Tata Steel Ltd. reported a 43% decline in third-quarter consolidated net profit to ₹295 crore compared with ₹522 crore in the year-earlier period. Consolidated sales income dropped 3% year-on-year to ₹54,231 crore.
On a standalone basis, the company’s net profit for the quarter declined 17% to ₹3,879 crore from ₹4,699 crore in the year-ago period. Standalone sales income fell 6% YoY to ₹32,306 crore.
“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 tonnes per month in 2024, dampened steel prices globally including in India,” said CEO & MD T.V. Narendran.
“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 tonnes for the quarter. Our growth plans in Kalinganagar are on course,” he added. “In the U.K., 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 tonnes. Subdued steel prices continued to weigh on our performance,” he added.
Koushik Chatterjee, Executive Director and Chief Financial Officer said, “Consolidated EBITDA has improved by 14% YoY aided by steady performance in India and improved profitability at Netherlands. U.K. business is amidst a transition to economically and environmentally viable operations.” Overall, cash flow from operations for the quarter stood at around ₹8,253 crore and was aided by tight working capital management.
The company has spent around ₹3,868 crore on capital expenditure and net debt has declined by around ₹3,000 crore QoQ to ₹85,800 crore. He said Tata Steel’s group liquidity position had remained strong at ₹28,219 crore, with cash and cash equivalents of ₹13,119 crore.
Published – January 27, 2025 08:50 pm IST
