Curated By: Business Desk
Last Updated: November 02, 2023, 14:27 IST
Tata Steel’s EBITDA or operating profit declined 29.6% to Rs 4,267.8 crore from Rs 6,060.3 crore a year ago.
The Tata Group company reported 7% drop in consolidated total revenue year-on-year from operations at ₹55,682 crore compared to ₹59,877 crore in the same period a year ago.
Tata Steel Limited reported a consolidated net loss of Rs 6,511 crore in the July to September of FY 2023-34 compared to a net profit of Rs 1,297 crore in the year ago period due to declining margins and provisions made for European operations.
In its financial results for Q2FY24 released on Wednesday, November 1, the Tata Group company reported 7% drop in consolidated total revenue year-on-year from operations at ₹55,682 crore compared to ₹59,877 crore in the same period a year ago.
Tata Steel’s total expenses in this quarter stood at Rs 55,853.35 crore, down from Rs 57,684.09 crore in the same period last year. The company faced challenges in its European operations, which contributed to these losses.
Tata Steel’s EBITDA or operating profit declined by 29.6% to Rs 4,267.8 crore from Rs 6,060.3 crore a year ago. Moreover, the EBITDA margin decreased from 10.12% to 7.66% YoY.
The company said that its India business generated a higher margin of around 20% while margins moderated for UK business.
“India business generated a higher margin of around 20% and EBITDA stood at Rs 6,841 crore. In Europe, margins moderated especially in UK business while Netherlands business was broadly stable on a quarter-on-quarter (QoQ basis). Revenue per ton was lower in both geographies. However, improved costs in Netherlands led to broadly similar margins,” Koushik Chatterjee, Executive Director and Chief Financial Officer, said.
A day after the release of weak Q2 results Tata Steel shares traded in green on Thursday breaking the losing streak for five consecutive sessions. Shares of the company were trading at Rs 117.85 apiece, up 1.07% on BSE at 2:11PM.
Notably the stock has lost more than 8% in the past one month.
In addition, there are speculations that the company may soon conduct layoffs. However, it is not expected to impact Indian employees. These layoffs are likely to occur in the United Kingdom, where the company plans to close its blast furnace. This could potentially result in around 3,000 job cuts at Tata’s plant in Wales, according to reports.
