Tata Steel Ltd. Results

H1FY25 & Q2FY25 Result Announced for Tata Steel Ltd.

Iron & Steel Products company Tata Steel announced H1FY25 & Q2FY25 results Consolidated Revenues for H1FY25 were Rs 1,08,676 crore. EBITDA improved by 25% YoY to Rs 13,046 crore with an EBITDA margin of 12%. Consolidated Revenues for the July – Sep 2024 quarter were Rs 53,905 crore and EBITDA was Rs 6,224 crore with an EBITDA margin of around 12%. The company has spent Rs 4,806 crore on capital expenditure during the quarter and Rs 8,583 crore for the half year. Net debt stands at Rs 88,817 crore. Our group liquidity remains strong at Rs 26,028 crore, which includes cash & cash equivalents of Rs 10,575 crore. India revenues were Rs 32,660 crore for the quarter and EBITDA was Rs 6,912 crore, 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 6% rise in domestic deliveries. On half year basis, Revenues were Rs 65,853 crore and EBITDA was Rs 13,946 crore. In September 2024, we successfully commissioned India’s largest blast furnace at Kalinganagar. With ramp up of Kalinganagar facilities, India crude steel capacity will increase to 26.6 MTPA. In UK, the remaining blast furnace at Port Talbot was closed to pave the way for next generation of green steelmaking. During the quarter, revenues were EUR 600 million and EBITDA loss stood at EUR 147 million. Liquid steel production was 0.39 million tons while deliveries were 0.63 million tons. On half year basis, Revenues were EUR 1,246 million and EBITDA loss was EUR 238 million. Netherlands revenues were EUR 1,300 million and EBITDA for the quarter was EUR 22 million. Liquid steel production at 1.66 million tons and deliveries at 1.50 million tons, were up on YoY basis. On half year basis, Revenues were EUR 2,644 million and EBITDA was EUR 65 million. T V Narendran, Chief Executive Officer & Managing Director, said: “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 broadly consistent performance, with India deliveries at 5.1 million tons for the quarter and 10.1 million tons for the half year. Domestic deliveries rose by 6% for the quarter and 5% for the half year on YoY basis. Among business verticals, automotive deliveries were aided by growth in hi-end products. Tata Tiscon achieved ‘best ever 2Q’ deliveries and was up 20% YoY. In September 2024, we successfully commissioned the 5 MTPA blast furnace at Kalinganagar. This coupled with the 2.2 MTPA CRM complex will further improve our product mix. 2Q also marked the closure of our blast furnaces in UK. We have signed the grant funding agreement with the UK government and are progressing on the proposed transition to green steel. We remain fully committed to supporting affected employees and have offered the best ever package of support in Tata Steel UK. In Netherlands, our deliveries stood at 1.5 million tons and subdued steel prices weighed on performance. We are undertaking pilot projects to avoid or convert captured carbon emissions. I am happy to share that we have achieved 20% diversity for the first time in India and have also been recognised by worldsteel for process safety management.” Koushik Chatterjee, Executive Director and Chief Financial Officer, said: “Tata Steel Consolidated revenues for the half year were Rs 1,08,676 crore and EBITDA was Rs 13,046 crore. Consolidated EBITDA margin witnessed an improvement of around 300 bps to 12%, aided by higher volumes in India and improved profitability at Netherlands. This was despite challenging operating environment across geographies. Consolidated revenues for the quarter stood at Rs 53,905 crore and EBITDA was Rs 6,224 crore, which translates to a margin of 12%. India revenues were around Rs 32,660 crore and margin of 21% works out to an EBITDA of Rs 6,912 crore. Our second blast furnace at Kalinganagar is ramping up well and associated facilities such as Continuous Annealing Line and Air Separation Unit will be commissioned in the later part of the year. Separately, we have placed equipment orders for our 0.85 MTPA Electric Arc Furnace plant in Ludhiana. Our performance in UK and Netherlands was adversely impacted by the compression in steel spreads. Further, 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. We spent around Rs 8,583 crore on capital expenditure during the half year, mostly in India. Our net debt stands at Rs 88,817 crore and the group liquidity position remains strong at Rs 26,028 crore, with cash and cash equivalents of Rs 10,575 crore. We are focused on cost optimisation, operational improvements and working capital management to maximise cashflows. With respect to the UK transition, we have signed a contract with Tenova to deliver a state-of the-art Electric Arc Furnace. We have completed public consultation on the planning application and anticipate commencing large scale site work around July 2025. During our transition to green steel, we will operate our downstream operations by sourcing substrate. This will help us sustain our significant market presence across steel end use segments in UK. In Netherlands, we are engaged with the government on support for the decarbonisation of our operations.”

