Tata Steel, India’s largest private steelmaker, has reported a decreased consolidated net profit by 82.52% YoY to INR1,704.86 crore ($227.5m) for the January-March quarter of 2022-23 (Q4). The company cited a drop in steel spreads across regions as the decline in profits. However, the revenue for the quarter was INR62,961.54 crore ($8.4bn), down 9.17% from INR69,323.50 crore ($9.2bn) in the same period last year. The revenue and profit figures were better than expected, according to a Bloomberg consensus estimate that had projected revenue at INR60,629.9 crore ($8.1bn) and adjusted net income at INR480.4 crore ($64m).
Tata Steel’s consolidated revenue for FY23 was INR2.43tn ($32.4bn), which was similar YoY, despite a challenging operating environment across regions. The company’s consolidated net profit for the year was INR8,760.4 crore ($1.2bn), down from INR40,153.93 crore ($5.3bn) a year ago. The company’s India operations improved sequentially, posting a margin of 20%, while Tata Steel Europe posted an EBITDA loss of INR1,641 crore ($219m) in Q4 FY23. Tata Steel has ongoing projects across India, aiming to achieve 40 million tonnes per annum by 2030.
T V Narendran, CEO and MD of Tata Steel said the FY23 saw the company’s India crude steel production grow to about 19.9 million tonnes, with a 65% share of the overall volumes. Deliveries rose 11% YoY, with domestic deliveries driving product mix improvement. The consolidated return on invested capital was 15% for the entire year, added Koushik Chatterjee, ED and CFO.
