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Steel giant Tata Steel published its Q1 results for the FY23 results wherein the company reported a 13% contraction in profits.
The company's profit declined 12.83% from Rs 8,907 crores reported last year to Rs 7,765 crores this year. On a quarterly basis, the profit declined by 20.4%.
Revenues of the Tata Group's steel arm reported an 18.6% YoY growth to Rs 63,430 crores while registering a decline of 8.5% on a sequential basis.
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The company's EBITDA improved to Rs 15,047 crores while the EBITDA margin grew to 24%. Although the company's EBITDA from Indian operations declined 28%, the same from its European business grew 294%! At Rs 6,037 crores, this was the highest ever EBITDA from the company's European business.
The steelmaker's cost of raw materials surged 57% YoY to Rs 31,319 crores due to greater coking coal consumption across all entities. Deliveries from India were down by 2% due to the 15% export duty levied by the government. This in turn led to greater domestic deliveries.
"This has been a challenging quarter for the Global and Indian economy with rising interest rates, supply chain constraints, and the slowdown in China due to COVID. Despite these multiple headwinds, Tata Steel has delivered a strong performance with an improvement in margins," CEO and MD of Tata Steel, TV Narendran said.
Dalal Street reacted positively to the results as the stock witnessed a full gap-up opening at Rs 972 per share. However, bears took over as the stock kept declining today as it currently trades around Rs 950 per share, down 2.3% intraday.
Article by Aman Agarwal.
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