Mumbai: Tata Steel Ltd reported a consolidated net profit of Rs 759 crore for the quarter ending September 30, 2024, marking a return to profitability after incurring a net loss of Rs 6,511 crore in the same period last year, media reported.
Although the company posted a positive net profit, revenue declined by 3 percent year-on-year to Rs 53,905 crore in Q2FY25, reported Moneycontrol.
The Indian steel sector continued to face challenges from weak pricing due to an influx of cheaper imports, particularly from China, and sluggish demand in the aftermath of the General Elections, which has slowed infrastructure projects.
The loss recorded in the previous years quarter was largely due to a Rs 6,899 crore provision related to restructuring efforts at Tata Steels United Kingdom operations.
This quarter, Tata Steel recorded an additional provision of Rs 34.21 crore for the ongoing closure of heavy-end assets at its UK facility.
During the quarter, the company shut down the second blast furnace at its Port Talbot steelworks in Wales, following previous closures of other furnaces, coke ovens, and related assets.
