Team News Riveting
Mumbai, February 06
Tata Steel today declared its financial results for the third quarter and nine months ended December 31, 2022.
Consolidated Revenues in the first nine months of the financial year (Q3FY23) were up 3 per cent year-on-year (YoY) to Rs 1,80,391 crore despite volatile operating environment across geographies. Consolidated Profit after Tax in the first nine months of the financial year stood at Rs 6,509 crore.
“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 per cent YoY. Broad based growth was witnessed across most segments. For the quarter, domestic deliveries were up 11 per cent YoY and grew at a faster pace than India apparent steel consumption aiding in retaining market leadership position across chosen segments. Our crude steel production touched 5 million tons in 3QFY23 for the first time in India, with Neelachal Ispat Nigam limited commencing operations,” said, T V Narendran, Chief Executive Officer and Managing Director, Tata Steel.
The company spent Rs 3,632 crore on capex during the quarter. At Kalinganagar, phased commissioning of 6 MTPA pellet plant has begun. Work on 2.2 MTPA Cold Roll Mill complex and 5 MTPA expansion is ongoing.
In Punjab, work has commenced on enabling activities with respect to 0.75 MTPA Electric Arc Furnace, which is an important milestone in our journey to reduce emissions.
Neelachal Ispat Nigam Limited (NINL) has begun operations and is being ramped to rated capacity of around 1 MTPA. Tata Tiscon rebars are being made from NINL billets.
“We are presently expanding our capacities across multiple sites at Tata Steel Kalinganagar, Neelachal Ispat Nigam Limited and the Electric Arc Furnace at Ludhiana in Punjab and at our downstream plants across India. We continue to progress on our sustainability journey to achieve net zero by 2045 through multiple pathways. Finally, I am happy to share that World Economic Forum has recognised Tata Steel as Global Diversity Equity & Inclusion Lighthouse and we have also been awarded Great Place to Work certification for the sixth time in a row,” Narendran added.
Koushik Chatterjee, Executive Director and Chief Financial Officer, said, “We continue to invest in capacity growth in India, taking our capital expenditure to Rs 3,632 crore for the quarter and Rs 9,746 crore for the year to date. Our net debt has remained broadly stable on QoQ basis at Rs 71,706 crore and our liquidity position remains strong. We made further progress on derisking the British Steel Pension Scheme (BSPS) by expanding our insurance coverage on liabilities from 30 per cent to 60 per cent.”
Depending on market conditions, the residual insurance of 40 per cent of liabilities will be completed in the first half of the calendar year 2023 and there will be a commensurate non-cash deferred tax expense. They will continue to remain focused on cost optimisation, operational improvements and working capital management to maximise cashflows and are making progress on proposed merger of seven listed and unlisted entities, Chatterjee added.
