Tata Steel on Friday reported 54.31 per cent year-on-year (YoY) growth in its consolidated net profit at Rs 1,753 crore for the third quarter ended December 31, 2018, despite a sharp drop in international steel prices. "The steel major had posted a consolidated net profit of Rs 1,135.92 crore for the same quarter a year ago," Tata Steel said in a filing to the Bombay Stock Exchange.
Consolidated total income of the company soared 23 per cent to Rs 41,431.37 crore during October-December 2018, from Rs 33,672.48 crore in the year-ago quarter. Consolidated adjusted EBITDA grew 27 per cent Y-o-Y to Rs 7,225 crore as compared to Rs 5,671 crore in 3QFY18.
Commenting on Q3, CEO & Managing Director TV Narendran said: "Despite a sharp drop in international steel prices, we were able to maintain our overall realisations and increase our volumes significantly in India. The integration of Tata Steel BSL continues and our 5 MTPA expansion at Kalinganagar is also making good progress. We are also looking forward to enhancing our long products and downstream capability through the acquisition of the 1 mtpa steel business of Usha Martin."
During the quarter under review, India' steel production surged 34 per cent to 4.38 million tons while deliveries grew 18 per cent YoY to 3.89 million tons from 3.30 million tons in 3QFY18.
The company said that the liquidity position of the group remains robust at Rs 19,320 crore comprising of Rs 8,549 crore in cash and cash equivalents and Rs10,771 crore in undrawn bank lines.
Gross debt decreased by Rs 9,083 crore during the quarter.
Tata Steel which acquired Bhushan Steel (BSL) through its wholly-owned subsidiary Bamnipal Steel Ltd (BNPL), said that Tata Steel BSL integration is progressing smoothly and the focus continues to be on ramping up production and realizing synergies. Tata Steel BSL EBITDA for the quarter was Rs 1,008 crores and the EBITDA margin was 20.6 per cent.
In October-December quarter, Tata Steel divested its remaining 26.62 per cent equity stake in TRL Krosaki, for Rs 305 crore. The divestment is in line with stated strategic priorities of divestment of non-core assets and the proceeds will be used for deleveraging, it added.
Ahead of the announcement, shares of the company fell 3.70 percent to close at Rs 469.55 apiece on BSE.
(Edited by Chitranjan Kumar)