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By Malvika Gurung
Investing.com — Shares of the steelmaking behemoth Tata Steel (NS:) shed 3.75% to Rs 113.05 apiece at 9:48 am on Tuesday, after tanking 4.21% to hit the session’s low at Rs 112.5 apiece in early trade. It was the top loser on the index.
The mega-cap steelmaker posted a surprise consolidated net loss of Rs 2,224 crore in the December quarter, plunging 76% from a net profit of Rs 9,572 crore recorded in the same period last year. Its profit after tax (PAT) for the India business tanked 75.36% YoY to Rs 1,918 crore in Q3 FY23.
The company’s revenue from operations dipped 6% YoY to Rs 57,083.56 crore in Q3 from Rs 60,783 crore in the year-ago period, while its expenses rose 17.5% YoY to Rs 57,172.02 crore in the period.
Tata Steel’s profitability in the quarter under review was affected by a sharp drop in realisations and spreads in its European business, where the deliveries were lower in 9MFY23 due to a slowdown in demand. Recession concerns weighed on steel prices, which coupled with elevated energy costs affected the company’s performance, stated the CEO & MD of Tata Steel, TV Narendran.
The Tata Group major’s consolidated EBITDA stood at Rs 4,154 crore in Q3 FY23, along with an EBITDA margin of 7%.
“Tata Steel has delivered steady growth in India volumes despite the volatile operating environment. Domestic deliveries stood at around 13.7 million tons in the first nine months of the financial year and were up 4% YoY,” said Narendran.
“Global steel prices have witnessed steady moderation amidst inflationary pressures and concerns about economic slowdown in the first nine months of the financial year,” said Koushik Chatterjee, Executive Director and CFO of the company.
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