Tata Steel Q2 results: Net profit at Rs 833.45 crore due to lower expenses

T V Narendran, chief executive officer and managing director of Tata Steel, said the global operating environment remains complex, with key regions experiencing subdued growth

Tata Steel on Wednesday reported a consolidated net profit of Rs 833.45 crore during the quarter ended September (Q2FY25), aided by lower expenses.

 

In the year-ago period, the company posted a net loss of Rs 6,196.24 crore, largely on account of impairment charges and restructuring costs in the UK.

 

Total revenue on a consolidated basis in Q2FY25 at Rs 53,904.71 crore was down 3.2 per cent year-on-year (Y-o-Y).

 

Both revenue and net profit came in ahead of the Bloomberg consensus estimates at Rs 53,104.3 crore and Rs 451.7 crore, respectively.

 

Sequentially, revenue was down 1.6 per cent, primarily due to lower realisations in India and the Netherlands. Net profit was down 13.1 per cent quarter-on-quarter (Q-o-Q). 

 

 

T V Narendran, chief executive officer (CEO) and managing director (MD), Tata Steel, said the global operating environment remained complex, with key regions facing subdued growth.

 

“Macro-economic conditions in China continued to weigh on commodity prices, including steel. In India, steel demand continued to improve but domestic prices were under pressure due to cheap imports. Despite this, Tata Steel has delivered a broadly consistent performance. India deliveries were at 5.1 million tonnes for the quarter and 10.1 million tonnes for the half year,” he said.

 

During Q2FY25, Tata Steel’s India turnover was at Rs 32,660 crore compared to Rs 34,897 crore a year back.

 

Reported profit after tax (PAT) was at Rs 3,460 crore compared to a loss of Rs 8,814 crore in the same period last year.

 

In September, Tata Steel commissioned the 5 million tonne per annum (mtpa) blast furnace at Kalinganagar.

 

This, coupled with the 2.2 mtpa CRM (cold rolling mill) complex, would further improve the product-mix, Narendran said.

 

The company spent around Rs 8,583 crore on capital expenditure during the first half of the year, most of which was in India.

 

In the UK and Netherlands, the performance was adversely impacted by the compression in steel spreads, Koushik Chatterjee, executive director (ED) and chief financial officer (CFO), Tata Steel, said.

 

During the quarter, UK revenues were at pound 600 million and earnings before interest, taxes, depreciation and amortisation (Ebitda) loss stood at pound 147 million.

 

Netherlands revenues were at pound 1,300 million and Ebitda for the quarter was pound 22 million.

 

Chatterjee said the UK was also weighed by the transitory nature of operations as the blast furnaces were safely decommissioned and steel stock was built up to operate downstream.

 

Q2 in the UK was marked by the closure of blast furnaces, paving the way for green steelmaking at Port Talbot.

 

The grant funding agreement with the UK government for pound 500 million was signed in September and the company expects to start large-scale site work around July 2025.

 

“In the Netherlands, we are engaged with the government on support for decarbonisation of our operations,” Chatterjee said.