Q1FY25 Quarterly Result Announced for Tata Steel Ltd.

Iron & Steel Products company Tata Steel announced Q1FY25 results: Financial Highlights: Consolidated Revenues for the Apr – June 2024 quarter were Rs 54,771 crore and EBITDA was Rs 6,822 crore with an EBITDA margin of around 12.5%. The company has spent Rs 3,777 crore on capital expenditure during the quarter. The phased commissioning of the 5 MTPA expansion at Kalinganagar is progressing well towards blast furnace start-up in September 2024. Net debt stands at Rs 82,162 crore. Our group liquidity remains strong at Rs 36,460 crore, which includes cash & cash equivalents of Rs 10,799 crore. India revenues were Rs 33,194 crore for the quarter and EBITDA was Rs 7,029 crore, which translates into an EBITDA margin of 21% Crude steel production was around 5.27 million tons and was up 5% on YoY basis. Deliveries stood at 4.94 million tons and were up on YoY basis, driven by 4% rise in domestic deliveries. At segment level, Automotive witnessed ‘best ever Q1’ sales and Tata Tiscon deliveries were up 15% YoY leading to best ever quarterly sales. UK revenues were GBP 646 million and EBITDA loss stood at GBP 91 million. Liquid steel production as well as deliveries were 0.68 million tons. Netherlands revenues were GBP 1,344 million and EBITDA for the quarter was GBP 43 million. On per ton basis, EBITDA improved by GBP 48 per ton on QoQ basis. Liquid steel production was 1.69 million tons and deliveries were at 1.47 million tons, up QoQ and YoY basis. Tata Steel commenced the closure of heavy end assets at Port Talbot with shutdown of BF #5 in early July 2024. The closure of BF #4 is scheduled for September 2024. T V Narendran, Chief Executive Officer & Managing Director: “During the quarter, subdued steel demand across most regions weighed on global steel prices. In India, steel demand was broadly stable despite some impact due to elections and heat waves. In India, our crude steel production was up 5% YoY to around 5.3 million tons. Deliveries at around 4.9 million tons were the ‘best ever 1Q’ sales aided by 4% YoY growth in domestic deliveries. Among business verticals, automotive witnessed 9% YoY growth aided by higher than market growth in select sub segments. Tata Tiscon continued to grow aided by enhanced reach and scale-up of consumer connect programs. We are focusing on innovative solutions to shape market practices and enhance customer experience to retain leadership in chosen segments. We continue to expand our footprint via new dealer appointments, e-commerce portals and influencers. The 5 MTPA expansion project at Kalinganagar is on track for the blast furnace to start in September 2024. The heating process for blast furnace stoves and coke oven batteries has commenced as planned. Additionally, the commissioning activities for Continuous Annealing Line of the 2.2 MTPA CRM complex at Kalinganagar are progressing well for start up in August 2024. In UK, we have safely ceased operations at one of the blast furnaces (BF #5) at Port Talbot and are on track to close the remaining blast furnace by September 2024. We are committed to supporting affected employees alongside providing multiple training and community support schemes. In Netherlands, our production has risen on QoQ as well as YoY basis, upon return to normal operating levels. Sustainable operations are integral to our strategic goals and Tata Steel has launched the first carbon bank in India. Further, Tata Steel remains dedicated to enhancing diversity and am happy to share that we recently deployed the first-ever crew of female firefighters in the Indian steel industry.” Koushik Chatterjee, Executive Director and Chief Financial Officer: “Tata Steel Consolidated revenues for the quarter were Rs 54,771 crore and EBITDA was Rs 6,822 crore. Consolidated EBITDA margin was around 12.5%, with an improvement of more than 100 bps on QoQ basis. India revenues were around Rs 33,194 crore and EBITDA was Rs 7,029 crore, which translates to an EBITDA per ton of Rs 14,227 and an EBITDA margin of 21%. Netherlands revenues were