Tata Steel Q1 profit rises as higher revenue and EBITDA offset exceptional loss

Tata Steel reported a nearly 12% rise in consolidated net profit for the June quarter, supported by strong revenue growth and improved operating performance, although earnings came in marginally below a CNBC-TV18 poll expectations. The steelmaker also reported a higher exceptional loss during the quarter.

The company posted a consolidated net profit of ₹2,318.4 crore for the quarter ended June, up 11.6% from ₹2,077.7 crore a year ago. The figure, however, was slightly below the CNBC-TV18 poll estimate of ₹2,391 crore.

Revenue from operations rose 14.3% year-on-year to ₹60,794.3 crore, comfortably beating the CNBC-TV18 estimate of ₹57,998 crore, as the company benefited from higher sales realisations and improved business momentum.

Operating performance also strengthened during the quarter. EBITDA (earnings before interest, taxes, depreciation, and amortization) increased 24.7% to ₹9,264.3 crore, compared with ₹7,428 crore in the corresponding period last year, broadly in line with the CNBC-TV18 poll estimate of ₹9,252 crore.

EBITDA margin also improved to 15.24% from 14% a year earlier, reflecting better operating leverage. However, the margin was slightly below the Street estimate of 16%.

The quarter included an exceptional loss of ₹345.5 crore, significantly higher than the ₹132 crore reported in the year-ago period, weighing on the company’s bottom line.