Tata Steel Q1 PAT climbs 51% YoY to Rs 960 cr

Total revenue from operations fell 7.93% year on year (YoY) to Rs 54,771.39 crore in the quarter ended 30 June 2024.

Profit before exceptional items & tax stood at Rs 2,734.75 crore in Q1 FY25, registering a growth of 48.47% as compared with Rs 1,841.95 crore posted in Q1 FY24. The company reported an exceptional item of Rs 357.93 crore during the quarter.

Reported EBITDA in Q1 FY25 stood at Rs 6,822 crore, up 11.43% as compared with Rs 6,122 crore recorded in the corresponding quarter previous year. EBITDA margin was at 12.5% during the quarter.

The company’s consolidated crude steel production increased by 12.2% to 8 million tons in Q1 FY25 as compared to 7.13 million tonnes in Q1 FY24 while Deliveries grew 2.64% to 7.39 million tonnes in Q1 FY25 over Q1 FY24.

The company has spent Rs 3,777 crore on capital expenditure during the quarter.

In India, Tata Steel’s revenues were at Rs 33,194 crores for the June quarter, registering a decline of 8.17 YoY. The company’s crude steel production was around 5.27 million tons and was up 5% on YoY basis. Deliveries stood at 4.94 million tons and were up 3.13 YoY, driven by 4% rise in domestic deliveries.

EBITDA declined 7.67% YoY to Rs 7,029 crore, which translates into an EBITDA margin of 21% during the period under review.

For the quarter, UK revenues were £646 million and EBITDA loss stood at £91 million. Liquid steel production as well as deliveries were 0.68 million tons.

Netherlands revenues were £1,344 million and EBITDA for the quarter was £43 million. On per ton basis, EBITDA improved by £48 per ton on QoQ basis. Liquid steel production was 1.69 million tons and deliveries were at 1.47 million tons, up QoQ and YoY basis.

T V Narendran, CEO & MD, said, ““During the quarter, subdued steel demand across most regions weighed on global steel prices. In India, steel demand was broadly stable despite some impact due to elections and heat waves. In India, our crude steel production was up 5% YoY to around 5.3 million tons. Deliveries at around 4.9 million tons were the ‘best ever 1Q’ sales aided by 4% YoY growth in domestic deliveries.

Among business verticals, automotive witnessed 9% YoY growth aided by higher than market growth in select sub segments. Tata Tiscon continued to grow aided by enhanced reach and scale-up of consumer connect programs. We are focusing on innovative solutions to shape market practices and enhance customer experience to retain leadership in chosen segments. We continue to expand our footprint via new dealer appointments, e-commerce portals and influencers.

Koushik Chatterjee, executive director and chief financial officer, added, “Tata Steel consolidated revenues for the quarter were Rs 54,771 crores and EBITDA was Rs 6,822 crores. Consolidated EBITDA margin was around 12.5%, with an improvement of more than 100 bps on QoQ basis. India revenues were around Rs 33,194 crores and EBITDA was Rs 7,029 crores, which translates to an EBITDA per ton of Rs 14,227 and an EBITDA margin of 21%.

We continue to focus on growth in India and have spent Rs 3,777 crores on capital expenditure during the quarter. Net debt stands at Rs 82,162 crores. Group liquidity position remains strong at Rs 36,460 crores, which includes Rs 10,799 crores of cash and cash equivalents. We also remain focused on cost optimisation, operational improvements and working capital management to maximise cashflows.”

Meanwhile, the company’s board has approved a scheme of amalgamation among Rujuvalika Investments, a wholly owned subsidiary of the company, and Tata Steel and their respective shareholders.

Further, the company’ board also approved to infuse in one or more tranches, an amount up to Rs 35 crore and execute a share purchase & shareholders agreement (SPSA) with Tata Power Renewable Energy (TPREL) and its wholly owned subsidiary TP Parivart, to acquire and hold 26% equity stake in TPPL.

The company has executed the SPSA with TPREL pursuant to which the company is for acquiring 13,000 equity shares (26% equity stake) aggregating to Rs 1,30,000.

Lastly, Tata Steel’s board has approved the proposal to infuse funds, in one or more tranches, up to Rs 6,000 crore, by way of subscription to equity shares of Neelachal Ispat Nigam (NINL), subsidiary of the company, during FY 2024-25.

Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 35 million tons per annum.

Shares of Tata Steel fell 1.94% to currently trade at Rs 162.15 on the BSE.