Tata Steel reported that its net profit in the December quarter was down 43 per cent at ₹295 crore against ₹522 crore logged in the same period last year, largely due to lower realisations.
Revenue from sales was down three per cent at ₹53,231 crore (₹54,727 crore) in the quarter under review.
Expenses dipped two per cent to ₹52,118 crore (₹53,351 crore). The company’s EBITDA was up 25 per cent ₹7,155 crore (₹5,742 crore) while the EBITDA per tonne increased 15 per cent to ₹9,263 (₹8,035).
The company recently commissioned 5 MTPA blast furnace at Kalinganagar and currently operating at about 8,500 tonnes per day. It has also commissioned 0.9 MTPA Continuous Annealing Line in December.
UK revenues
The company’s UK revenues were £523 million and EBITDA loss stood at £67 million. Deliveries were 0.57 million tonne and were lower q-o-q due to subdued demand dynamics.
Netherlands revenues were £1,282 million and nil EBITDA for the quarter. Liquid steel production was 1.76 million tonne and deliveries were up at 1.53 million tonne, said the company.
TV Narendran, Chief Executive Officer and Managing Director, Tata Steel said sales growth in India and focus on operational efficiency have aided the company’s performance and improvement in EBITDA even while the global operating landscape continues to be shaped by geopolitics and continued economic slowdown in key regions.
Steel exports from China, which has averaged 9 million tonne per month in 2024, has dampened steel prices globally including in India.
The new blast furnace has produced 0.56 million tonne during the quarter and is ramping up to rated capacity. The Continuous Annealing Line has received facility approvals from some of the major automotive OEMs.
Transition to low carbon steel
In the UK, the company is progressing on the transition to low carbon steel making and closure of heavy end assets has started yielding benefits with improvement in the overall cost, he said.
Operations in the UK and Netherlands was adversely impacted by multi-year low market spreads, last seen in 2015-16.
The company has spent about ₹3,868 crore on capital expenditure and net debt has declined by about ₹3,000 crore q-o-q to ₹85,800 crore.
The Group liquidity position remains strong at₹28,219 crore, with cash and cash equivalents of ₹13,119 crore.
