Tata Steel shares decline nearly 4 pc after Q3 loss
Published On: Tuesday, February 7, 2023 | By: Team KnowMyStock
Shares of Tata Steel slipped 5 percent to Rs 112 on the BSE in Tuesday’s intra-day trade on profit booking after the steel major reported a consolidated net loss of Rs 2,502 crore for the quarter ended on December 31, 2022 (Q3FY23), on account of higher expenses. It had posted a net profit of Rs 9,598.16 crore in the year-ago period, the company said in a regulatory filing. Consolidated revenues from operations at Rs 56,757 crore were down 6.2 percent from Rs 60,525 crore in the year-ago period. The earnings before interest, depreciation, tax and amortization (EBITDA) were down 74 percent year-on-year and 34 percent sequentially at Rs 4,154 crore. In the previous quarter, consolidated revenues had stood at Rs 59,512.54 crore and the net profit was Rs 1,514.42 crore. Total expenses during the quarter stood at Rs 57,172.02 crore compared to Rs 48,666.02 crore a year back.
The disappointing performance during the quarter was on the back of a sharp drop in realizations in Europe coupled with a non-cash deferred tax expense on account of the British Steel Pension Scheme. “Profitability was affected by a sharp drop in realizations and spreads in Europe,” Tata Steel said.
India deliveries stood at 4.74 million tonnes and were up 7% YoY, primarily driven by 11% growth in domestic deliveries, which has also enabled an improvement in product mix."In Europe, our deliveries were lower in 9MFY23 due to a slowdown in demand. Recession concerns weighed on steel prices, which coupled with elevated energy costs affected our performance," said T V Narendran, CEO & MD, Tata Steel.
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