On a consolidated basis, the steel major's net profit dropped 21% to Rs 7,714 crore on 18.8% increase in net sales to Rs 63128.32 crore in Q1 FY23 over Q1 FY22.
Profit before tax (PBT) before exceptional items declined 2.56% to Rs 11,945 crore in Q1 FY23 from Rs 12,259 crore in Q1 FY22. Exceptional loss stood at Rs 39 crore in Q1 FY23 as against Rs 182 crore in Q1 FY22.
Consolidated production fell 1.78% to 7.74 million tonnes in Q1 FY23 as compared to 7.88 million tonnes in Q1 FY22. Deliveries declined 6.89% to 6.62 million tonnes in Q1 FY23 over 7.11 million tonnes in Q1 FY22.
Adjusted EBITDA fell 9.72% YoY to Rs 14,348 crore during the quarter. Adjusted EBITDA per ton skid 3.15% YoY to Rs 21,661 per ton in Q1 FY23.
The company reported consolidated EBITDA of Rs 15,047 crore (down 7.03% YoY). On quarter on quarter basis, EBITDA margin improved to 24% while EBITDA per ton increased by Rs 3,780 to Rs 22,717.
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The steel maker's net debt stood at Rs 54,504 crore in Q1 FY23. Net Debt to EBITDA was at 0.87x and Net Debt to Equity at 0.48x.
In India, deliveries were marginally lower by 2% YoY due to moderation in exports following the imposition of 15% export duty. Consequently, domestic deliveries were successfully ramped up by leveraging our strong marketing network and agile business model.
The company's India revenue per ton rose by Rs 8,534 QoQ to Rs 83,625 per ton due to long term contracts and product mix. Reported EBITDA stood at Rs 9,582 crore, which translates to an EBITDA per ton of Rs 23,557.
In Europe, the company's revenue per ton increased by 154 QoQ to 1,248 per ton due to long term contracts and product mix. Achieved highest ever quarterly EBITDA at 621 million, which translates to an EBITDA per ton of 290.
T V Narendran, chief executive officer & managing director, said, "This has been a challenging quarter for the Global and Indian economy with rising interest rates, supply chain constraints and slowdown in China due to COVID. Despite these multiple headwinds, Tata Steel has delivered a strong performance with an improvement in margins. Our strong marketing franchise and superior business model in India enabled us to successfully pivot and increase our domestic deliveries to counter the 15% duty imposed on steel exports in the middle of the quarter. We continue to drive value accretive growth in India backed by investments in customer relationships, brands and distribution networks and remain well positioned to benefit from the buoyant automotive & retail housing demand and the government spend on infrastructure. Our European business delivered a sharp improvement in performance as long term contracts and product mix helped drive a strong increase in realizations."
He further added, "We are geared towards commissioning the 6 MTPA pellet plant at Kalinganagar in Q3 FY23 which will drive cost savings followed by the CRM complex and the 5 MTPA expansion project. Our subsidiary, Tata Steel Long Products, has completed the strategic acquisition of Neelachal Ispat Nigam Limited and will drive growth of our long products business. We continue to progress on our sustainability journey and are committed to being net zero by 2045. We are also focused on making Tata Steel more diverse & inclusive and were ranked 3rd among manufacturing companies by Great Place to Work in India."
Koushik Chatterjee, executive director and chief financial officer, said, "Tata Steel continues to deliver operationally and financially despite the complex operating environment, sudden impact of regulatory changes and the heightened volatility in commodity prices. Our Consolidated revenues for the quarter stood at Rs 63,430 crore and our consolidated EBITDA stood at Rs 15,047 crore, despite the sharp rise in input costs especially coking coal and gas prices in Europe. Our EBITDA margin increased QoQ from 22% to 24% and EBITDA per ton increased from Rs 18,937 to Rs 22,717. Consolidated PAT for the quarter stood at Rs 7,714 crore. In India, standalone revenue stood at Rs 32,021 crore and EBITDA was Rs 9,616 crore. In Europe, we achieved highest ever quarterly EBITDA of 621 million, which translates to an EBITDA per ton of 290.
We expect that volatility in terms of steel price and input cost movement to continue in the next quarter but expect the spreads to stabilise 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 expansion. The volatility in commodity prices and immediate impact of the export duty in India have led to an increase in working capital but our cost improvement and other initiatives along with expected pickup in demand in the second half of the year should result in normalisation of working capital. In spite of significant working capital pressures, the Net debt stood at Rs 54,504 crore and our financial metrics continue to remain strong with Net debt to EBITDA." Chatterjee added.
Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 34 million tons per annum.
Shares of Tata Steel were up 0.79% to Rs 968.50 on the BSE.
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