Tata Steel Q4 net profit jumps 112.7% to ₹1,301 crore on lower costs

Tata Steel reports 112.7 per cent YoY rise in Q4FY25 profit, aided by lower raw material cost; full-year profit at ₹3,420 crore after last year's net loss

Tata Steel on Monday reported a 112.7 per cent year-on-year (Y-o-Y) jump in consolidated net profit to ₹1,300.81 crore during the fourth quarter of the just-concluded financial year (Q4FY25). In the year-ago period, its net profit had stood at ₹611.48 crore.

 

Revenue from operations on a consolidated basis stood at ₹56,218.11 crore in Q4FY25, down by 4.2 per cent Y-o-Y.

 

The net profit came in ahead of the Bloomberg consensus estimate of ₹1,160 crore but revenue fell short of expectation. The estimate for revenue was ₹57,295 crore. Sequentially, revenue was up 4.8 per cent and net profit up 298 per cent.

 

 

Tata Steel’s India turnover stood at ₹34,661 crore in Q4FY25 compared to ₹36,770 crore in Q4FY24. Reported profit after tax (PAT) was at ₹3,141 crore compared to ₹3,897 crore in Q4FY24.

 

In the Netherlands, total revenue from operations at ₹14,769 crore in Q4FY25 was higher than ₹13,908 crore in Q4FY24. Ebitda (earnings before interest, taxes, depreciation and amortisation) stood at ₹124 crore in Q4FY25 compared to an Ebitda loss of ₹296 crore in Q4FY24.

 

In the UK, total revenue from operations was at ₹6,001 crore in Q4FY25 compared to ₹6,800 crore in Q4FY24. Ebitda loss at ₹873 crore in Q4FY25 widened from an Ebitda loss of ₹388 in Q4FY24.

 

For the full year FY25, Tata Steel’s consolidated revenue stood at ₹2.18 trillion (₹218,542.51 crore), down by 4.6 per cent. The company recorded a net profit of ₹3,420.51 crore compared to a net loss of ₹4,437.44 crore.

 

Tata Steel’s India Ebitda was at ₹29,285 crore for FY25, which translated to an Ebitda margin of 22 per cent. However, consolidated Ebitda was at ₹25,802 crore for FY25.

 

T V Narendran, managing director and chief executive officer (MD&CEO) of Tata Steel, said: “FY25 has been an important transition year for Tata Steel, with significant developments across operating geographies. We commissioned India’s largest blast furnace at Kalinganagar, safely decommissioned two blast furnaces in the UK, and achieved production levels near rated capacity in the Netherlands.”

 

“Deliveries in the UK were 2.5 million tonnes (mt) as we smoothly transitioned to supplying our customers on the basis of imported substrate processed at our downstream mills, while fixed costs have reduced by around 230 million pound, the benefit was not visible due to surging imports,” he added.

 

In the Netherlands, deliveries were 6.25 mt, and for the quarter they were 1.75 mt, the highest in the last six years.

 

Koushik Chatterjee, executive director and chief financial officer (ED&CFO), said consolidated Ebitda (for FY25) improved by 10 per cent Y-o-Y aided by higher volumes and reduction in controllable costs despite the drop in realisations.

 

Chatterjee said the company was focused on cost takeouts to enhance competitiveness and had already achieved ₹6,600 crore during the year compared to FY24 levels, of which ₹2,600 crore was in the UK, ₹2,800 crore was in India, and ₹1,150 crore was in the Netherlands. The cost transformation programme would continue in the future, he said, adding that the company’s net debt stood at ₹82,579 crore.

 

During the year, the company spent ₹15,671 crore on capital expenditure.

 

The board has recommended a dividend of ₹3.60 per ordinary (equity) share of face value of ₹1 each.

 

Tata Steel also said that it proposed to infuse funds up to $2.5 billion (approximately ₹21,410.95 crore) in T Steel Holdings Pte Ltd (TSHP) in the form of equity subscription. TSHP is a wholly owned subsidiary.