Shares of Tata Steel Long Products were locked in the 20% upper circuit band at Rs 403 on the BSE on Wednesday in an otherwise weak market after the company reported a consolidated net profit of Rs 59.06 crore in July-September quarter (Q2FY21). The company, formerly known as Tata Sponge Iron, had posted net loss of Rs 197 crore in the year-ago quarter.
The maker of steel and allied products, reported 52% year on year (YoY) growth in revenue from operations at Rs 1,186 crore in Q2FY21 as against Rs 653 crore in the corresponding quarter of the previous fiscal. It reported EBITDA (earnings before interest, taxes, depreciation, and amortization) of Rs 199 crore during the quarter, compared with loss of Rs 30 crore in the previous-year quarter.
During 2QFY21, the global economic activity started to recover with phased relaxations in lockdown measures. However, the pace of improvement has been varying across the geographies. The company, on its part, continues to stay focused on aggressively managing costs and cashflows.
It has achieved the highest ever quarterly steel deliveries of 0.18 mn tons which translates into a 54% quarter on quarter and 53% YoY growth. We reduced exports to 31 per cent of overall deliveries in 2QFY21 and sharply ramped up domestic deliveries to 0.12 mn tons which translate to an increase of 138% QoQ and 7% YoY.
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