Tata Steel on Monday reported 112.76 per cent year-on-year (YoY) rise in consolidated net profit at Rs 1,954.02 crore for the quarter ended June 30.
The company had posted a profit of Rs 918.40 crore in the same quarter last year.
Analysts in an ETNow poll had projected a profit of Rs 2,725 crore.Consolidated revenue from operations increased to Rs 37,832.79 crore for the quarter under review against Rs 30,973.33 crore in the same period last year.The company reported an Ebitda of Rs 6,559 crore for the quarter against Rs 6,579 crore in the year ago quarter.
Consolidated ebitda margin came in at 17.3 per cent for the quarter under review.The company said the liquidity position of the group remains robust with approximately Rs 24,984 crore comprising of Rs13,086 crore in cash and cash equivalents and Rs11,899 crores in undrawn bank lines.
The capital expenditure for June quarter stood at Rs 1,931 crore.
Tata Steel delivered strong performance on the back of strong steel demand and buoyant spreads.
India domestic deliveries grew by 14 per cent YoY, significantly higher than the market, which saw a 9 per cent growth.
All verticals saw strong growth, with our automotive and branded products segments contributing 19 per cent and 33 per cent of total volumes, respectively, said T V Narendran, CEO Managing Director.Tata Steel Europe also saw stronger profitability with an improvement in spreads and operational performance, he added.Tata Steels India operations deliveries grew by 7.9 per cent YoY to 2.97 million tonnes in Q1FY19; domestic deliveries grew by 13.7 per cent, stronger than 9.2 per cent overall steel demand growth in India.
Domestic total revenue increased 13.8 per cent YoY to Rs 16,405 crore.The firms European operations deliveries improved by 1.9 per cent YoY to 2.45 million tonnes, however, declined 3.8 per cent on a sequential basis due to seasonally weaker quarter.
The ebitda for the continent improved significantly by 42 per cent QoQ to 183 pounds on account of higher selling price and better operational performance.On Bhushan Steel acquisition, the steel major said, Bhushan Steel's financials have been consolidated with effect from May 18, 2018.
The company has launched a programme for transformation and realisation of synergies with Tata Steel.