The quarterly profit of Tata Steel Ltd is soaring high, beating estimates aided by higher prices, a better product mix and initiatives to improve operating efficiency.
The company’s top line grew 11.5% year-on-year as revenue rose to a seven-quarter high of Rs 39,594 crore.
However, the domestic sales fell 4% over the preceding year as prices of hot-rolled coil steel rose.
It has been reported that the estimate profit of the steelmaker was Rs 3,989 crore in the quarter ended December against a loss of Rs 1,166 crore in the corresponding quarter a year ago.
The company claimed that the operating profit rose 160.7% over the preceding year to Rs 9,540 crore, as realisation rose in the steelmaker’s key entities.
The key highlights can be summarized as:
- Tata Steel Bhushan Steel merger with Tata Steel is significantly progressing.
- Reduction in net debt by Rs 18,609 crore and gross debt by Rs 7,649 crore for the nine months through Dec 31, 2020.
- The company will focus on performance and cash flows in the immediate term following the termination of the discussions with SSAB on Tata Steel Netherlands.
- Allocation of capital restarted on margin expansionary growth projects in India within the contours of the targeted financial framework.
- To further pare gross debt by more than Rs 12,000 crore in the fourth quarter of the ongoing fiscal
- Tata Steel has delivered one of the best financial performance during this quarter with the highest ever consolidated EBITDA of Rs 9,540 crore
- Free cash flows of over Rs 12,000 crore on the back of strong underlying operating performance of the India business
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