Tata Steel Back in the Black with 232-cr Net
Strong performance in home market helps co beat street estimates in Q3
Kolkata: Tata Steel bounced back to the black in the third quarter with a better-than-expected consolidated net profit of .₹ 232 crore, led by strong performance at the home market in India.
Analysts in a Reuters poll were on average expecting a profit of .₹ 174 crore for the October-December quarter. A year earlier, it had posted a .₹ 2,748 crore loss. Consolidated turnover rose 14% to .₹ 29,392 crore. On a standalone basis, Tata Steel’s net profit jumped more than four-fold to .₹ 1,205 crore from .₹ 298 crore a year earlier, on the back of higher steel sales and expansion in automotive steels business. “While the broader market was affected by lower rural sales and adverse consumer sentiments, we were able to increase overall volumes by 14% sequentially and register strong growth across all our customer segments,” managing director for India and Southeast Asia TV Narendran said. Focus on cost improvement and integrated operations helped the company contain the impact of rising raw material prices, he added.
“The financial performance reflects strong underlying operating performance across the group in spite of a seasonally slow quarter in Europe,” said Koushik Chatterjee, its group executive director for finance and corporate.
Ahead of the results announcement, shares closed 0.14% higher at .₹ 473.25 on the BSE.