Tata Steel posts robust performance in Q2

Tata Steel posts robust performance in Q2

Shares of Tata Steel rallied more than 3% on November 12 a day after the integrated steel maker reported robust numbers for the quarter ended in September.
On November 11, Tata Steel reported a profit after tax (PAT) of Rs 12,548 crore, a 7.5-fold jump from Rs 1,665 crore in the corresponding quarter last year and by 28% from Rs 9,768 crore in the previous quarter, helped by strong performance across geographies.
The consolidated revenues at Rs 60,282.8 crore climbed up 55% from Rs 38,940 crore recorded in the corresponding quarter last year. On a q-o-q basis, revenues increased by 13% from Rs 53,372 crore reported in the previous quarter.

The steelmaker continued to drive value accretive growth in its chosen segments and its performance in key segments such as auto was very robust despite the sector being impacted by the semiconductor shortage.
Crude steel production for Tata Steel increased by 2.2% q-o-q and by 3.1% y-o-y to 4.73 million tons.
The company delivered 4.58 million tons of steel in this quarter, which was higher by 11% q-o-q and dispatches to automotive segments increased by 18% q-o-q despite weakness in the sector due to semiconductor shortage.
Consolidated EBIDTA margin for the company stood at 27.6% and PAT margin at 20.8% for the quarter.
Consolidated adjusted EBITDA for the quarter increased by 12% q-o-q to Rs 17,810 crore. Compared to last year, adjusted EBITDA increased 3.2x from Rs 5,527 crore.

For India operations, the adjusted EBITDA stood at Rs 13,877 crore, a growth of 2.1% q-o-q and 2.3x y-o-y.
EBITDA per ton for India operations for the quarter stood at Rs 30,272/ton, which was down 7% from the previous quarter but it was up by 154% from Rs 11,912/ton for the same period of last year.
Profit after tax stood at Rs 8,843 crore.
On a standalone basis, Tata Steel registered the highest ever adjusted EBITDA at Rs 13,574 crore in this quarter, registering a growth of 4% q-o-q and 2.3x y-o-y.

Tata Steel Long Products registered a quarterly EBITDA of Rs 302 crore.
Tata steel Europe operations also witnessed robust growth in revenues, which increased by 11% q-o-q and 50% y-o-y to 2,108 million pounds in this quarter.
EBITDA for Europe improved 2.2x q-o-q to 328 million pounds, resulting in an EBITDA per ton of 153 pounds.
Consolidated EBITDA per ton for the quarter stood at Rs 24,112/ton increasing by 8% from the previous quarter and by 246% on a y-o-y basis.

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