Page 34 - The Indian EYE 100821

Business EYE OCTOBER 08, 2021 | The Indian Eye 34

Quarter 2 profits for India Inc set to go up

by 20% as compared to last year

IT and ITeS companies will have a double-digit revenue growth in the quarter, while

the shortfall in chips will restrict auto industry’s revenue growth to 4-6 per cent

our Bureau 9% QoQ. ‘Industrial Products

New Delhi & Projects’ segment deliveries
increased by 17% QoQ with
n a sign of good economic increased focus on value added
recovery, it was revealed on products. Tata Steel Aashiyana,
IThursday that India Inc is an e-commerce platform for In-
set to post an 18-20 per cent rev- dividual Home builders, regis-
enue growth for July-Septem- tered a 32% QoQ growth with
ber as compared to the year-ago gross revenues of Rs 338 crore
period, domestic rating agency during the quarter.
Crisil said ahead of the filing Tata Steel Europe’s steel
of quarterly earnings by com- production grew by 19% YoY
panies. The handsome growth to 2.56 million tons during the
in the topline will be driven by quarter, however, it declined
both higher volumes and high- by 4% QoQ due to temporary
er commodity prices, the rating operational issues at both the
agency said. Netherlands and UK steelmak-
However, the rising input ing sites. Deliveries were lower
prices may have capped operat- Tata Steel India's overall deliveries increased 12% QoQ on the back of by 7% QoQ due to seasonal
ing profit margin expansion for economic recovery post 2nd wave of COVId-19 impact as well as slowdown in
companies when compared to automotive steel sales amidst
the preceding quarter, the agen- ever, revenue is likely to have to 4-6 per cent. microchip shortages. Deliveries
cy said. Companies had taken a risen 8-10 per cent in the sec- Operating profit margins were lower by 5% YoY due to
cautious approach immediately ond quarter of FY2022 as de- are expected to have improved stock liquidation focus in the
after the onset of pandemic and mand was impacted in the first 1-1.20 per cent when compared previous year.
resorted to a host of cost control quarter due to the second wave with the year-ago period, but Further, Tata Steel South-
measures including salary cuts of Covid-19. For the first half dropped by 0.40-0.80 per cent east Asia’s steel production and
which resulted in businesses be- of fiscal 2022, overall revenue when compared with the June sales volume declined by 17%
ing largely protected even as de- is expected to have reached Rs quarter. QoQ and 5% QoQ, respective-
mand dried up. 15.8 lakh crore, up 30-32 per It was also reported that Tata ly, primarily due to lockdown in
Crisil said the recovery for cent over the first half of fiscal Steel India crude steel produc- Malaysia and Thailand amidst
the Q2 was seen across sectors, 2021, it said. tion grew 2% quarter-on-quar- the spread of COVID-19.
led by higher volumes and com- From a sectoral perspective, ter (QoQ) and 3% year-on-year Tata Steel’s consolidated net
modity prices. Volume gains are it said consumer discretionary (YoY) in Q2 FY22. profit stood at Rs 9,768.34 crore
attributable to a low base of the and construction will be driving Tata Steel India’s overall de- in Q1 June 2021 (Q1 FY22)
second quarter of fiscal 2021, the revenue growth, and tele- liveries increased 12% QoQ on compared with net loss of Rs
which saw regional lockdowns com will also be in the positive the back of economic recovery 4,648.13 crore in Q1 June 2020
and slower economic activity. territory. Aluminium players post 2nd wave of COVID-19. (Q1 FY21). Revenue from op-
Of the 40 sectors represent- are expected to have increased Deliveries were down 8% YoY erations surged 110.3% to Rs
ed by its sample set of 300 com- their revenue by 45-50 per cent, due to lower exports and stock 52,574.34 crore in Q1 FY22 as
panies (excluding financial ser- aided by a 40 per cent estimated liquidation focus in the previ- against Rs 24,997 crore in Q1
vices and oil), 24 are expected to increase in domestic prices and ous year. FY21.
have grown by over 20 per cent, 5-7 per cent increase in volume, The company said it Tata Steel group is among the
it said. If one excludes commod- while the same for steel compa- achieved deliveries volume top global steel companies with
ity-linked sectors such as steel nies will be up to 40 per cent. growth across its target seg- an annual crude steel capacity
products and aluminium, over- IT and ITeS companies will ments. ‘Automotive & Special of 34 million tonnes per annum.
all growth is expected to have have a double-digit revenue Products’ segment deliveries Shares of Tata Steel were down
been a notch lower at 15-17 per growth in the quarter, while the increased by 12% QoQ. Brand- 2.26% at Rs 1286.85. The stock
cent, it added. shortfall in chips will restrict ed Products & Retail’ segment hit a high of Rs 1328.80 and a
On a sequential basis, how- auto industry’s revenue growth deliveries were higher by about low of Rs 1285.65 so far.

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