News18» News»Business»Tata Steel Reports Q3 Net Profit at Rs 4,010 Crore; Revenue Stands at Rs 39,809 Crore
1-MIN READ

Tata Steel Reports Q3 Net Profit at Rs 4,010 Crore; Revenue Stands at Rs 39,809 Crore

File photo

File photo

The company's EBITDA/tonne, which is a key measure of production efficiency, reached Rs 18,931.

Tata Steel Ltd reported a net profit of Rs 4010 for the December 2020 Quarter,witnessing a sharp bounceback on the back of higher metal prices and domestic sales. However, the European operations of the company continued to underperform. The consolidated revenue of the company stood at Rs 39,809 crore after an increase of 11 percent in Q3FY21. India's second-largest steelmaker posted a loss of Rs 1,228 crore in the same quarter a year ago. The numbers reported are far ahead of the estimates.

According to a forecast by the Bloomberg poll of 15 analysts, the profit of the company was estimated to be at Rs 3,227.60 crore. Also, 14 analysts had predicted that the revenue of the company will be at Rs 38, 982.40.

Tata Steel achieved its highest ever quarterly domestic EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 8,811 crore, rising 2.14 times on a yearly basis. The gain was driven by higher prices, better product mix, lower exports and operating efficiency initiatives.

The company's EBITDA/tonne, which is a key measure of production efficiency, reached Rs 18,931 followed by the EBITDA margin, which stood at 34.9 percent. The domestic crude steel production of the company registered a 3 percent growth year-on-year and remained strong at 4.6 million tonnes.

RELATED NEWS

The company on January 29had announced that its talks with Swedish firm SSAB steel for a potential sale of part of its European operations had fallen through. And further informed that following the termination of the discussions with SSAB on Tata Steel Netherlands (TSN), the company will be focusing on performance and cash flows in the immediate term.

According to a preliminary report by Edelweiss Securities, Tata Steel Europe reported EBITDA/tonne of USD 46 against the loss of USD 27 in the preceding quarter. The report added that Tata Steel will continue to prioritise capital expenditure and has spent Rs 1,394 crore on capex during the quarter and will restart work on pellet plant and cold roll mill complex at Tata Steel Kalinganagar.