Tata Steel Ltd. swung back into the black with a net profit of Rs 759 crore in the quarter ended Sept. 30, according to the financial results declared by the steelmaker on Wednesday.
In the year-ago period, Tata Steel had posted a net loss of Rs 6,511 crore on account of a Rs 3,255-crore provision of impairment of non-current assets. The company's net profit in the quarter under review has beaten the Rs 452-crore consensus estimate of analysts polled by Bloomberg.
Tata Steel Q2 FY25 Results Highlights (Consolidated, YoY)
Revenue down 3% to Rs 53,905 crore versus Rs 55,682 crore (Bloomberg estimate: Rs 53,104.33 crore).
Ebitda up 44% at Rs 6,141 crore versus Rs 4,268 crore (Bloomberg estimate: Rs 5,345 crore).
Margins at 11.4%% versus 7.7% (Bloomberg estimate: 10.1%).
Net profit of Rs 759 crore versus Rs 6,511-crore loss (Bloomberg estimate: Rs 452 crore).
Tata Steel's top line was mainly impacted by the correction in Indian as well as international steel prices that were driven by the seasonal effect and the slowdown in China in the second quarter.
The domestic industry also continues to face pressure of cheaper steel imports, which rose by 44% quarter-on-quarter.
Despite lower revenue growth, the company's Ebitda and margins were aided by a Rs 746.59 reversal in inventory changes, 1.3% lower cost of materials consumed and 11% lower other expenses on an annual basis.
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