Tata Steel Experiences 43.4% Decline in Net Profit to Rs 295.49 Crore for October-December Quarter

Tata Steel has announced a significant drop in its consolidated net profit for the quarter ending December 31, 2024. The profit fell by 43.4% to Rs 295.49 crore, compared to Rs 522.14 crore in the same period last year. This decline is attributed to reduced income, as stated in the company's exchange filing.

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The company's total income for the October-December period decreased to Rs 53,869.33 crore from Rs 55,539.77 crore in the previous fiscal's corresponding quarter. Meanwhile, expenses also saw a reduction, dropping to Rs 52,118.09 crore from Rs 53,351.13 crore in the year-ago period.

Growth and Decarbonisation Efforts

T V Narendran, Tata Steel's CEO and Managing Director, confirmed that their growth initiatives in Kalinganagar are progressing as planned. In the UK, efforts to transition to low-carbon steelmaking are underway. The closure of heavy end assets has already started improving cost efficiency and reducing emissions.

In the Netherlands, Tata Steel is actively engaging with the government to secure support for decarbonising its operations. Koushik Chatterjee, Executive Director and CFO of Tata Steel, highlighted these ongoing discussions.

Production and Deliveries

Tata Steel's India crude steel production increased by 6% to 5.68 million tonnes in the third quarter of this fiscal year compared to 5.35 million tonnes in the same period last year. Deliveries in India rose by 8.4% year-on-year to 5.29 million tonnes due to stable domestic sales and strategic export presence.

In contrast, Tata Steel UK's output was zero for the quarter due to the closure of its blast furnaces in Q2FY2025. Consequently, deliveries fell by 12.5% year-on-year to 0.56 million tonnes.

Financial Position

The company reported that its net debt stands at Rs 85,800 crore. However, Tata Steel maintains strong liquidity at Rs 28,219 crore, which includes cash and cash equivalents amounting to Rs 13,119 crore.

Tata Steel Netherlands recorded liquid steel production of 1.76 million tonnes for the third quarter with deliveries reaching 1.53 million tonnes.

Tata Steel Group remains a major player in the global steel industry with an annual crude steel capacity of 35 million tonnes per annum.