Tata Steel on Tuesday reported a consolidated net profit of Rs 3,989 crore for October-December quarter on higher revenue and better realisations. The company had posted a net loss of Rs 1,166 crore in the year-ago quarter.
Its total revenue grew 11.5 per cent year-on-year (YoY) to Rs 39,594 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 160 per cent to Rs 9,540 crore, highest ever in a quarter.
EBITDA per tonne more than doubled to Rs 13,876 from Rs 5,003 in the year-ago period. It stood at Rs 8,396 in preceding July-September quarter.
"Consolidated free cash flow was Rs 12,078 crore during 3QFY21 and Rs 20,588 crore in the first nine months of the current financial year driven by strong operating performance, disciplined capital expenditure and working capital management," Tata Steel said in a release.
The company's production rose to 7.20 million tonnes from 6.99 million tonnes a year ago, while deliveries declined to 6.88 million tonnes from 7.31 million tonnes.
Tata steel said it has decided to restart work on pellet plant and cold roll mill complex at Kalinganagar, Odisha. On completion, the plants will expand margins.
As part of its enterprise deleveraging plan, "the company reduced the leverage by Rs 10,325 crore" during October-December. "As part of the continued de-leveraging strategy further deleveraging is being undertaken in 4QFY21," it said.
On its India operations, Tata Steel said crude steel production grew 3 per cent YoY to 4.60 million tonnes, while domestic deliveries grew 4 per cent YoY to 4.16 million tonnes.
"Achieved the highest ever quarterly EBITDA of Rs 8,811 crore with 46 per cent quarter-on-quarter (QoQ) and 2.14x YoY growth; driven by higher prices, better product mix, lower exports and operating efficiency initiatives," it said.
Following the termination of discussions with SSAB on Tata Steel Netherland (TSN), the company said it will focus on performance and cash flows in the immediate term
Commenting on the results, Tata Steel CEO and Managing Director T V Narendran said steel demand saw a sharp improvement in India during the quarter, and the company pivoted its deliveries to domestic markets to cater to the requirements of local customers by reducing exports.
"In Europe, our underlying performance has improved quarter on quarter while the reported EBIDTA was negatively impacted by few one offs. We remain committed to arrive at a strategic and sustainable solution for Tata Steel Europe, though in the immediate term, we will focus upon business performance and cash flows," he added.