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Tata Steel has reported a consolidated net profit of Rs 3,116 crores for the second quarter of FY19, posting a threefold rise in (year-on-year basis) on the back of strong revenues reported during the said quarter.
Tata Steel’s net sales stood at Rs 43,544 crores in the Q2FY19, surging 34% y-o-y due to better realisations and increase in volumes and Bhushan Steel contributing for the first full quarter. The consolidated Ebitda increased sharply by 93% to Rs 9,000 crores.
Tata Steel’s India operations Ebitda per tonne was recorded at six years highest to Rs 9,244. The company’s Ebitda per tonne on a consolidated basis also witnessed a healthy growth and stood at Rs 12,131.
The company management said that Bhushan Steel’s total deliveries jumped 34% sequentially to 1.14 million tons as improved marketing strategy helped in inventory reduction. Revenue increased to Rs 5,862 crore compared with Rs 4,624 crore in Q1FY19.
Koushik Chatterjee, group executive director (finance and corporate) said one of the key priorities going forward will be to reduce leverage by around a billion dollars in the next 12 months from the internal cash flows and other strategic initiatives on the portfolio.
