New Delhi: Tata Steel on Wednesday reported a net profit of Rs 758.84 crore for the September 2024 quarter, helped by lower expenses.
It had posted a net loss of Rs 6,511.16 crore in the July-September period of the preceding 2023-24 fiscal, the company said in an exchange filing.
The company’s total income, however, fell to Rs 54,503.30 crore during the second quarter against Rs 55,910.16 crore in the same period a year ago.
The results were declared after the market hours. Shares of Tata Steel had closed 1% higher at Rs 153.81 apiece on the NSE, compared to a 1.12% climb in the benchmark Nifty 50.
Tata Steel reduced its expenses to Rs 52,331.58 crore from Rs 55,853.35 crore in the year-ago quarter.
Despite the positive bottomline, the company’s revenue declined 3 year-on-year percent to Rs 53,905 crore in Q2FY25, as the Indian steel industry continued to battle sluggish pricing due to cheap imports, mainly from China, as well as indifferent demand due to a slowdown in infrastructure projects in the post-General Election period.
The loss in the reporting quarter last year was due to a large provision – around Rs 6,899 crore that the company had taken for its United Kingdom operations related to the ongoing restructuring operations there.
For Q2, Tata Steel said in a note that it has recognised an additional provision of Rs 34.21 crore related to the closure of heavy-end assets at the company’s UK operations. Tata Steel closed the second of the two blast furnaces at its steelworks in Port Talbot, Wales, during the quarter, and had earlier closed the other blast furnace, coke ovens, and other assets at the site.