broadly stable despite subdued demand dynamics but cost profile continued to improve with stabilisation of operations leading to EBITDA improving from - ve GBP 27 million in 4Q to +ve GBP 43 million in 1Q. This was partly offset by EBITDA loss at UK operations which is in the midst of restructuring and transition. Given the planned closure of blast furnaces in UK, there has been steel stock build-up for the downstream operations which impacted working capital. We continue to focus on growth in India and have spent Rs 3,777 crore on capital expenditure during the quarter. Net debt stands at Rs 82,162 crore. Group liquidity position remains strong at Rs 36,460 crore, which includes Rs 10,799 crore of cash and cash equivalents. We also remain focused on cost optimisation, operational improvements and working capital management to maximise cashflows. With respect to the UK transition, we are proceeding as per previously announced timelines for the closure of the heavy end, a step which is critical to address the deep cash burn associated with the upstream end of life assets. We are also on track with regard to supply chain preparedness for imports of semi-finished steel which will be utilized by the downstream assets to continue to service customers, after the closure of the blast furnaces. We are fully committed to supporting affected employees, have offered the best ever package of support in Tata Steel UK, and continue to engage deeply with the Unions in this respect. The Voluntary Redundancy Aspiration process was launched on 10th July and will close on 07th August. We are working closely with the recently elected UK government on finalisation of grant funding process for the new Electric Arc Furnace project. We have also started active engagement with the government in Netherlands on support for the decarbonisation project.”

Q4FY24 Quarterly & FY24 Annual Result Announced for Tata Steel Ltd.

Iron & Steel Products company Tata Steel announced Q4FY24 & FY24 results: Consolidated Revenues for Q4FY24 stood at Rs 58,687 crore, up 6% QoQ on improved volumes across geographies. EBITDA was at Rs 6,631 crore with an EBITDA margin of ~11%. Consolidated Revenues for FY2024 were at Rs 2,29,171 crore. EBITDA stood at Rs 23,402 crore and has been primarily driven by improved performance at India operations. The company has spent Rs 4,850 crore on capital expenditure during the quarter and Rs 18,207 crore for the full year. The phased commissioning of the 5 MTPA expansion at Kalinganagar is progressing. Net debt stands at Rs 77,550 crore. Our group liquidity remains strong at Rs 31,767 crore, which includes cash & cash equivalents of Rs 9,532 crore. India revenues were Rs 1,42,902 crore for the full year and were marginally higher on YoY basis Achieved highest ever crude steel production of ~20.8 million tons as well as deliveries of ~19.9 mn tons. Domestic deliveries were up 9% YoY leveraging India steel demand growth and agile business model. EBITDA was higher by 10% YoY to Rs. 31,057 crore, which translates into an EBITDA margin of 22%. In Q4FY24, India deliveries were up 5% YoY to 5.42 million tons. Revenues were at Rs 36,864 crore and EBITDA was at Rs 8,261 crore with an EBITDA margin of around 22%. UK annual revenues were GBP 2,706 million and EBITDA loss stood at GBP 364 million. Liquid steel production was 2.99 million tons while deliveries stood at 2.80 million tons. For the quarter, revenues were GBP 647 million and EBITDA loss stood at GBP 34 million. Netherlands annual revenues were GBP 5,276 million and EBITDA loss stood at GBP 368 mn, largely due to the reline of BF6 which was completed in early February. Liquid steel production was 4.81 mn tons and deliveries were 5.33 mn tons. For the quarter, revenues were GBP 1,324 mn and EBITDA loss was at GBP 27 mn. Following seven months of formal and informal national level discussions with the UK trade unions, Tata Steel will commence closure of heavy end assets in June and proceed with its plan to invest in a state-ofthe-art Electric Arc Furnace at Port Talbot. The Board of Directors