Mumbai: Tata Steel today reported its financial results for the quarter ended September 30, 2024. For the first half of FY25, Tata Steel reported consolidated revenues of ₹1,08,676 crores. EBITDA improved by 25% year-on-year to Rs 13,046 crores with an EBITDA margin of 12%.
In the July-September 2024 quarter, the company posted consolidated revenues of Rs 53,905 crores and an EBITDA of Rs 6,224 crores, with an EBITDA margin of around 12%.
Tata Steel spent Rs 4,806 crores on capital expenditure during the quarter and Rs 8,583 crores for the half-year.
The company’s net debt stands at Rs 88,817 crores and group liquidity remains strong at Rs 26,028 crores, which includes cash & cash equivalents of Rs 10,575 crores.
Revenues from Tata Steel’s India operations for the quarter were Rs 32,660 crores, with an EBITDA of Rs 6,912 crores and an EBITDA margin of 21%. Crude steel production in India increased by 5% year-on-year to 5.28 million tons, while deliveries rose to 5.11 million tons, driven by a 6% increase in domestic demand. For the half-year, revenues were Rs 65,853 crores and EBITDA was Rs 13,946 crores.
In September 2024, Tata Steel successfully commissioned India’s largest blast furnace at Kalinganagar. With ramp up of Kalinganagar facilities, India crude steel capacity will increase to 26.6 MTPA.
In UK, the remaining blast furnace at Port Talbot was closed to pave the way for next generation of green steelmaking. During the quarter, revenues were £600 million and Liquid steel production was 0.39 million tons while deliveries were 0.63 million tons.On half year basis, Revenues were £1,246 million.
Netherlands revenues were £1,300 million and EBITDA for the quarter was £22 million. Liquid steel production at 1.66 million tons and deliveries at 1.50 million tons, were up on year-on-year basis. On half year basis, Revenues were £2,644 million and EBITDA was £65 million.
Management Comments:
Mr. T V Narendran, Chief Executive Officer & Managing Director:
“Global operating environment remained complex, with key regions facing subdued growth. Macro-economic conditions in China continued to weigh on commodity prices including steel. In India, steel demand continued to improve but domestic prices were under pressure due to cheap imports. Despite this, Tata Steel has delivered broadly consistent performance, with India deliveries at 5.1 million tons for the quarter and 10.1 million tons for the half year. Domestic deliveries rose by 6% for the quarter and 5% for the half year on YoY basis. Among business verticals, automotive deliveries were aided by growth in hi-end products. Tata Tiscon achieved ‘best ever 2Q’ deliveries and was up 20% YoY. In September 2024, we successfully commissioned the 5 MTPA blast furnace at Kalinganagar. This coupled with the 2.2 MTPA CRM complex will further improve our product mix. 2Q also marked the closure of our blast furnaces in UK. We have signed the grant funding agreement with the UK government and are progressing on the proposed transition to green steel. We remain fully committed to supporting affected employees and have offered the best ever package of support in Tata Steel UK. In Netherlands, our deliveries stood at 1.5 million tons and subdued steel prices weighed on performance. We are undertaking pilot projects to avoid or convert captured carbon emissions. I am happy to share that we have achieved 20% diversity for the first time in India and have also been recognised by worldsteel for process safety management.”
Mr. Koushik Chatterjee, Executive Director and Chief Financial Officer:
“Tata Steel Consolidated revenues for the half year were Rs 1,08,676 crores and EBITDA was Rs 13,046 crores. Consolidated EBITDA margin witnessed an improvement of around 300 bps to 12%, aided by higher volumes in India and improved profitability at Netherlands. This was despite challenging operating environment across geographies. Consolidated revenues for the quarter stood at Rs 53,905 crores and EBITDA was Rs 6,224 crores, which translates to a margin of 12%. India revenues were around Rs 32,660 crores and margin of 21% works out to an EBITDA of Rs 6,912 crores. Our second blast furnace at Kalinganagar is ramping up well and associated facilities such as Continuous Annealing Line and Air Separation Unit will be commissioned in the later part of the year. Separately, we have placed equipment orders for our 0.85 MTPA Electric Arc Furnace plant in Ludhiana. Our performance in UK and Netherlands was adversely impacted by the compression in steel spreads. Further, UK was also weighed by the transitory nature of operations as the blast furnaces were safely decommissioned and steel stock was built up to operate downstream. We spent around Rs 8,583 crores on capital expenditure during the half year, mostly in India. Our net debt stands at Rs 88,817 crores and the group liquidity position remains strong at Rs 26,028 crores, with cash and cash equivalents of Rs 10,575 crores. We are focused on cost optimisation, operational improvements and working capital management to maximise cashflows. With respect to the UK transition, we have signed a contract with Tenova to deliver a state-of the-art Electric Arc Furnace. We have completed public consultation on the planning application and anticipate commencing large scale site work around July 2025. During our transition to green steel, we will operate our downstream operations by sourcing substrate. This will help us sustain our significant market presence across steel end use segments in UK. In Netherlands, we are engaged with the government on support for the decarbonisation of our operations.”
