The steelmaker’s consolidated profit of ₹2,318.15 crore for the fiscal first quarter beat analyst expectations. In India, which includes its standalone operations and NINL, profit surged more than 35% on-year.
NINL, a wholly-owned unit of Tata Steel, is set to be merged in the company. Tata Steel had announced a plan to add 4.8 million tonne capacity to this plant in December but announced the investment details on Thursday.
“This will enable Tata Steel to further expand the long products portfolio, especially in the retail space where our branded products are in high demand,” it said in a statement.
Consolidated total revenue for the June quarter rose more than 14% on-year to ₹60,412 crore, while earnings before interest, tax, depreciation, and amortisation (EBITDA) rose more than 25% to ₹9,370 crore. Consolidated EBITDA made on each tonne of steel climbed to ₹12,898 last quarter from ₹10,503 a year earlier.
In India, revenue grew nearly 19% to ₹36,989 crore, while EBITDA was 32% higher. The EBITDA made on each tonne of steel, meanwhile, rose to ₹19,162 from ₹15,760 a year ago.
“Global operating environment remained complex, with the impact of developments in West Asia on supply chains and input costs being more pronounced in the quarter,” said TV Narendran, chief executive. “Our overseas operations also had to navigate operational disruptions. Despite these headwinds, Tata Steel delivered a sequential improvement in EBITDA per ton for the third consecutive quarter.”In Tata Steel Netherlands, the EBITDA per tonne fell sharply to ₹279 from ₹4,074 a year ago, while in Tata Steel UK, the operating loss narrowed to ₹7,071 per tonne from ₹7,829 a year ago.
“UK narrowed its EBITDA loss…reflecting the impact of targeted improvement initiatives and better pricing supported by trade measures,” said Koushik Chatterjee, chief financial officer. “This improvement was achieved despite operational disruptions arising from the unfortunate pickle line fire.” “In Netherlands, the performance was impacted by the temporary shutdown of Direct Sheet Plant. We are progressing towards its restart in discussion with the local regulator,” he said.