recommends a dividend of Rs. 3.60 per fully paid-up equity share of face value of Rs 1/- each. T V Narendran, Chief Executive Officer & Managing Director: “FY2024 has been a year of progress for Tata Steel with transition towards stated goals in India and abroad despite the challenging operating environment. In India, which is a structurally attractive market, we have delivered improved margins and continued to expand our footprint in terms of volumes as well as product portfolio. Our domestic deliveries were best ever at around 19 million tons and were up 9% YoY with broad based improvement across chosen market segments. Automotive volumes were aided by higher deliveries of hot-rolled and cold-rolled steel to auto OEMs while our well-established retail brand Tata Tiscon crossed 2 million tons on an annual basis. We have consistently filed 100+ patents per annum, on average, in the last 5 years. Overall, India deliveries now make up 68% of total deliveries and will continue to grow with incremental volumes from 5 MTPA capacity expansion at Kalinganagar. With respect to the UK operations, we have decided to proceed with the proposed restructuring of heavy end UK assets and transition to greener steelmaking after due consideration of all the options over the last 7 months in consultation with union representatives. We are committed to creating a low-CO2 steel business that preserves the majority of the jobs in UK while also creating economic opportunities. In Netherlands, our production was lower due to the relining of BF6. The relining was completed in early February and we have stabilised the operations. We continue to undertake multiple initiatives across geographies to progress on our sustainability journey. I am happy to share that we have achieved zero effluent discharge at our Kalinganagar site in India and have been recognised by worldsteel as Sustainability champion for the seventh time in a row.” Koushik Chatterjee, Executive Director and Chief Financial Officer: “Tata Steel Consolidated revenues for FY2024 were around $27.7 billion aided by higher volumes in India. Consolidated EBITDA was Rs 23,402 crore, which translates to an EBITDA margin of around 10%. India EBITDA increased by 10% YoY to Rs 31,057 crore, with margin improvement of around 200 bps to 22%, translating to Profit after tax (excluding exceptional items) of Rs 17,514 crore. For the quarter, Consolidated revenues were Rs 58,687 crore and EBITDA was marginally higher at Rs 6,631 crore on QoQ basis. Consolidated cash flow from operations was around Rs 7,400 crore for the quarter and Rs 20,300 crore for the full year. Our capital expenditure was Rs 4,850 crore for the quarter and Rs 18,207 crore for the full year, up 29% YoY. Our Group liquidity remains strong at Rs 31,767 crore. The Board has recommended a dividend of Rs 3.60 per share. Moving to strategic initiatives, we have been carefully considering the alternative proposal from the representative body of the UK trade unions and have concluded that maintaining one blast furnace till the transition would have incurred at least GBP 1.6 billion of additional costs, created significant operational and safety risk, and delayed the EAF by two years. We have therefore discussed with the Unions and concluded national level consultation on the asset plan. We will proceed with our proposal to shut down heavy end assets this year, and setup the EAF by 2027. This is a difficult period of change for our people and we will do our upmost to support the affected employees. With respect to the Electric Arc Furnace, we will place equipment orders by Sep 2024 and have signed the agreement with the UK National Grid securing the high voltage connection, which will be available on schedule. We have as part of discussions with the unions, offered the best ever package of support for affected employees in Tata Steel UK. We have also agreed the final and detailed terms of the proposed grant package with the UK government to support the GBP 1.25 billion investment.”

Q3FY24 Quarterly & 9MFY24 Result Announced for Tata Steel Ltd.

