Tata Steel Limited announced its results for the quarter ended December 31 at Rs 1,136 crore against Rs 232 crore in the previous year quarter. The company achieved consolidated quarterly revenue of Rs 33,447 crore, which is up by 15 per cent on YoY bases while 3 per cent on the QoQ basis. The company said its gross debt decreased by Rs 1,658 crore over Q2 FY18 at Rs 88,601 crore, mainly due to repayments and positive forex impact.
In a statement, the company said its crude steel production grew 4 per cent than the previous year quarter to 3.27 million tonnes, while deliveries grew by 10 per cent on YoY basis to 3.30 million tonnes, which is higher than the steel consumption growth in India.
Higher deliveries and improved realizations boosted the revenues during the quarter (net off the impact of excise) by 22 per cent on the YoY basis while 10 per cent on QoQ.
The automotive segment sales increased by 25 per cent (QoQ) and 34 per cent (YoY). Branded products, retail and solutions segment sales grew 8 per cent (QoQ) and 11 per cent (YoY). Deliveries in the industrial products, projects and exports segment grew 4 per cent (QoQ) and 7 per cent (YoY). The company's engineering sub-segment registered double growth on YoY basis.
The company's European operations saw the liquid steel production of 2.67 million tonnes (1 per cent up on YoY), in 3QFY18, while its Southeast Asian operations grew 26 per cent on YoY.
TV Narendran, CEO and Managing Director of Tata Steel, said: "Globally steel prices have been buoyant with improved trade position in China with cost push from raw materials. Our focus on India continues as we look to expand our Kalinganagar site as well as pursue inorganic growth opportunities."
Koushik Chatterjee, executive director and CFO of the company, said Tata Steel revenue had witnessed a robust growth due to improved volumes in India and stronger global realisations. "We are focusing on raising capital and optimising financing flexibility, for which the company has refinanced debt by raising $1.3 billion in the international debt capital markets through a dual tranche bond issuance."
Tata Steel has approved a 5 MTPA expansion at Tata Steel's Kalinganagar plant, whose total cost is estimated as Rs 23,500 crore. The company board has also approved a rights issue of equity shares for Rs 12,800 crore, which will be used for deleveraging and general corporate purposes.