Tata Steel Ltd. Q4FY24 Result First Cut – Misses Estimates Amid Lower Steel Prices
- Consolidated Revenue from Operations stood at Rs. 58,687 crores in Q4FY24 (up 6.1% QoQ / down 6.8% YoY). This degrowth was due to lower realisations across geographies, partially offset by marginally higher volumes.
- EBITDA stood at Rs. 6,601 crores in Q4FY24 (up 5.4% QoQ / down 8.6% YoY), while the EBITDA margin declined to 11.25% in Q4FY24 compared to 11.32% in Q3FY24 and 11.47% in Q4FY23.
- EBITDA per ton stood at Rs. 8,735 in Q4FY24, compared to Rs. 8,035 in Q3FY24 and Rs. 9,289 in Q4FY23.
- The steel maker reported a net profit of Rs. 555 crores in Q4FY24 compared to Rs. 522 crores in Q3FY24 and Rs. 1,566 crores in Q4FY23, missing market estimates of around Rs. 950 crores.
- The company has spent Rs. 4,850 crores on capital expenditure during the quarter and Rs. 18,207 crores for FY24. The phased commissioning of the 5 MTPA expansion at Kalinganagar is progressing.
- Tata Steel board approved the proposal to infuse funds up to $2.11 billion into a wholly-owned subsidiary T Steel Holdings (TSHP) Singapore to repay debt and restructuring costs at Tata Steel UK.
- The company also incurred exceptional charges of Rs. 649 crores due to the closing of its Sukinda Chromite Block in Odisha and other expenses around its European operations.
- Production rose to 7.92 mn ton in Q4FY24 compared to 7.58 mn ton in Q3FY24 and 7.80 mn ton in Q4FY23.
- Deliveries stood at 7.98 mn ton in Q4FY24, compared to 7.15 mn ton in Q3FY24 and 7.78 mn ton in Q4FY23.
- The company spent Rs. 4,715 crores on capital expenditure during Q3FY24 and Rs. 13,357 crores for the 9MFY24. The phased commissioning of the 5 MTPA expansion at Kalinganagar has commenced.
- Following seven months of formal and informal national-level discussions with the UK trade unions, Tata Steel will commence the closure of heavy-end assets in June and proceed with its plan to invest in a state-of-the-art Electric Arc Furnace at Port Talbot.
- The Board of Directors recommended a dividend of Rs. 3.60 per share.