Tata Steel Q4 profit more than doubles to Rs 1,200 crore on higher volumes, cost control
Tata Steel reported a more than two-fold increase in its consolidated net profit to Rs 1,200.88 crore for the March quarter, driven by higher volumes and reduced controllable costs, despite lower realisations.The company had posted a net profit of Rs 554.56 crore in the same period a year earlier, according to an exchange filing. However, total income for the quarter declined to Rs 56,679.11 crore from Rs 58,863.22 crore in the year-ago quarter. Expenses were brought down to Rs 54,167.61 crore from Rs 56,496.33 crore in the corresponding period last year. For the full financial year FY25, Tata Steel reported a net profit of Rs 3,173.78 crore, compared to a loss of Rs 4,909.61 crore in the previous fiscal. The Board has recommended a dividend of Rs 3.60 per ordinary (equity) share of face value Re 1 each (360%) for FY25, according to news agency PTI. Additionally, the board approved a proposal under foreign exchange regulations to infuse up to USD 2.5 billion (Rs 21,410.95 crore) in its wholly-owned foreign subsidiary, T Steel Holdings Pte Ltd (TSHP), through equity subscription in one or more tranches during the current fiscal. During Q4, Tata Steel’s India operations generated revenues of Rs 34,661 crore and reported EBITDA of Rs 7,418 crore, translating to an EBITDA margin of 21%. Crude steel production stood at 5.44 million tonnes, lower on a quarter-on-quarter basis due to a blast furnace reline at Jamshedpur. Deliveries rose 6% QoQ to 5.60 million tonnes. In the UK, revenue stood at 551 million pounds, with an EBITDA loss of 80 million pounds. Deliveries rose 12% QoQ to 0.63 million tonnes. The company spent Rs 3,220 crore on capital expenditure during the quarter and Rs 15,671 crore for the full year. Tata Steel’s net debt stood at Rs 82,579 crore, while group liquidity remained strong at Rs 38,791 crore, including Rs 12,222 crore in cash and cash equivalents. “Tata Steel Consolidated revenues for FY2025 were around USD 26 billion, and EBITDA was USD 3.1 billion. Consolidated EBITDA improved by 10% YoY, aided by higher volumes and reduction in controllable costs despite the drop in realisations,” said Koushik Chatterjee, Executive Director and Chief Financial Officer. Neelachal Ispat Nigam Limited achieved annual EBITDA of around Rs 1,000 crore with a margin of 19%, and generated free cash flow in excess of Rs 1,000 crore. The company was closed at the time of acquisition nearly three years ago, marking a significant turnaround. CEO and Managing Director TV Narendran stated, “FY25 has been an important transition year for Tata Steel with significant developments across operating geographies.” He noted that the company commissioned India’s largest blast furnace at Kalinganagar, safely decommissioned two blast furnaces in the UK, and reached near-rated capacity production levels in the Netherlands. “India deliveries were the best ever at around 21 million tonnes and were up 5% YoY, aided by a smooth ramp-up of the new blast furnace at Kalinganagar and capacity utilisation close to 100% at the remaining operations. “We have invested more than Rs 1,600 crores on R&D in the last 5 years, enabling us to become the first Indian steel supplier to have end-to-end capabilities in hydrogen transportation and to localise CP780 automotive grade, demonstrating our customer centricity,” Narendran added.
