Tata Steel’s Q2FY25 Results

• Tata Steel reported a 1% quarter-on-quarter (QoQ) decrease in its consolidated revenue for the quarter ended Sept (Q2FY25). On a year-on-year (YoY) basis, its revenue decreased by 3%.
• Its expenses for the quarter were down by 0.1% QoQ and 6% YoY.
• The net profit declined 17% QoQ.
• The earnings per share (EPS) of Tata Steel stood at 0.7 during Q2FY25.

Tata Steel’s Financial Statements for Q2FY25:

Financials:

• Consolidated revenue for H1FY25 were ₹1,08,676 crores. EBITDA improved by 25% YoY to ₹13,046 crores with an EBITDA margin of 12%.
• Consolidated revenue for the July – Sep 2024 quarter were ₹53,905 crores and EBITDA was ₹6,224 crores with an EBITDA margin of around 12%.
• The company has spent ₹4,806 crores on capital expenditure during the quarter and ₹8,583 crores for the half year.
• Net debt stands at ₹88,817 crores. Our group liquidity remains strong at ₹26,028 crores, which includes cash & cash equivalents of ₹10,575 crores.
• India 2 revenues were ₹32,660 crores for the quarter and EBITDA was ₹6,912 crores, which translates to an EBITDA margin of 21%. Crude steel production was 5.28 million tons and was up 5% on YoY basis. Deliveries stood at 5.11 million tons and were up on YoY basis, driven by a 6% rise in domestic deliveries.

Management Commentary:

Mr. T V Narendran, Chief Executive Officer & Managing Director:

• The global market faced challenges with subdued growth and pressure from China's economic conditions.
• India saw improved steel demand but faced price pressure from imports.
• India deliveries reached 5.1 million tons for the quarter and 10.1 million tons for the half-year.
• Domestic deliveries increased by 6% for the quarter and 5% for the half-year YoY.
• The automotive sector experienced growth in high-end product deliveries.
• Tata Tiscon achieved its best-ever 2Q deliveries, up 20% YoY.
• A 5 MTPA blast furnace was successfully commissioned at Kalinganagar in September 2024.

Mr. Koushik Chatterjee, Executive Director and Chief Financial Officer:

• Tata Steel's half-year consolidated revenues were ₹1,08,676 crores, with EBITDA of ₹13,046 crores.
• EBITDA margin improved by approximately 300 bps to 12%, supported by higher India volumes and better profitability in the Netherlands.
• Quarterly consolidated revenue were ₹53,905 crores, with EBITDA of ₹6,224 crores and a 12% margin.
• India revenue for the quarter were ₹32,660 crores, with a 21% EBITDA margin translating to ₹6,912 crores.
• The second blast furnace at Kalinganagar is ramping up well, with more facilities to be commissioned later in the year.
• Equipment orders were placed for the 0.85 MTPA Electric Arc Furnace in Ludhiana.

Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results