Tata Steel’s first quarter result cosolidated net profit fell 92% year-on-year to Rs 634 crore for the first quarter ende June. The company had reported a profit of Rs 7,765 crore in the year-ago period.
Revenue from operations fell 6% to Rs 59,490 crore in the first quarter, compared with Rs 63,430 crore in the same quarter of last year.The reported profit was down 63% quarter-on-quarter, while revenues dropped 5% when compared with the preceding quarter.The Board has approved the re-appointment of T V Narendran as CEO and MD for another five years, effective September 19.The re-appointment is subject to approval of the company’s shareholders. Narendran’s present tenure as CEO and MD will conclude on September 18.The company said its profitability was affected by non-cash deferred tax charge on account of buy-in transaction at British steel pension scheme.Consolidated EBITDA for the quarter stood at Rs 6,122 crore, down 59% from a year-ago.Revenues from the India business rose by a marginal 3% to at Rs 34,901 crore during the quarter under review. India EBITDA was at Rs 7,514 crore, a decline of 22%. This translates into EBITDA per ton of Rs 15,651 and margin of 22%.Crude steel production was around 5 million tonne and was up 2% YoY, primarily driven by ramp up at Neelachal Ispat Nigam Ltd (NINL). Deliveries stood at 4.8 million tonne, higher by 18% on YoY basis, driven by rise in domestic deliveries.The Europe business recorded a turnover of £2,083 million and EBITDA loss stood at £153 million.”The planned relining of BF6 at Tata Steel Netherlands commenced in April and this has led to drop in crude steel production,” the company said in a statement.Liquid steel production from Europe was 1.79 million tonne, while deliveries stood at 1.99 million tonne.”NINL has begun to stabilise and is operating close to rated capacity within just 9 months of acquisition. The 5 MTPA expansion at Kalinganagar is underway with facilities getting commissioned in a phased manner,” said Narendran, CEO and MD, Tata Steel.The company has spent Rs 4,089 crore on capital expenditure during the quarter. The net debt stands at Rs 71,397 crore at the end of June quarter, while group liquidity was at Rs 30,569 crore.On Monday, Tata Steel shares closed 1.16% lower at Rs 115.25 on NSE.