Jobaaj Stories
Steel manufacturing arm of Tata Group disappointed investors with poor quarterly results as the company’s quarterly profits reported a staggering 84% decline while annual profits fell around 81%.
For the quarter ended in March 2023, the company’s revenues stood at Rs 62,962 crores, down 9% YoY but up almost 10% on a sequential basis. Quarterly production improved around 2% to 7.8 million tonnes while quarterly EBITDA stood at Rs 7,225 crores, down 52%. Profits for Q4FY23 came in at Rs 1,566.24 crores, down 84% YoY but better than the loss of over Rs 2,000 crores reported in the December 2022 quarter.
For the full year ended in March 2023, the company’s total revenues stood at Rs 2.43 lakh crores, marginally lower than the figures reported last year as annual production fell over 1% to 30.65 million tonnes. EBITDA for the year was down 49% to Rs 32,698 crores.
Total expenses of the company grew a lot during the year. Cost of materials alone grew 34% as it was over Rs 1 lakh crore during the year. Prices of coking coal and iron ore were up during the year as the price of coking coal was around $300/ton due to short supply. Finance Costs of the company grew almost 15% during the year as Total expenses of the company was around Rs 2.27 lakh crores.
As a result of high expenses and lack of deferred tax benefits resulting in higher tax liabilities, the company’s net profit for the year stood at Rs 8,075.35 crores, down 82% YoY from Rs 41,749.32 crores reported in the corresponding period last year. Basic EPS was Rs 7.17 per share, down 78% YoY.
A dividend of Rs. 3.60 per share has been suggested by the company's board. At the time of reporting, the stock of Tata Steel was trading around Rs 111.30 per share.
-Aman Agarwal
