Tata Steel Q3 results: Net profit down 36% to Rs 326 cr on subdued prices

Total revenue on a consolidated basis stood at Rs 53,648 cr in Q3, down 3.01%

Tata Steel on Monday reported a 36.37 per cent year-on-year (Y-o-Y) drop in consolidated net profit to Rs 326.64 crore during the third quarter of the current financial year (Q3FY25) on subdued steel prices across geographies. In the year-ago period, its net profit had stood at Rs 513.37 crore. 

Total revenue on a consolidated basis stood at Rs 53,648.30 crore in Q3FY25, down 3.01 per cent Y-o-Y. 

The numbers came in ahead of expectations, beating the Bloomberg consensus estimate on revenue by 3 per cent. Analysts had forecast a net loss for the quarter. 

Sequentially, total revenue was marginally down by 0.48 per cent and net profit fell by 60.81 per cent. 

 

T V Narendran, chief executive officer and managing director (CEO & MD), Tata Steel, said: “The global operating landscape continues to be shaped by geopolitics and continued economic slowdown in key regions. Steel exports from China, which has averaged 9 million tonnes per month in 2024, has dampened steel prices globally, including in India.” 

However, he said, growth in deliveries in India and focus on operational efficiency aided performance on Ebitda (earnings before interest, taxes, depreciation and amortization) improvement. 

Deliveries in India grew 8 per cent Y-o-Y to 5.29 million tonnes for the quarter and 6 per cent Y-o-Y to 15.3 million tonnes for 9MFY25. 9M stands for first nine months of the financial year. 

During Q3FY25, Tata Steel’s India turnover was at Rs 32,930 crore compared to Rs 35,014 crore a year ago. Reported profit after tax (PAT) was at Rs 3,865 crore as against Rs 4,475 crore in the year-ago period. 

In the UK, revenues were 523 million pound and Ebitda loss was at 67 million pound. 

 

Koushik Chatterjee, executive director and chief financial officer (ED & CFO) of Tata Steel, said both in the UK and the Netherlands, the performance had been adversely impacted by multi-year low market spreads, last seen in 2015-16. 

Despite this, Ebitda in the UK improved by 115 pound per tonne quarter-on-quarter (Q-o-Q), primarily driven by fixed cost takeout upon closure of the heavy end assets by September 2024, he said. 

The Netherlands operations reported revenues of 1,282 million pound and nil Ebitda for the quarter. 

Chatterjee also said that the company had spent around Rs 3,868 crore on capital expenditure and net debt had declined by around Rs 3,000 crore Q-o-Q to Rs 85,800 crore. 

Between April and December 2024, Tata Steel’s capital expenditure was at Rs 12,450 crore. 

Narendran said that growth plans in Kalinganagar were on course. The new blast furnace has produced 0.56 million tonnes during the quarter and is ramping up to rated capacity. 

The continuous annealing line (CAL), which is a part of the 2.2 million tonne per annum CRM (cold rolling mill) complex, was commissioned in December and has received facility approvals from some of the major automotive OEMs (original equipment manufacturers).