Tata Steel has reported more than four-fold jump in consolidated profit at Rs 933 crore during April-June quarter, compared with Rs 209.43 crore in same quarter last year. The profitability was driven by strong operational performance of India as well as Europe businesses.
However, it partly hit by South-East Asian operations, and exceptional loss of Rs 617 crore mainly due to provision for mining related litigation.
"Consolidated profit from continuing operations before exceptional items stood at Rs 1,550 crore, a 4-fold jump over Rs 377 crore in Q1FY17," the company said in its filing.
Indian Operations
Steel deliveries for the quarter stood at 2.75 million tonnes, higher by 28 percent over same quarter last year due to ramp up of Kalinganagar facility but down 14 percent sequentially on seasonal factors, GST and planned shutdowns.
Operating income grew by 31 percent year-on-year to Rs 2,922 crore on higher deliveries.
Profit dropped 12 percent to Rs 506.45 crore but revenues increased sharply by 39.7 percent to Rs 14,422 crore in the quarter ended June 2017.
European Operations
Tata Steel said revenues in first quarter were at 1,703 million pound, a growth of 28 percent year-on-year reflecting the improved market conditions and increased sales of differentiated products. However, revenues on sequential basis declined 6 percent due to lower deliveries, though selling prices increased.
Operating profit jumped 63 percent year-on-year to 152 million pound, but fell 36 percent QoQ due to higher raw material prices and lower deliveries.
Deliveries in Q1 were 3 percent lower YoY and 16 percent lower than the seasonally strong fourth quarter, it said.
Its operating income from South-East Asian operations declined by 88 percent due to lower scrap - rebar local spreads in the region and weak market conditions particularly at NatSteel. Revenues dropped to Rs 1,991 crore from Rs 2,003 crore YoY.
"South-East Asian operations witnessed weak market conditions particularly in Singapore which affected the performance," TV Narendran, MD, Tata Steel India and South East Asia said.
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