Tata Steel Q3 Reports 2024 Significant Turnaround with ₹522 Crore Consolidated Net Profit.

Tata Steel Q3 Reports : Tata Steel, in its financial report on January 24, revealed a consolidated net profit of ₹522 crore for the third quarter of FY24. This marks a remarkable recovery from the net loss of ₹2,501.95 crore in the same quarter of the previous year, attributed to robust domestic demand offsetting challenges in the European market.

The company faced a net loss of ₹6,511.16 crore in the second quarter, mainly due to impairment charges. Despite the steel industry benefiting from increased steel prices driven by strong demand linked to substantial infrastructure investments, rising coking coal costs posed a counterbalance, impacting overall profitability.

In a year-on-year comparison, there was a 3% decrease in revenue from operations, totaling ₹55,312 crore, a slight dip from ₹57,084 crore in the corresponding quarter of the previous year.

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Tata Steel’s board has set February 6 as the record date for the allocation of shares to Tata Metaliks shareholders. As per the approved merger plan, Tata Metaliks shareholders will receive 79 shares of Tata Steel for every 10 shares held in Tata Metaliks.

The company exceeded market expectations by reporting a consolidated net profit of ₹522 crore in the third quarter for FY24, compared to the estimated ₹702.70 crore. The projection foresaw a 1.3% increase on a quarter-on-quarter basis, driven by heightened sales realization in Indian operations and increased sales volume within the country.

In the October-December quarter, Tata Steel’s consolidated revenue from operations witnessed a 3% decline to ₹55,311.9 crore, compared to ₹57,083.56 crore in the corresponding period of the previous year. The EBITDA margin for the quarter stood at 11.3%, a notable increase from 7.1% in the same period of the preceding fiscal year, reflecting the company’s strong financial performance.

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Tata Steel allocated ₹4,715 crore for capital expenditure in the quarter and ₹13,357 crore for the first nine months of FY24. The phased commissioning of the 5 MTPA expansion at Kalinganagar has commenced, indicating positive progress in the company’s growth initiatives.

The company reported its best-ever Q3 sales, with domestic deliveries reaching 4.88 MT. The Industrial Products & Projects category saw a 5% quarter-over-quarter and 6% year-over-year increase in shipments. Notably, the Automotive & Special Products segment experienced an 8% quarter-over-quarter and an impressive 22% year-over-year growth.

In contrast, revenue from European operations experienced a 12.5% decline in the quarter, amounting to ₹18,141.97 crore. Tata Steel Netherlands reported a liquid steel production of 1.17 MT, with deliveries reaching 1.29 MT, reflecting a 5% increase quarter-on-quarter. Conversely, Tata Steel‘s liquid steel production in the UK for the quarter slightly declined on a quarter-on-quarter basis, attributed to operational challenges, with deliveries totaling 0.63 million metric tons, registering decreases both sequentially and year-on-year due to subdued demand dynamics.