More Stories

Informist, Monday, May 12, 2025

 

Please click here to read all liners published on this story

--Tata Steel Jan-Mar consol net profit INR 13.01 bln
--Analysts saw Tata Steel Jan-Mar consol net profit INR 10.78 bln
--Tata Steel Jan-Mar consol net profit INR 13.01 bln vs INR 6.11 bln yr ago
--Tata Steel to pay INR 3.60 per share dividend
--Tata Steel Jan-Mar consol revenue INR 562.18 bln vs INR 586.87 bln yr ago
--Tata Steel to invest up to $2.5 bln in arm T Steel Holdings in FY26
--Tata Steel FY25 consol PAT INR 34.21 bln vs INR 44.37 bln loss year ago
--Tata Steel FY25 consol revenue INR 2.185 tln vs INR 2.292 tln year ago
--Tata Steel Jan-Mar consol reported EBITDA INR 67.62 bln vs INR 66.31 bln
--Tata Steel Jan-Mar consol adjusted EBITDA INR 65.03 bln vs INR 69.69 bln
--Tata Steel Jan-Mar India adjusted EBITDA INR 74.26 bln vs INR 82.84 bln
--Tata Steel Jan-Mar India reported EBITDA INR 74.18 bln vs INR 82.98 bln
--Tata Steel Jan-Mar India adjusted EBITDA per tn INR 13,264 vs INR 15,279
--Tata Steel Jan-Mar consol adjusted EBITDA per tn INR 7,810 vs INR 8,735
--Tata Steel Jan-Mar capex INR 32.20 bln; FY25 capex at INR 156.71 bln

--Tata Steel net debt at INR 825.79 bln on Mar 31

--Tata Steel Jan-Mar realisations in UK, Netherlands dropped QoQ

--Tata Steel Jan-Mar consol realisations dropped YoY across geographies

--Tata Steel Jan-Mar consol coking coal consumption cost declined YoY

 

 

By Rajesh Gajra

 

NEW DELHI – Tata Steel Ltd.'s bottom-line and top-line performances in the March quarter were better than that expected by analysts, but the consolidated revenue fell year-on-year for the 11th consecutive quarter. The company's realisations fell on a year-on-year basis in the March quarter amid a decline in steel prices in India and internationally. The company, however, reported a steady 4.4% on-year increase in consolidated delivery volume to 8.33 million tonnes in the reporting quarter.

 

The company reported a 2.1 times on-year increase in consolidated net profit to 13.01 billion which also beat analysts' estimate of INR 10.78 billion. The revenue from operations declined 4.2% on year to INR 562.18 billion and this was also above the Street view of INR 555.20 billion.

 

Tata Steel reported a 2% on-year increase in earnings before interest, tax, depreciation, and amortisation to INR 67.62 billion in the March quarter. Adjusted for changes on account of foreign currency movement on intercompany debt and receivables, the EBITDA declined 6.7% on year to INR 65.03 billion.

 

The decline in realisations, a 43% rise in purchase of stock-in-trade costs to INR 51.39 billion, and a 50% rise in inventory costs to INR 27.19 billion were the main drag on on-year EBITDA growth in the March quarter. On other hand, a sharp fall of 19% in cost of materials consumed to INR 168.47 billion on the back of drop in coking coal consumption cost, a decline of 4.7% in other expenses to INR 189.32 billion, and a 1.9?cline in employee costs to INR 60.23 billion, aided the EBITDA growth.

 

The consolidated adjusted EBITDA per tonne declined sharply to INR 7,810 in the March quarter from INR 8,735 in the year-ago quarter. In the India operations of Tata Steel, the revenue declined 5.7% on year to INR 346.61 billion due to fall in realisations, but the delivery volume increased 3.3% on year to 5.60 million tonnes according to provisional data released by the company on Apr 7.

 

This led to the reported EBITDA for India operations dropping to INR 74.18 billion in the March quarter from INR 82.98 billion a year ago, and the adjusted EBITDA falling to INR 74.26 billion from INR 82.84 billion. The adjusted EBITDA per tonne also fell sharply to INR 13,264 from INR 15,279.

 

The consolidated bottom-line growth of the company in the latest quarter, despite a poor EBITDA performance, was supported by a 2.6 times rise on year in other income to INR 4.61 billion, tax expenses falling 20% to INR 9.99 billion, and finance costs declining 2.9% to INR 17.89 billion.

 

Sequentially, the consolidated net profit of Tata Steel jumped 4 times. The consolidated revenue from operations increased 4.8% on quarter, amid volume growth and better realisations in India operations even as realisations dropped in the UK and the Netherlands operations.

 

The consolidated adjusted EBITDA declined 9% sequentially due to higher other expenses and inventory drawdown in India and Netherlands, and adverse changes in foreign currency movement. The decline was reined in by sequential decline in coking coal consumptions costs in India and Netherlands.

 

For the full financial year 2024-25 (Apr-Mar), Tata Steel reported a strengthening in its consolidated net profit to INR 34.21 billion from a loss of INR 44.37 billion in the previous year. The consolidated revenue from operations in FY25 declined 4.6% to INR 2.185 trillion.

 

Tata Steel incurred capital expenditure of INR 156.71 billion in FY26, of which INR 32.20 billion was spent in the March quarter. The consolidated net debt of the company was INR 825.79 billion at the end of the latest quarter. The gross debt of Tata Steel moved down to INR 948.01 billion as of Mar 31 from INR 989.19 billion as of Dec 31 due to a INR 52.35 billion reduction in loans.

 

Tata Steel Monday also announced a dividend of INR 3.60 per share. The company also said Monday it has effected a change of accounting policy with regard to its equity investments in subsidiaries in the standalone financial results. The company also announced its decision to infuse around $2.5 billion, or INR 214.11 billion, in a wholly-owned overseas subsidiary T Steel Holdings Pte. Ltd. by way of subscription to equity shares, in one or more tranches, during FY26.

 

On Monday, shares of Tata Steel ended 6.2% higher at INR 151.63 on the National Stock Exchange of India.  End

 

Edited by Akul Nishant Akhoury

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.