Tata's Steel Stock Is Less Than Rs 4 Away From Hitting 52-Week Low; Q3 Profit Falls 43.5% YoY To Rs 295 Crore

Tata Group-backed steel giant, Tata Steel witnessed huge selling pressure on Monday, January 27, so much so that the stock dipped by 3% in a single day. The key focus in Tata Steel is currently the Q3 results where the company reported a nearly 44% decline year-on-year to Rs 295 crore. Now, Tata Steel is less than Rs 4 away from hitting its 1-year low.

Tata Steel Share Price:

After the market hours of January 27, Tata Steel's stock price closed at Rs 126.40 apiece, down by 2.8% on BSE with a market cap of Rs 1,57,790.72 crore. The stock is now Rs 3.8 away from hitting its 52-week low of Rs 122.60 apiece.

Tata Steel's Q3 Results:

Consolidated net profit stood at Rs 295 crore in Q3FY25, down by 43.5% from its PAT of Rs 522 crore in Q3FY24. The decline was sharper compared to net profit of Rs 759 crore recorded in Q2FY25.

Meanwhile, consolidated revenues for the Oct-Dec quarter were Rs 53,648 crores and EBITDA was Rs 5,994 crores, with an EBITDA margin of around 11%. The company has spent Rs 3,868 crores on capital expenditure during the quarter and Rs 12,450 crores between April - December 2024.

In its audit report, Tata Steel said, India revenues were Rs 32,930 crores for the quarter and EBITDA was Rs 7,921 crores, which translates to an EBITDA margin of 24%. Crude steel production was around 5.69 million tons and was up 6% on a YoY basis. Deliveries stood at 5.29 million tons and were up 8% YoY, driven by steady domestic deliveries and strategic presence in exports.

T V Narendran, Chief Executive Officer & Managing Director said, "The global operating landscape continues to be shaped by geopolitics and continued economic slowdown in key regions. Steel exports from China, which 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, was commissioned in December and has received facility approvals from some of the major automotive OEMs."

Koushik Chatterjee, Executive Director and Chief Financial Officer said, "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."

Tata Steel Corporate Actions:

Tata Steel has given a hefty dividend since its split for the first time in 2022.

Stock Split: The stock split for the first time in July 2022, in the ratio of 1:10, where its face value was adjusted from Rs 10 to Rs 1.

Dividends: The company has delivered three final dividends since its first split. The highest dividend payout was Rs 51 per share in 2022, while Tata Steel delivered Rs 3.60 per share dividend each in 2023 and 2024. Since May 2001, the company has paid up to 30 dividends, as per Trendlyne data. The company has a dividend yield of 2.85% at present.

Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 35 million tonnes per annum.