Calcutta, Feb. 11: Tata Steel today reported a consolidated net profit of Rs 503 crore for the third quarter ended December 31 against a loss of Rs 763 crore in the corresponding quarter a year ago.
Sequentially, however, net profit of the steel maker declined from Rs 917 crore in July-September, on the back of weak demand and spread between steel prices and raw material costs.
Consolidated turnover increased to Rs 36,736 crore from Rs 32,107 crore in the corresponding quarter a year ago.
At the end of the second quarter, consolidated turnover was Rs 36,645 crore.
Steel deliveries during the quarter stood at 6.38 million tonnes against 5.83 million tonnes in the year-ago period and 6.48 million tonnes at the end of the second quarter.
“Indian steel markets continued to remain weak during the quarter with the economy and most of the steel consuming sectors facing severe headwinds,” said T.V. Narendran, managing director of Tata Steel India and Southeast Asia.
“In fact, sales would have been higher if not for production constraints because of planned shutdowns for maintenance. We are hopeful that the sentiment improves in the seasonally strong fourth quarter and with the shutdowns behind us, Tata Steel should achieve robust operational improvement,” Narendran said.
“The underlying performance of the Southeast Asian operations remains strong though there has been some impact of the political instability in Thailand,” he added.
Kaushik Chatterjee, group executive director (finance and corporate) said, “The market conditions continue to be challenging in all geographies with contracted spreads between steel realisations and raw material prices.”