew 12%.
The consolidated free cash flow was Rs 3,322 crore during the quarter despite an increase in working capital of Rs 3,889 crore and dividend payment of Rs 3,020 crore.
It also reduced its gross debt to Rs 78,163 crore with repayments of Rs 11,424 crore in the first half of 2021-22. Tata Steel’s consolidated net debt to equity stood at 0.79x at the end of second quarter.
According to a statement issued by the company, it spent Rs 2,191 crore on capex during the quarter.
This included work on the pellet plant, the cold roll mill complex and the 5 MTPA expansion of the Kalinganagar plant.