Moneycontrol
Get App
Last Updated : Feb 08, 2019 06:22 PM IST | Source: Moneycontrol.com

Tata Steel Q3 profit surges 53% YoY to Rs 1,751 crore; India biz revenue up 10%

The revenue has risen 23 percent at Rs 41,219 crore versus Rs 33,446.6 crore that was posted by the company last year.

Moneycontrol News @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Tata Steel reported a surge of 53 percent (year on year) in its net profit for the December quarter at Rs 1,751 crore. The company had reported a profit of Rs 1,144 crore during the same quarter of last year.

The revenue has risen 23 percent at Rs 41,219 crore versus Rs 33,446.6 crore that was posted by the company last year.

At an operating level, the earnings before interest, taxes, depreciation and amortization (EBITDA) rose 18 percent to Rs 6,723.9 crore against Rs 5,697 crore reported last year.

Close

The operating margin came in marginally lower at 16.3 percent against 17 percent last year.

“The market environment for the industry was challenging during the quarter with softening of steel prices," said Koushik Chatterjee, Executive Director and CFO. "Our consolidated gross debt has declined by Rs 9,083 crores during the quarter including de-leveraging of over Rs.6,000 crore," he added.

Sale of its 70 percent stake in units in South East Asia, will further help the company bring down its debt.

By region

On geographies, India business revenue rose 10 percent at Rs 17,173.9 crore against Rs 15,595.8 crore last year.

The Europe business revenue rose 8 percent at Rs 15,850.5 crore against Rs 14,692.7 crore in the corresponding quarter of last year.

Meanwhile, rest of the world business revenues grew 39.6% at Rs 202.1 crore against Rs 144.7 crore last year.

Outlook

While the industry saw steel demand and prices softening, the company expects both to pick up in the fourth quarter.

The company expects domestic demand to recover, aided by an improving liquidity position in the economy.

"Regional steel prices have seen a marginal up-tick and are expected to improve further driven by expected demand pick-up in China post Chinese new year holidays; recently announced demand stimulating measures should also aid recovery," said the company in a presentation.

 

Subscribe to Moneycontrol Pro and gain access to curated markets data, exclusive trading recommendations, independent equity analysis, actionable investment ideas, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more.
First Published on Feb 8, 2019 04:57 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant