India’s steel prices may continue to remain high at least till the next quarter. Quoting the remarks made by Tata Steel CEO TV Narendran during an earnings call media said, steel prices may remain high in India because of the expected strong demand, high coking coal prices and low import of steel into the country.
India’s demand shrunk by 2.3 percent in the second quarter due to seasonality and weaknesses in various consuming sections. But Tata Steel delivered strong results across key geographies in this seasonally weaker quarter also. “Our steel deliveries in India expanded by 11% despite a contraction in market demand which is a testament to the strength of our franchise,” said Mr. Narendra. “We continue to drive value accretive growth in our chosen segments and our performance in key segments such as auto was very robust despite the sector being impacted by the semiconductor shortage,” he said.
Tata steel poses highest ever profit after tax
Koushik Chatterjee, executive director and CFO of the company said
“Tata Steel posted its highest ever underlying quarterly performance with EBIDTA and Profit after Tax of Rs 16,618 crores and Rs 12,548 crore on the back of strong operating and market performance across all geographies including Europe. This translates into a consolidated EBIDTA Margin of 27.6% and PAT margin of 20.8% for the quarter. The operating cash flows continue to be strong despite working capital pressure due to price effect on coal price increase in recent months. We signed and closed the divestment of our 100% holding in NatSteel Holdings in this quarter to realise around Rs.1,200 crore that resulted in a realised gain of Rs 720 crores for the quarter,” he said.