Tata Steel Q2 Results: Consolidated PAT down 87% to INR 1,514, misses estimate| Roadsleeper.com

Tata Steel Q2 Results: Consolidated PAT down 87% to INR 1,514, misses estimate| Roadsleeper.com

Homegrown steel major Tata Steel on Monday reported a group profit after tax (PAT) of 1,514 crore for the quarter ended September 2022 due to higher costs and weak operating results amid a global economic slowdown. PAT was lower by 87% compared to a profit of 11,918 crore was recorded in the same quarter last year.

On a sequential basis, PAT saw a decline of 80% from 7,764.96 crore was achieved during the April – June quarter.

Analysts estimated PAT for Tata Steel to be around 3,000 crore and consolidated revenues of approx SEK 56,900 million.

The country’s leading steelmaker’s operating income fell by 0.8% more 59,877.52 crore for the period under review as compared to SEK 60,387.13 million in the previous year.

The company’s consolidated adjusted EBITDA (earnings before interest, tax, depreciation and amortization) fell 62% compared to the previous year. SEK 6,060.4 million.

“Concerns about a slowdown in key economies, persistent geopolitical issues coupled with seasonal factors led to a volatile operating environment. Despite these headwinds, Tata Steel recorded best-ever domestic sales in India thanks to a strong product portfolio and an extensive distribution network that services end-to-end requirements in select segments ,” said TV Narendran, MD and CEO of Tata Steel.

“The use of high-cost raw material and steel inventories coincided with reduced realizations to result in margin decline across geographies,” said Koushik Chatterjee, chief financial officer.

The Tata Steel Board has approved the proposal to merge seven listed and unlisted companies into Tata Steel, a value-adding merger with multiple benefits, the company said in a BSE filing.

Meanwhile, rival JSW Steel reported a surprise quarterly loss earlier this month as the metal’s prices fell, saying the introduction of export duties on finished steel products in May had made overseas shipments unattractive.

On Monday, ahead of the results, Tata Steel shares closed 0.49% lower to settle at 101.10 apiece on the NSE. Tata Group stock has fallen in the last 2 sessions. The major stock has lost 23.29% in one year and is down 9.13% in 2022.

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