Tata Steel posted a very good set of numbers for Q1FY19, with net profit more than doubling.
The company posted a consolidated net profit of Rs.1954 crore, up 112% (YoY) and this jump is despite the exceptional loss of Rs.344 crore which included loss of Rs.115 crore on account of sale of stake in a SE JV.
Operational efficiency is what helped as can be seen from the 27.5% rise in revenue at Rs.37,833 crore. EBITDA came in at Rs.6,559 crore, up 33%. In fact its EBOTDA/tonne was up from Rs.8479 to Rs.10,011.
Its consolidated volumes were up 12% at 6.55 million tonnes while realization was at Rs,57,151/tonne.
There has been a surge in debt though – gross debt at end of March was at Rs.92,147 crore but at end of June, the same has risen to Rs.1,16,615 crore while net debt is at Rs.1,03,529 crore.
The stock price has reacted positively to these numbers with price going up over 3% at Rs.587.