Profit Falls 13%, But Beats Estimates Despite Decline In Deliveries


Deliveries for India business stood at 4.07 million tonnes, down 2% compared with the corresponding quarter of previous fiscal.

This was due to moderation in exports following the imposition of 15%
export duty, the company said in a statement. “Consequently, domestic deliveries were successfully ramped up by leveraging our strong marketing network and agile business model.”

Chief Financial Officer Koushik Chatterjee expects volatility in steel prices and input cost movement to continue in the next quarter but seeds spreads stabilising in the second half of the year.

“We spent Rs 2,725 crore on capital expenditure in line with our annual
capex guidance as we progress on our Kalinganagar (Odisha) expansion,” he said in the statement.

Other Highlights (YoY)

  • Consolidated Ebitda per tonne fell 0.3% to Rs 22,717.

  • Consolidated deliveries stood at 6.62 million tonnes versus 7.11 MT in three months ended June 2021.

  • Net debt stood at Rs 54,504 crore in quarter ended June 2022.

“Our European business delivered a sharp improvement in performance as long-term contracts and product mix helped drive a strong increase in
realizations,” TV Narendran, managing director and chief executive officer, said.

Peer JSW Steel Ltd. also reported an 86% decline in profit over a year earlier amid global fall in prices and the imposition of export duty on certain steel exports in May.


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