Tata Steel received tax credit of Rs 4,050 crore durin the quarter against tax expenses of Rs 2,316.8 crore in same period last fiscal.
Tata Steel on November 6 reported a 6 percent year-on-year increase in the second quarter consolidated profit at Rs 3,302.31 crore, largely driven by tax writeback due to recent cut in corporate tax rate.
Its profit stood at Rs 3,116.2 crore in the corresponding period of the last fiscal.
Consolidated revenue from operations in Q2FY20 fell 15.44 percent to Rs 34,579.2 crore, the company said in its BSE filing.
Tata Steel received a tax credit of Rs 4,050 crore during the quarter against tax expenses of Rs 2,316.8 crore in the same period last fiscal.
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) plunged 56.6 percent to Rs 3,819.5 crore YoY, and margin contracted sharply to 11.1 percent in the quarter ended September 2019, from 21.5 percent reported in the year-ago period.
While addressing a press conference, the company's management said that India’s steel production remained flat on a sequential basis in Q2 at 4.50 million tonnes, but steel deliveries grew 4 percent QoQ to 4.13 million tonnes.
The company’s Europe sales volumes increased by 1.2 percent QoQ to 2.29 million tonnes during the quarter and its Europe liquid steel production was impacted by weak market conditions, they added.
"We aim to cut working capital and maximise cash to lower debt. We are focusing on unlocking value through cost and value addition," the management said.
The company's gross debt, as of September 30, stood at Rs 1.1 lakh crore.
Other income during the quarter fell 49 percent year-on-year to Rs 183.6 crore while finance cost dropped 12.5 percent to Rs 1,871.4 crore compared to the same period previous year.
Overall numbers were lower than analysts' expectations. A poll of analysts conducted by CNBC-TV18 had expected revenue of Rs 34,778 crore and EBITDA at Rs 4,205 crore with margin at 12.9 percent for the quarter.
The company's standalone profit increased 17.44 percent YoY to Rs 3,837.81 crore in Q2FY20 due to tax writeback of Rs 1,949 crore during the quarter (against tax expenses of Rs 1,747.70 crore in Q2FY19).Standalone revenue declined 17 percent to Rs 14,871.18 crore in quarter ended September 2019, against Rs 17,902.04 crore in corresponding period of the last fiscal.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.