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Tata Steel's consolidated net profit for the September quarter surged over fourfold to INR 3,183.09 crore, propelled by strong India operations. Total income grew over 8 percent year-on-year to INR 59,052.84 crore, with India contributing INR 38,592 crore. Production and deliveries in India saw significant growth, while the Netherlands and UK operations remained mixed. The company continued to reduce debt and prioritise decarbonisation initiatives, including a joint decarbonisation project in the Netherlands. Strategic acquisitions and asset sales further support Tata Steel's growth and operational efficiency.
Tata Steel reported a more than fourfold increase in consolidated net profit to INR 3,183.09 crore for the September quarter, largely driven by strong performance in its India operations. This compares with a net profit of INR 758.84 crore in the same quarter of the previous fiscal year, according to a stock exchange filing. Advertisement
The company's total income rose to INR 59,052.84 crore, up over 8 percent from INR 54,503.30 crore a year earlier. Revenue from India operations, which includes Neelachal Ispat and Nigam Ltd (NINL), accounted for around INR 38,592 crore of this total.
Tata Steel CEO and MD T.V. Narendran said that despite a challenging global environment marked by tariff overhangs, geopolitical tensions, and high steel exports, the company maintained resilience, with EBITDA margins improving for the second consecutive quarter. He added that Tata Steel continues to focus on transitioning its UK and Netherlands businesses to operations that are both economically and environmentally viable.
In September, the company signed a non-binding Joint Letter of Intent with the Government of the Netherlands and the Province of North-Holland for an integrated health measures and decarbonisation project. Tata Steel ED and CFO Koushik Chatterjee noted that the company is closely monitoring policy developments in the EU and the UK, prioritising and sequencing decarbonisation capital expenditure to ensure affordability for stakeholders.
In line with its debt optimisation strategy, Tata Steel reduced the UK unit's debt by 540 million pounds during the quarter. Consolidated gross debt decreased by around INR 3,300 crore quarter-on-quarter to INR 95,643 crore. Net debt currently stands at INR 87,040 crore.
Crude steel production in India grew 8 percent quarter-on-quarter to 5.65 million tonnes, with deliveries rising 17 percent to 5.55 million tonnes, aided by higher domestic sales. In the Netherlands, revenues were 1,551 million euros with EBITDA of 92 million euros. Liquid steel production reached 1.67 million tonnes and deliveries were 1.54 million tonnes. UK revenues stood at 505 million pounds, with an EBITDA loss of 66 million pounds and deliveries of 0.57 million tonnes, slightly lower due to subdued demand.
During the quarter, Tata Steel spent INR 3,250 crore on capital expenditure, bringing the half-year total to INR 7,079 crore. As part of expanding its downstream portfolio in India, the company signed a share purchase agreement with BlueScope Steel to acquire the remaining 50 percent stake in Tata BlueScope Steel Private Limited, subject to regulatory approvals. Additionally, Tata Steel had previously signed an Asset Transfer Agreement with Indian Metals & Ferro Alloys Ltd (IMFA) to sell its Ferro Alloy Plant in Jajpur, Odisha, for a base consideration of INR 610 crore.
Source PTI
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