Vivid News 24: Tata Steel Q2 profit plummets 87%, misses estimates: Tata Steel’s profit fell by around 87% in the September half of this year compared to the financial results of the July-September quarter last year. Tata Steel’s profit after tax stood at Rs 1514 crore. Profits in the current half have declined by 80% compared to the same period in the previous quarter.
As a result, the overall financial results of the Tata Group also failed to meet expectations. On the other hand, compared to the September half of last year, the profit in the corresponding half of the current year has decreased by 1% to 59878 crore. That is, the profit has decreased by 6% in the current half compared to the results of the last quarter of this year. The group reported its quarterly financial results on Monday.
Tata Group CEO and Managing Director T.V. Narendran said, “Slow growth in the world’s major economies, persistent geopolitical conflicts and seasonal factors have created a volatile environment.”
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However, Tata Steel has managed to achieve record domestic sales in the current half based on its brand reputation and distribution network, he said.
However, according to Tata Steel sources, the production in the current half has decreased by 3% compared to the September half of last year and stood at 7.5 million tonnes. Which is 2% less than the last half of the current year.
The net income of the company i.e. interest, tax, depreciation, and amortization (EBITDA) is Rs 6,271 crore. That is 62% less than the same period last year and 58% less than the last half. Significantly, Tata Steel’s debt has increased in the September half of this year.
The company’s debt stood at Rs 82,597 crore in June but stood at Rs 87,516 crore as on September 30, 2022. That is, the amount of RIM has increased by 5.96% from earlier.
However, the Tata Steel authorities have expressed hope about the business situation in the coming days. The company’s executive director and chief financial officer, Koushik Chatterjee, said Tata Steel’s production will increase in the H2FY23 half due to government measures and availability of raw materials, along with lower production costs.