Tata Steel has reported a strong set of numbers for the fourth quarter of fiscal year 2024–25, with consolidated profits more than doubling even as international challenges persist. Here’s a closer look at the key highlights:
Q4 Consolidated Results at a Glance
- Net Profit: ₹1,301 crore, up 113% year-on-year
- Revenue: ₹56,218 crore, down 4% year-on-year
- EBITDA (Operating Profit): ₹6,762 crore, broadly flat
- Dividend Declared: ₹3.60 per share
Despite a slight drop in revenue—driven mainly by softer steel prices in India—the company’s net profit more than doubled compared with the same quarter last year. The board has approved a dividend of ₹3.60 per share, rewarding shareholders for the strong earnings.
Strong Performance in India, Record Volumes
- Standalone Net Earnings (India): ₹3,141 crore, down 19% year-on-year
- Domestic Sales Volume: 21 million tonnes, up 5% year-on-year
India operations delivered healthy earnings, though Q4 profit fell 19% from a year ago because domestic steel prices softened. On the positive side, sales volumes hit a record high of 21 million tonnes, thanks in large part to the ramp-up of the new blast furnace at Kalinganagar, Odisha.
Strategic Transitions in FY25
Tata Steel described FY25 as a year of “strategic transitions,” including:
- Commissioning India’s largest blast furnace at Kalinganagar.
- Decommissioning two blast furnaces in its UK operations.
- Stabilising production in the Netherlands after maintenance-related disruptions.
These moves aim to optimise costs, improve efficiencies, and set the stage for greener, more flexible steelmaking.
Global Business: A Mixed Bag
UK Operations
- EBITDA Loss: ₹873 crore in Q4 (versus a ₹388 crore loss a year earlier)
- Next Steps: Supplying more imported steel to UK customers; starting construction of a new electric arc furnace (EAF) at Port Talbot by July 2025
The UK unit’s losses widened as the company works to transition Port Talbot for flexible, low-carbon steelmaking. Introducing imported slabs should ease cash costs while the new EAF is built.
Netherlands Operations
- EBITDA: ₹124 crore in Q4, swinging back from a ₹296 crore loss a year earlier
- Production: Returned to full rated capacity after prior-quarter maintenance
Dutch business made a clear recovery. Tata Steel is also in ongoing talks with the Dutch government on its decarbonisation plans—a key step for meeting future emissions targets.
Funding Overseas Restructuring
Looking ahead, Tata Steel plans to inject $2.5 billion (about ₹21,400 crore) into its Singapore-based holding company, T Steel Holdings, in FY26. This capital will refinance debt and fund restructuring costs for its overseas units, easing financial pressure as international operations turn more competitive.
Market Reaction
When trading opened after the results:
- Opening Price: ₹152
- Intraday Low: ₹149.15
- Price by 11:38 AM IST: ₹150.60 (down 0.68%)
Share prices dipped slightly as investors weighed the strong domestic earnings against ongoing losses in Europe and cautious outlook for steel prices.
Disclaimer: This news is solely for educational purposes. The securities and investments mentioned here are not recommendations.
