The steel industry has been hit by the decline in spreads and high energy prices, particularly in Europe. The company’s EBITDA was Rs 6,271 crore compared to RS 16,618 crore in the previous year’s second quarter. The consolidated EBITDA was Rs 5,817 crores. PAT was Rs 1297 crore versus RS 12548 crore in the previous year’s second quarter

Tata Steel reported a net profit of 1,297 crore in the September quarter, down from 12,548 crore in theQ2 of  previous year.

Production in Q2 of FY 2022-2023 was 7.56 million tonnes, compared to 7.77 million tonnes in Q2 of FY 2021-2022.

Revenue from operations was Rs 59,878 crore compared to RS 60,387 crore in the previous year’s second quarter.

Revenues fell primarily as a result of lower realisations across geographies and lower volumes in Europe. The company reported raw material costs of Rs 31,246 crore versus Rs 22,162 crore in the previous year’s second quarter.

The steel industry has been hit by the decline in spreads and high energy prices, particularly in Europe. The company’s EBITDA was Rs 6,271 crore compared to RS 16,618 crore in the previous year’s second quarter. The consolidated EBITDA was Rs 5,817 crores.

PAT was Rs 1297 crore versus RS 12548 crore in the previous year’s second quarter.

Global steel prices continued to fall from July to September, owing to concerns about global recovery and seasonal dynamics. Despite announced stimulus measures, China’s economic slowdown has weighed on domestic demand.

Iron ore and coking coal prices have fallen by 15 to 20%. Energy prices, particularly natural gas prices in Europe, remain high. Steel spot spreads in Europe remain above $300/t, but spreads that include natural gas, electricity, and carbon costs are lower.

Going forward, the company expects China steel output to moderate due to winter cuts, even as demand is supported by government stimulus measures. Prices will level off as the supply-demand dynamics for steel improve. The company anticipates that Coking coal will be range bound.

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