Tata Steel July-September Profit Surges 3.7x on Strong India Operations, Revenue Up 9%

Tata Steel Ltd. reported a sharp rise in profit for the September quarter, led by stronger performance in its India and Netherlands operations.

The steelmaker’s consolidated net profit jumped 3.7 times on year to ₹31 billion in  July–September. Consolidated revenue from operations rose 8.8% on year and 10% on quarter to ₹582.2 billion, marking the first on-year growth after 12 straight quarters of decline.

Operating performance improved significantly, with consolidated earnings before interest, tax, depreciation and amortisation rising to ₹91.1 billion from ₹62.2 billion a year ago. Adjusted EBITDA stood at ₹90 billion, up from ₹55.2 billion, while EBITDA per tonne increased to ₹11,518 from ₹8,278.

The India business continued to be the key driver, with adjusted EBITDA rising to ₹85.2 billion from ₹68.9 billion and per tonne EBITDA improving to ₹15,331 from ₹13,479. A sequential drop in consolidated realisations during the quarter was offset by higher deliveries in India and the Netherlands.

Revenue from India operations grew to ₹347.9 billion from ₹326.6 billion a year earlier. Revenue from the Netherlands rose to ₹157.2 billion from ₹141.1 billion, while the UK business saw a decline to ₹59.3 billion from ₹65.2 billion.

The company incurred exceptional expenses of ₹4.2 billion during the quarter, compared with exceptional gains of ₹181 million in the year-ago period. A 26% fall in tax expenses to ₹10.4 billion also supported the bottom line.

For April–September, Tata Steel’s consolidated net profit rose 2.9 times on year to ₹51.8 billion, while revenue increased 3% to ₹1.118 trillion. Capital expenditure during the first half was ₹70.8 billion, with ₹32.5 billion spent in the September quarter.

Tata Steel’s net debt stood at ₹870.4 billion as of September 30, while gross debt declined to ₹956.4 billion from ₹989.5 billion in the previous quarter, mainly due to loan repayments of ₹42.5 billion.

The board also approved the acquisition of a 50% stake in Tata BlueScope Steel Pvt. Ltd. for up to ₹11 billion through its subsidiary Tata Steel Downstream Products Ltd.