Tata Steel Ltd shares jumped over 2% to Rs 1,200 on the BSE after reporting strong Q3 results.
On February 4, the company recorded a consolidated net profit of Rs 9,573 crore for the third quarter ending December 2021, up 159% from Rs 3,697 crore the previous year. The company had earned a post-tax profit of Rs 11,918 crore in the preceding quarter.
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Consolidated revenues were Rs 60,783 crore, up 45% from Rs 41,935 crore recorded in the same period last year. The previous quarter’s revenue was Rs 60,387 crore.
India’s steel demand has begun to improve on the back of continued economic recovery as the third wave of COVID begins to ebb. “Our steel deliveries in India expanded by 4% in the first nine months of the financial year along with an improvement in product mix,” TV Narendran, Chief Executive Officer & Managing Director of Tata Steel, said while commenting on the performance for the quarter.
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“We continue to drive value-accretive growth in our chosen segments and our performance in key segments such as auto was robust despite the sector being impacted by the semiconductor shortage,” he added.
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During the quarter, the company produced 7.76 million tonnes (MT) of steel, which was consistent with the 7.77 MT produced in the previous quarter and somewhat higher than the 7.74 MT produced in the same period a year before.
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During the quarter, sales volume fell both years on year and sequentially. The company sold 7.01 MT of steel during the quarter, a 5.4% decrease from 7.41 MT sold at the same time last year. The decrease from 7.39 MT in the previous quarter is 5.1%.
The company generated a consolidated EBITDA per tonne of Rs 22,663, up from Rs 24,112 in the previous quarter.