Tata Steel Bounces Back With Rs 833 Crore Net Profit In Q2

11/6/2024 9:15:14 AM

(MENAFN- IANS) New Delhi. Nov 6 (IANS) Tata Steel Ltd on Wednesday reported a net profit of Rs 833 crore for the July-Sept quarter (Q2) of the current financial year to bounce back from a loss of Rs 6,196 crore in the same quarter last year.

The company's revenue from operations in the quarter fell 3 per cent year-on-year to Rs 53,905 crore.

The company reported an EBITDA of Rs 6,141 crore during the second quarter while margins stood at 11.4 per cent.

Tata Steel has been making losses in its UK business. The company said in a stock exchange filing with BSE that Tata Steel Europe Ltd ('TSE'), its wholly owned step-down subsidiary, is exposed to certain climate-related risks which could affect its future cash flow. The cashflow projections include the impact of decarbonisation given that both the TSUK and TSN businesses within TSE have stated their plans to move away from the current production process and to transition to electric arc furnace-based production. The Grant Funding Agreement (GFA) for the decarbonisation proposal was signed with the UK government on September 11, 2024. With the UK government funding available under the GFA and a commitment to infuse equity into TSUK through T Steel Global Holdings Pte. Ltd ('TSGH'), a wholly-owned subsidiary of the company, TSUK now has the certainty that the funding is available for its decarbonisation proposal from both the UK government and the company.

Accordingly, it has been concluded that there does not exist any material uncertainty relating to going concern assessment of TSUK and that TSUK has access to adequate liquidity to fund its operations.

Tata Steel also informed the stock exchange that based on the recommendation of the Nomination and Remuneration Committee, the Board of the Company considered and unanimously approved the appointment of Pramod Agrawal as an Additional Director (Non-Executive, Independent) effective November 6, 2024, and as an Independent Director of the Company for a term of 5 years.

Tata Steel shares closed 0.85 per cent higher at Rs 153.60 after Wednesday's trading session, compared to Rs 152.30 at the previous market close. The company released its second-quarter results after market hours.

MENAFN06112024000231011071ID1108857264

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.