Mumbai, swa news : Tata Steel today announced its financial results for the quarter and nine months ended December 31, 2024. Consolidated revenues for the first nine months of the financial year stood at Rs 1,62,324 crores. Consolidated revenues for the Oct – Dec quarter were Rs 53,648 crores, while India revenues of the company stood at Rs 32,930 crores for the quarter.
The company reported a consolidated Profit after Tax (PAT) of Rs 295 crores for Q3FY25.
India PAT for Q3FY25 stood at Rs 3,865 crores. Crude steel production was around 5.69 million tons, up 6% on a YoY basis. Deliveries stood at 5.29 million tons, up 8% YoY, driven by steady domestic deliveries and a strategic presence in exports.
The company’s recently commissioned 5 MTPA blast furnace at Kalinganagar is presently operating at around 8,500 tpd, and ramp-up to rated capacity is underway. Tata Steel has also commissioned a 0.9 MTPA Continuous Annealing Line (CAL) in December.
Mr. T V Narendran, Chief Executive Officer & Managing Director, Tata Steel, said, “The global operating landscape continues to be shaped by geopolitics and continued economic slowdown in key regions. Steel exports from China, which have averaged 9 million tons per month in 2024, have dampened steel prices globally, including in India. Growth in deliveries in India and focus on operational efficiency have aided our performance on EBITDA improvement.”
“Our deliveries in India grew 8% YoY to 5.29 million tons for the quarter and 6% YoY to 15.3 million tons for 9MFY25. Our growth plans in Kalinganagar are on course. The new blast furnace has produced ~0.56 million tons during the quarter and is ramping up to rated capacity. The Continuous Annealing Line (CAL), which is a part of the 2.2 MTPA CRM complex, has been commissioned in December and has received facility approvals from some of the major automotive OEMs,” he said.
“We continue to build our position in our chosen segments. We registered growth in high-end product deliveries in the automotive segment, and in retail, Tata Tiscon achieved its best-ever quarterly deliveries with a 20% YoY increase in 9MFY25. In the UK, we are progressing on the transition to low-carbon steelmaking. The closure of heavy-end assets has started yielding benefits with improvement in the overall cost and emissions profile. In the Netherlands, our deliveries stood at ~1.5 million tons. Subdued steel prices continued to weigh on our performance. We are progressing on enhancing sustainability in our operations at all our sites and on our commitment to diversity and inclusion. Recently, we operationalised an all-women shift at our Noamundi iron ore mine, a first in India,” Mr. Narendran added.
The company spent Rs 3,868 crores on capital expenditure during the quarter and Rs 12,450 crores between April – December 2024.
Mr. Koushik Chatterjee, Executive Director and Chief Financial Officer, Tata Steel, said, “Tata Steel’s consolidated revenues for the first nine months of the financial year were Rs 1,62,324 crores and EBITDA was Rs 19,040 crores. Consolidated EBITDA has improved by 14% YoY, aided by steady performance in India and improved profitability in the Netherlands. The UK business is amidst a transition to economically and environmentally viable operations. Consolidated revenues for the quarter stood at Rs 53,648 crores and EBITDA was Rs 5,994 crores, which translates to a margin of 11%. India revenues were around Rs 32,930 crores, and with a margin of 24%, the EBITDA works out to around Rs 7,921 crores. Both in the UK and the Netherlands, our performance has been adversely impacted by multi-year low market spreads, last seen in 2015-16. Despite this, UK EBITDA improved by £115 per ton QoQ, primarily driven by fixed cost takeout upon closure of the heavy-end assets by September 2024.
“There was an improvement in fixed costs, on an absolute basis, of £70 million in 3Q vs. 2Q, and for the nine-month period, the same was around £140 million on a YoY basis. Overall, cash flow from operations for the quarter stood at around Rs 8,253 crores and was aided by tight working capital management. We have spent around Rs 3,868 crores on capital expenditure and net debt has declined by around Rs 3,000 crores QoQ to Rs 85,800 crores. Our group liquidity position remains strong at Rs 28,219 crores, with cash and cash equivalents of Rs 13,119 crores. We have placed equipment orders for the ~3 MTPA Electric Arc Furnace in the UK. Separately, we have started receiving equipment on site for our 0.85 MTPA Electric Arc Furnace in Ludhiana and are progressing with civil works. The ramp-up of operations in Kalinganagar will help improve India’s cost profile upon fixed cost absorption. In the Netherlands, we continue to engage with the government on support for the decarbonisation of our operations,” Mr. Chatterjee added.
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