Tata Steel reports Q3 profit of Rs. 522 crore
Tata Steel experienced a remarkable turnaround in Q3 FY24. It posted a consolidated net profit of Rs. 522.14 crore, compared to a net loss of Rs. 2,501.95 crore during the same period last year. This impressive profit was fueled by strong domestic demand, which counterbalanced the weaker European market. To note, the company suffered a net loss of Rs. 6,511.16 crore in Q2 due to impairment charges.
Consolidated revenue falls 3%, India segment grows
The company's consolidated revenue from operations dipped 3% to Rs. 55,311.9 crore in the October-December quarter, down from Rs. 57,083.56 crore in the previous year. Sequentially, the consolidated revenue from operations fell 0.7% from Rs. 55,681.93 crore in Q2. However, Tata Steel's India segment experienced a 2% growth in quarterly revenue, reaching Rs. 34,681.90 crore.
Best-ever Q3 sales in India
Tata Steel's record-breaking Q3 sales were driven by the ongoing strength of Indian steel demand, with domestic deliveries reaching 4.88 million tons (MT). The Industrial Products & Projects segment saw a 5% QoQ and 6% YoY increase in deliveries, while the Automotive & Special Products segment experienced an 8% QoQ and 22% YoY growth. Engineering sales reached an all-time high during this quarter.
Europe operations revenue declines by 12.5%
Revenue from European operations declined by 12.5% to Rs. 18,141.97 crore during the quarter. Tata Steel Netherlands produced 1.17MT of liquid steel and delivered 1.29MT, a 5% QoQ increase. However, production and deliveries were down YoY due to the relining of a blast furnace. Tata Steel UK's liquid steel production for the quarter was 0.73MT, slightly lower than the previous quarter due to operational issues.
