Tata Steel Q4 Results: India’s second-largest steelmaker by market cap saw a 6.8% decline in revenue to ₹58,687.3 crore in March quarter.
Tata Steel Q4 Results: Tata Steel revealed Q4FY24 results on Wednesday, May 29, showing a 64.8% decrease in consolidated net profit to ₹554.6 crore from ₹1,566 crore last year. Operations revenue fell 6.8% to ₹58,687.3 crore compared to ₹62,961 crore in the previous year’s quarter.
“In India, a structurally attractive market, we achieved better margins and expanded volumes and product range. Domestic deliveries reached a record 19 million tons, up nine percent YoY, with broad-based market segment improvements,” stated T V Narendran, CEO and MD of Tata Steel.
“Narendran added, ‘Increased automotive volumes came from higher hot-rolled and cold-rolled steel deliveries to auto OEMs, and Tata Tiscon’s retail brand surpassed two million tons annually. India deliveries now constitute 68% of total, set to rise further with Kalinganagar’s five MTPA expansion.'”
Tata Steel Q4 results Scorecard Highlights:
1. Financials: Revenue, EBITDA
The company witnessed reduced net profit due to lower steel prices and restructuring costs in certain loss-making ventures. Domestic steel prices faced pressure amidst increased imports from China. Revenue declined with a nearly four percent decrease in India business, constituting at least 62 percent of total revenue.
Tata Steel’s EBITDA fell 8.6% to ₹6,600.7 crore in March quarter from ₹7,219 crore last year. Margin decreased 20 bps to 11.3% from 11.5% in the previous year.
2. Dividend
Tata Steel’s board proposed a dividend of ₹3.60 per equity share for FY24, subject to shareholder approval at the AGM on Monday, July 15, 2024. If approved, the dividend, net of applicable tax, will be disbursed from Friday, July 19, 2024. The record date for dividend entitlement is set for Friday, June 21, 2024.
3. Investment in Singapore unit
Tata Steel’s board endorsed a plan to inject up to $2.11 billion (~₹17,407.50 crore) into T Steel Holdings Pte. Ltd (TSHP), its wholly-owned foreign subsidiary. This funding, allocated over 2024-25, aims to retire offshore entity debt and aid restructuring costs at Tata Steel UK Limited. Additionally, the board sanctioned debt write-offs and conversion of debt instruments worth $565 million (~₹4,661.25 crore) into equity shares in FY25, maintaining Tata Steel’s 100% equity in TSHP.
4.Issuance of NCDs
Tata Steel’s board approved issuing up to ₹3,000 crore in NCDs through private placement, with a committee authorized to decide on details.
5.Other key metrics
Tata Steel’s FY24 consolidated revenues totaled ₹2,29,171 crore, with EBITDA at ₹23,402 crore, mainly boosted by enhanced India operations. Capital expenditure was ₹4,850 crore for the March quarter and ₹18,207 crore for the entire year.
Net debt is ₹77,550 crore, with liquidity at ₹31,767 crore, including ₹9,532 crore in cash & equivalents.
India segment’s full-year revenues reached ₹1,42,902 crore, slightly higher YoY. It achieved record crude steel production of ~20.8 million tons and deliveries of ~19.9 million tons, up nine percent YoY.
The UK segment’s annual revenues totaled £2,706 million with an EBITDA loss of £364 million. Liquid steel production was 2.99 million tons, with deliveries at 2.80 million tons. Quarterly revenues were £647 million with an EBITDA loss of £34 million.
Netherlands segment’s annual revenues were £5,276 million with an EBITDA loss of £368 mn due to BF6’s reline completed in February. Liquid steel production was 4.81 mn tons, deliveries 5.33 mn tons. Quarterly revenues were £1,324 million with an EBITDA loss of £27 mn.
After seven months of national-level discussions with UK trade unions, Tata Steel will begin closing heavy-end assets in June and continue investing in an electric arc furnace at Port Talbot.
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