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Tata Steel's Q2FY24 Financial Performance Review

Nov 2, 2023

By: BlinkX Research Team

In this financial performance review, we delve into the results of Tata Steel for the second quarter of fiscal year 2024 and analyze key metrics, including revenue, expenses, net profit, and margin.

REVENUE:
Tata Steel reported a total income of ₹55,910, a significant sequential decrease of 7.84%. Year-on-year, the revenue also showed a decrease of -7.14% from ₹60,206 crores in Q2FY23.

EXPENSES: 
The company's total expenses for Q2FY24 amounted to ₹55,853 crores, showing a QoQ decrease of -4.61%. YoY, expenses decreased by -3.17% compared to the corresponding quarter, Q2FY23, when expenses were ₹57,684 crores.

NET PROFIT: 
In the second quarter of fiscal year 2024, Tata Steel reported a net loss of -₹6,511 crores. This marks a significant decline compared to the net profit of ₹524 crores in the preceding quarter. YoY, the net profit saw a drastic reduction, dropping from ₹1,297 crores in Q2FY23.

MARGINS: 
Tata Steel's margin in Q2FY24 was -11.65%, which is a substantial decrease compared to the margin of 0.86% in the preceding quarter. The margin decline YoY was also substantial, falling from 2.15% in Q2FY23 to -11.65% in Q2FY24.

In conclusion, Tata Steel's financial performance in the second quarter of fiscal year 2024 reflects a challenging period, marked by a significant reduction in revenue and a shift from profit to a substantial loss. These declines are attributed to some exceptional items this quarter which include Restructuring and Impairment of Non-Current Assets which ate away from around ₹6,800cr. These costs were under ₹40cr in the previous quarter and the same same period last year.

Stay tuned for more updates on upcoming financial performances.