Tata Steel March-quarter net jumps 37% to Rs 9,835 crore; board approves stock split proposal
Tata Steel on Tuesday posted a 37 per cent jump in consolidated net profit at Rs 9,835.12 crore for the quarter ended March 2022, mainly on account of higher income.
The steel major had reported a net profit of Rs 7,161.91 crore in the year-ago quarter, it said in a BSE filing.
During January-March 2022, Tata Steel’s total income jumped to Rs 69,615.70 crore from Rs 50,300.55 crore earlier.
Total expenses rose to Rs 57,635.79 crore from Rs 40,102.97 crore in the January-March period of 2020-21.
In a statement issued separately, the company’s CEO and MD T V Narendran said, “Tata Steel has again demonstrated its ability to deliver stellar results despite heightened complexity in the face of COVID as well as geopolitical tensions.” “Our
Indian business showed broad based growth across our chosen segments due to our sustained focus on customer relationships, our distribution network and our portfolio of brands supported by our agile business model,” he added.
Europe operations also delivered robust performance as the transformation programme undertaken helped to leverage the strong business environment, he said.
Tata Steel Executive Director and CFO Koushik Chatterjee said “while the Indian business continued to perform strongly with an EBITDA per ton of Rs 28,863, our European business generated the highest ever EBITDA of £1,199 million (Rs 12,164 crores).”
As part of the overall policy to reward the shareholders, the board of Tata Steel has recommended a record dividend of Rs 51 per share. It has also recommended splitting of the shares to Re 1 per share face value in a 10:1 split, Chatterjee said.
On April 17, Tata Steel had said its board will consider a stock split proposal and dividend during its meeting on May 3.
According to the company statement, Tata Steel’s consolidated steel output in the quarter under review was at 7.62 million tonnes (MT), down 5 per cent compared to 8.02 MT in same quarter of 2021-22.
Tata Steel sold 8.01 MT steel in the said period, down over 2 per cent from 7.83 MT in the year-ago quarter.