Tata Steel reports Q3 net profit of Rs 232 crore

Tata Steel has reported a consolidated net profit of Rs 231.90 crore for the quarter ended December 31, 2016, compared with a loss of Rs 2,747.72 crore in the same period.

Consolidated total income from operations for the company during the December quarter grew 14.06%, to Rs 29,391.60 crore, compared with Rs 25,766.89 crore in Q3FY16.

Net profit for the company on a standalone basis (Indian operations) grew over three times to Rs 1,204.60 crore, compared with Rs 298.35 crore in the same quarter of last year. Total income from operations for the Indian operations grew 38.81% to Rs 13,971.79 crore, against Rs 10,065.37 crore in the comparable period.

Deliveries for the Indian operations grew 14% sequentially, and 27% (YoY), outperforming domestic markets which grew by 3% sequentially, and contracted by 2% (YoY). EBITDA improved to Rs 3,393 crore, up 70% sequentially, and 110% (YoY) on the back of supportive realisations, strong growth in deliveries and rampup of Kalinganagar plant. The performance of ferro alloys and minerals division registered sharp improvement on the back of improved market conditions. Operating profit of the division at Rs 302 crore, is higher by Rs 141 crore sequentially, and by Rs 267 crore (YoY), the company said.

As far as European operations are concerned, EBITDA for the quarter improved to Rs 610 crore, compared with a loss of Rs 757 crore a year earlier, as a result of a more competitive Pound, a lower UK cost-base and more favourable market conditions. Higher raw material and energy costs in Q3FY17 led to EBITDA being Rs 425 crore lower sequentially, the company said.

Revenues for Southeast Asia operations grew by 11% (YoY) to Rs 1,985 crore, on the back of improved deliveries at Tata Steel Thailand, and supportive realisations.