Tata Steel announces strong Q1 results; net profit soars to Rs 919 crores

Bhubaneswar, July 31: Tata Steel has announced its financial results for the first quarter of the Financial Year 2024-25. The company reported consolidated revenues of Rs 54,771 crores for the April to June 2024 quarter, with an EBITDA of Rs 6,822 crores, achieving an EBITDA margin of approximately 12.5%. The consolidated net profit for the quarter was Rs 919 crores, marking a 75% increase compared to the same quarter last year.

During this period, Tata Steel invested Rs 3,777 crores in capital expenditure. The phased commissioning of the 5 MTPA expansion at Kalinganagar is progressing well, with the blast furnace start-up expected in September 2024. The company’s net debt stands at Rs 82,162 crores, and the group’s liquidity is strong at Rs 36,460 crores, including cash and cash equivalents of Rs 10,799 crores.

In India, Tata Steel reported revenues of Rs 33,194 crores for the quarter, with an EBITDA of Rs 7,029 crores, translating to an EBITDA margin of 21%. Crude steel production reached around 5.27 million tons, up 5% year-over-year, with deliveries at 4.94 million tons, also up year-over-year, driven by a 4% rise in domestic deliveries. The automotive segment saw its best-ever first-quarter sales, and Tata Tiscon deliveries increased by 15% year-over-year, leading to the best-ever quarterly sales.

In the UK, Tata Steel reported revenues of £646 million with an EBITDA loss of £91 million, while in the Netherlands, revenues were £1,344 million with an EBITDA of £43 million for the quarter. Additionally, Tata Steel commenced the closure of heavy-end assets at Port Talbot in the UK, starting with the shutdown of BF #5 in early July 2024, with the closure of BF #4 scheduled for September 2024.

T V Narendran, Chief Executive Officer & Managing Director, commented on the quarter's performance, noting the subdued steel demand across most regions impacting global steel prices. He highlighted the stable steel demand in India despite the elections and heat waves, with crude steel production up 5% year-over-year to around 5.3 million tons. The company’s best-ever first-quarter sales were supported by a 4% year-over-year growth in domestic deliveries. The automotive segment experienced a 9% year-over-year growth, driven by higher than market growth in select sub-segments. Tata Tiscon's growth was aided by enhanced reach and consumer connect programs.

Narendran also mentioned the ongoing 5 MTPA expansion project at Kalinganagar, with the blast furnace start planned for September 2024, and the commissioning of the Continuous Annealing Line of the 2.2 MTPA CRM complex expected in August 2024. He assured support for employees affected by the closure of blast furnaces in the UK and emphasized Tata Steel's commitment to sustainable operations, including the launch of the first carbon bank in India. Additionally, he highlighted the company's efforts in enhancing diversity, noting the deployment of the first-ever crew of female firefighters in the Indian steel industry.