Tata Steel Ltd reported a strong quarterly financial result as the steelmaker recent acquisitions in the country posted a significant capacity output resulting in higher revenue. The steelmaker reported a net profit of Rs 2,284.1 crores in the December-end quarter of the current fiscal, posting a 76.5 per cent surge as compared to the net profit during the same quarter a year ago.
Tata Steel Ltd. also reported revenue growth of 23 per cent to Rs 41,220 crore. The operating profit of the company also increased by 18 per cent to Rs 6,723.4 crores, however, the margin contracted 70 basis points to 16.3 per cent.
TV Narendran, chief executive officer and managing director of Tata Steel in a press release said, “Tata Steel is committed to growing its India footprint while focusing on benchmark operational performance, superior market presence, strong customer relationships and sustainability.” He added, “Despite a sharp drop in international steel prices, we were able to maintain our overall realisations and increase our volumes significantly in India.”
Tata Steel has been, for a quite while, divesting in its international businesses and has shifted its focus back to India, as by acquiring insolvent Bhushan Steel Ltd. The acquisition resulted in steel production increased by 34 per cent. The company also reported that the operating profit from operations in India stood at Rs 16,407 per tonne of steel as compared to Rs 10,331 per tonne in its consolidated business.