Tata Steel Q1 profit falls 21% to `7,714 cr on higher costs

New Delhi: Domestic steel major Tata Steel on Monday posted a 21 per cent fall in its consolidated net profit to Rs 7,714 crore for Q1 due to higher materials and finance costs.

The company had reported a net profit of Rs 9,768 crore in the same period of 2021-22, the firm said in regulatory filing. Total income of the company was at Rs 63,698.15 crore in Q1 this year against Rs 53,627.66 crore in Q1 of FY2021-22.

Its expenses including the cost of materials consumed and the finance cost, increased to Rs 51,912.17 crore from Rs 41,490.85 crore in Q1 of FY22. In a separate statement, the company said its consolidated steel production was at 7.74 million tonne (MT) in Q1 of FY23, down 1.77 per cent from 7.88 MT in the same quarter a year ago. The company's sales also fell to 6.62 MT in teh quarter from 7.11 MT in April-June FY22.

Tata Steel CMD T V Narendran said April-June has been a challenging quarter for the global and Indian economy with rising interest rates, supply chain constraints and slowdown in China due to COVID-19.

"We continue to drive value accretive growth in India backed by investments in customer relationships, brands and distribution networks and remain well positioned to benefit from the buoyant automotive & retail housing demand and the government spend on infrastructure," he said.