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

It has been concluded that there does not exist any material uncertainty relating to concern assessment of TSUK, which will have access to adequate liquidity to fund its operations

Tata Steel Ltd on Wednesday reported a net profit of Rs. 833 crore for the July-Sept quarter (Q2) of the current financial year. It marks a significant 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 three per cent year-on-year to Rs. 53,905 crore. It 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.

Following the Grant Funding Agreement (GFA) for the decarbonisation proposal with the UK government on September 11, there is a commitment to infuse equity into TSUK through T Steel Global Holdings Pte Ltd (TSGH), a wholly-owned subsidiary of the company.

Accordingly, it has been concluded that there does not exist any material uncertainty relating to concern assessment of TSUK, which will have 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 has unanimously approved the appointment of Pramod Agrawal as an additional director (non-executive, independent) effective November 6, 2024, and as an Independent Director for a five-year term.