Tata Steel Ltd. reported a 21% sequential decline in consolidated net profit for the June quarter as a one-time loss weighed on earnings, even as revenue and operating profit came in ahead of analysts' estimates.
The steelmaker posted a consolidated net profit of Rs 2,318 crore for the first quarter, down 20.8% from Rs 2,926 crore in the previous quarter. The reported profit was below the Bloomberg consensus estimate of Rs 2,759 crore, according to exchange filings and Street estimates.
Revenue from operations declined 3.9% quarter-on-quarter to Rs 60,794 crore from Rs 63,270 crore. However, the topline exceeded analysts' estimate of Rs 58,155 crore.
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Operating performance remained relatively resilient. Earnings before interest, tax, depreciation and amortisation (EBITDA) stood at Rs 9,264 crore, down 5.7% sequentially from Rs 9,828 crore, but ahead of the estimated Rs 9,078 crore.
The company's EBITDA margin eased to 15.2% from 15.5% in the March quarter, broadly in line with expectations of 15.6%.
Tata Steel said its June-quarter earnings were impacted by a one-time loss of Rs 345 crore, which weighed on the bottom line during the period. The results were announced by the company in an exchange filing on Thursday.
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Tata Steel Q1 Result Highlights (Cons, QoQ)
Net Profit down 20.8% at Rs 2,318 crore versus Rs 2,926 crore (Estimate: Rs 2,759 crore).
Revenue down 3.9% at Rs 60,794 crore versus Rs 63,270 crore (Estimate: Rs 58,155 crore).
Ebitda down 5.7% at Rs 9,264 crore versus Rs 9,828 crore (Estimate: Rs 9,078 crore).
Ebitda Margin at 15.2% versus 15.5% (Estimate: 15.6%).
One-time loss of Rs 345 crore in Q1.
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