Tata Steel announced Q3FY24 results: Consolidated Revenue: For 9MFY24, the consolidated revenues stood at Rs 1,70,483 crore. EBITDA: The Consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the same period was reported at Rs 16,771 crore, with a margin of approximately 10%. Quarterly Revenue: The revenues for Q3FY24 were at Rs 55,312 crore. EBITDA for the Quarter: EBITDA saw an increase of 47% QOQ (quarter over quarter) to Rs 6,334 crore, and the EBITDA margin was at 11%. Capital Expenditure: The company spent Rs 4,715 crore on capital expenditure during the quarter and a total of Rs 13,357 crore for the 9MFY24. Net Debt: Stood at Rs 77,405 crore. Liquidity: The group's liquidity remains strong at Rs 23,349 crore, including cash and cash equivalents of Rs 10,825 crore. India Revenues and Production: India’s revenues were Rs 35,011 crore and stable on a QoQ basis. Crude steel production was around 5.35 million tons, up 7% both QoQ and YoY (year over year). India Deliveries and EBITDA: Deliveries at 4.88 million tons were marginally higher QoQ, driven by a rise in domestic deliveries. EBITDA for India was Rs 8,302 crore, translating into an EBITDA margin of 24%. Kalinganagar Expansion: The commencement of the 5 MTPA (million tons per annum) expansion at Kalinganagar has begun. UK Performance: Revenue was £603 million with an EBITDA loss of £159 million. Liquid steel production was 0.72 million tons, and deliveries stood at 0.64 million tons. Netherlands Performance: Revenue was £1,239 million with an EBITDA loss of £117 million. Liquid steel production was stable at 1.19 million tons, and deliveries were up 5% QoQ. T V Narendran, Chief Executive Officer & Managing Director: “The global operating environment has been complex, with the economic slowdown in China and geopolitics weighing on commodity prices in general. During this quarter, China has exported between 7 to 8 million tons of steel every month, which is the highest since 2015 and this has adversely impacted global steel prices as well as profitability. Despite this context, Tata Steel India has delivered better margins aided by higher deliveries as well as realizations on a QoQ basis. Our domestic deliveries for the quarter stood at 4.78 million tons and were up 3% QoQ and 10% YoY. Among the key segments, Automotive and well-established brands such as Tata Tiscon, Tata Steelium, and Tata Astrum had the best 3Q sales. The consistent growth in India deliveries has been aided by crude steel production being close to 5 million tons across the quarters in this financial year. The phased commissioning of our 5 MTPA capacity expansion at Kalinganagar is underway. Moving to Europe, our deliveries in the Netherlands were up while the UK moved lower QoQ due to subdued demand as well as operational issues given the aging assets. We will commence statutory consultations with the unions in the UK as a step towards our transition to an EAF-based sustainable business. We continue to undertake multiple initiatives across geographies to progress on our sustainability journey. I am happy to share that the Tata Steel Meramandali and Tata Steel Kalinganagar sites have now received ResponsibleSteelTM certification and we now have three certified sites in India including Jamshedpur. Koushik Chatterjee, Executive Director, and Chief Financial Officer: “Tata Steel Consolidated revenues for the quarter stood at Rs 55,312 crore and EBITDA was Rs 6,334 crore, an increase in margins by around 300 bps QoQ. India's EBITDA was Rs 8,302 crore, a QoQ margin increase of 400 bps while subdued demand dynamics weighed on margins in the UK and Netherlands. The UK business continues to face production shortfalls arising from the end-of-life condition of several of its heavy-end assets. In the Netherlands, we expect BF#6 to restart by the end of January. Cash flow from operations in India rose sharply to Rs 9,016 crore while consolidated cash flow from operations was lower at Rs 7,879 crore. Our Net debt stands at Rs 77,405 crore and the group liquidity position remains strong at Rs 23,349 crore. Moving to strategic initiatives, we have largely fulfilled our plan to simplify our India footprint, having now completed the merger of Tinplate Company of India and Tata Metaliks into Tata Steel. Our announcement on 19th January about Tata Steel UK follows detailed discussions with and careful consideration of the alternative proposal from the representative body of the UK trade unions and their advisor. The company’s analysis shows that partial continuity of blast furnaces until completion of transition to the EAF is not affordable and engineering studies have found that building the EAF in an already operating steel melt shop is not feasible. Tata Steel is acutely aware of the impact of its proposal to wind down the heavy end in Port Talbot on individuals and the local community associated with our steel works, we will meaningfully consult with our employees and work to provide them with a fair, dignified, and considerate outcome. Tata Steel proposes to commit more than £130 million to a comprehensive support package for affected employees. This is in addition to the £100 million funding for the Transition Board set up by the company along with the UK and Welsh governments. Tata Steel has begun engineering design work on the EAF and discussions with National Grid for supporting infrastructure with a target to commission the EAF by 2027.”