Tata Steel Limited posted a net profit of Rs 3,989 Crore in the third quarter of the current financial year as compared to a net loss of Rs ₹1,228.53 crore in the year-ago period, tracking strong performance in the country’s business. The company’s revenue rose 11 per cent year-on-year to Rs 39,594 crore for the October-December quarter under review. According to the company’s regulatory filing on the BSE, it witnessed the highest-ever quarterly consolidated operating profit of Rs 9,540 crore during the third quarter of the financial year. Tata Steel’s India business achieved the highest ever quarterly EBITDA of ₹8,811 crores, driven by higher prices, better product mix, lower exports and operating efficiency initiatives, said the company in its statement.
During the December quarter of the current fiscal, the company’s total income rose to Rs 39,809.05 crore from Rs 35,613.34 crore a year ago. Its expenses were at Rs 34,183.18 crore, lower from Rs 35,849.92 crore in the corresponding quarter of 2019-20.
“The recovery in the global and Indian economy has led to sharp improvement in steel demand in India. We pivoted our deliveries to domestic markets, to cater to the requirements of our local customers by reducing exports. All the segments, especially automotive, have performed extremely well supported by our continuous focus on strong customer relationships, superior distribution network, brands and new product developments,” said Mr. T V Narendran, CEO & Managing Director, Tata Steel.
Tata Steel added that during the December quarter, it reduced its debts by Rs 10,325 crore, which took the nine-month reduction in net debt by Rs.18,609 crores. At 4:00 pm on Tuesday, February 9, shares of Tata Steel settled 0.48 per cent lower at Rs 699.95 apiece on the BSE.