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Tata Steel posts Rs 12,548 crore profit after tax in Q2

Jamshedpur, Nov 11: Tata Steel, today announced financial results for the second quarter of FY22. The Consolidated adjusted EBITDA increased 12%QoQ to Rs.17,810 crores. Consolidated Profit after tax improved 28%QoQ and 7.5x YoY to Rs.12, 548 crores.

Gross debt decreased to Rs.78,163 crores with repayments of Rs.11,424 crores in 1HFY22. Net debt declined to Rs.68, 860 crores. Indian crude steel production increased by 2.2%QoQ and 3.1%YoY to 4.73 mn tons. Overall deliveries in India increased by 11%QoQ to 4.58 mn tons despite market demand contraction amidst seasonal weakness. Sales volume to automotive segment increased by 18%QoQ despite semiconductor shortage driven weakness in the sector.

The company spent Rs.2,191 crores on capex during the quarter, work on the Pellet plant, the Cold Roll Mill complex and the 5 MTPA expansion at Kalinganagar is ongoing. Tata Steel has achieved Investment grade credit metrics; the credit rating has been upgraded by S&P Global Ratings to ‘BBB-‘ with stable outlook.

Tata Steel Standalone registered highest ever quarterly adjusted EBITDA at Rs.13,574 crores in 2QFY22 with 4%QoQ and 2.3x YoY growth. Tata Steel Long Products registered quarterly EBITDA of Rs 302 crores.

T V Narendran, Chief Executive Officer & Managing Director: “Tata Steel has delivered strong results across key geographies in this seasonally weaker quarter. Our steel deliveries in India expanded by 11% despite a contraction in market demand which is a testament to the strength of our franchise. We continue to drive value accretive growth in our chosen segments and our performance in key segments such as auto was very robust despite the sector being impacted by the semiconductor shortage. Our European operations have also delivered robust performance underpinned by strong improvement in realizations. We are watchful of the elevated coal prices and high energy cost as key risks to margins going forward.”

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