Tata steel reports robust volumes in the March quarter

Tata SteelNSE 4.08 %, Asia’s oldest maker of the primary infrastructure alloy, reported robust volumes in the March quarter in which realisations declined in kilter with global prices, pointing to marginal gains for future profitability as overseas prices partially revive from recent lows. Despite 16.2 per cent higher sales volumes over the preceding quarter, total consolidated revenues climbed 9.2 per cent to Rs 42,424 crore (estimated Rs 43,725 crore). Revenues climbed 26 per cent on year, paced by the Bhushan Steel acquisition and Kalinga Nagar expansion. But a sequential comparison is more appropriate as the previous year’s performance excludes Bhushan Steel’s operations. EBIDTA climbed 8.3 per cent on quarter to Rs 7,814 crore. However, EBIDTA/tonne was Rs 13,619, compared with Rs 16,408 in the preceding quarter, mainly due to Indian operations that now constitute 60 per cent of total revenues and even higher by way of operating profits.