Tata Steel Q3 results: Firm posts Rs 515-cr profit, revenue falls 3%

Tata Steel Ltd on Wednesday reported Rs 515-crore profit in the quarter ended December 31, 2023 as against loss of Rs 2,224 crore in the year-ago period as declining expenses more than offset lower revenue due to weak domestic prices..

Subdued local prices due to cheaper shipments from top producer China hurt India's steelmakers in the October-December period, despite sustained domestic demand.

The quarter partly coincided with an eight-month period when Chinese steel shipments reached 5-year high, turning India into a net importer.

Despite domestic production volumes growing 7%, the steelmaker's revenue fell 3% to Rs 55,312 crore in Q3FY24 as compared to Rs 57,084 crore in Q3FY23.

However, expenses slipped nearly 7%, as costs of raw materials fell more than 22%.

"During this quarter, China exported between 7 to 8 million tons of steel every month, which is the highest since 2015 and this has adversely impacted global steel prices as well as profitability," CEO T V Narendran said in a statement.

The company also took restructuring and employee separation compensation charges of Rs 313 crore and Rs 23.65 crore in the quarter, respectively.

The charges are in relation to a deal it signed last September with the British government to decarbonise its Port Talbot site, which would axe up to 2,800 jobs.

The company is aware of the impact of its proposal to wind down Port Talbot on individuals and the local community, it said.

On Wednesday, Tata Steel's scrip on BSE closed trading 3.7% higher at Rs 134.9.

With inputs from Reuters