Tata Steel net falls 65% to ₹555 cr on lower India prices – ET Infra

MUMBAI: Tata Steel’s consolidated net profit for the quarter ended March plunged by two-thirds year on year to ₹555 crore as lower selling prices in India weighed on the consolidated performance of the multinational steelmaker.

The firm’s consolidated revenue during the quarter fell around 7% on year to ₹58,678 crore, while its earnings before interest, tax, depreciation and amortisation (Ebitda) declined more than 8% at ₹6,631 crore. Operations in India, which are the company’s mainstay and account for almost 70% of the volumes, saw a marginal decline in sales and operating profit for the quarter.

Tata Steel made an operating profit of ₹15,237 per tonne of steel sold in India in the fourth quarter ended March, compared to ₹16,488 per tonne last year. Its sales in the country stood at ₹36,864 crore, down 4.5% on year.

For the full 2023-24, the company saw a marginal uptick for sales in India, while sales volumes and production hit an all-time high.

“In India, which is a structurally attractive market, we have delivered improved margins and continued to expand our footprint in terms of volumes as well as product portfolio,” said T V Narendran, CEO of Tata Steel.

The company is adding 5 million tonnes of capacity at its plant in Kalinganagar, and spent ₹18,207 crore on capital expenditure through FY24. Its operating margins in India improved by 200 basis points to 22% during the year. “FY24 has been a year of progress for Tata Steel with transition towards stated goals in India and abroad despite the challenging operating environment,” Narendran said.

For its operations in the UK, the company decided to go ahead with its proposal of shutting down heavy-end assets, and setting up an electric arc furnace by 2027.

Both Tata Steel UK and Tata Steel Netherlands remained loss-making at an operational level during Q4, but the losses were lesser as compared to the previous year.

The company said it will raise ₹3,000 crore through the issue of non-convertible debentures on a private placement basis.

The board of Tata Steel has also approved infusing up to $2.11 billion in its wholly owned subsidiary T Steel Holdings Pte in the current fiscal through one or more tranches. The company will also convert debt instruments worth $565 million into equity shares during the year.

  • Published On May 30, 2024 at 12:37 PM IST

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