Tata Steel Q4 Results: Net Profit Doubles to Rs.1,301 Crore Despite Global Challenges

Tata Steel has reported a consolidated net profit of ₹1,301 crore for the fourth quarter (Q4) of the financial year. This marks a 113% jump compared to the same period last year. Interestingly, this profit growth came even though the company earned less revenue overall, and its international businesses, especially in the UK, are still facing problems.

Revenue Drops, But India Operations Stay Strong

• Tata Steel’s total revenue for Q4 was ₹56,218 crore, which is 4% lower than last year. The main reason for this drop is lower steel prices, especially in the Indian market.
• Despite this, the company’s operating profit (EBITDA) stayed almost the same at ₹6,762 crore.
• Tata Steel also declared a dividend of ₹3.60 per share, giving something back to its shareholders.

India Business Performs Well Despite Price Pressure

• The company’s standalone India business earned a net profit of ₹3,141 crore in Q4. This is 19% lower than last year, mainly due to soft steel prices.
• However, sales volumes in India reached a new record of 21 million tonnes, growing 5% year-on-year.
• This increase was helped by the new blast furnace at Kalinganagar, Odisha, which is now fully operational.

FY25: A Year of Big Changes for Tata Steel

Tata Steel has called FY25 a year of strategic changes. The company has major plans, including:

• Commissioning India’s largest blast furnace
• Shutting down two old blast furnaces in the UK
• Improving steel production in the Netherlands

UK Operations Still in Loss, New Electric Furnace Planned

• Tata Steel’s UK business posted a loss of ₹873 crore in EBITDA, which is more than double the ₹388 crore loss from last year.
• To cut costs, Tata Steel has started importing steel to supply to UK customers during this transition phase.
• The company is planning to build a new electric arc furnace (EAF) at its Port Talbot plant in the UK, with construction expected to begin by July 2025.

Netherlands Business Shows Recovery

• In contrast, Tata Steel’s operations in the Netherlands improved. They reported a profit of ₹124 crore in EBITDA, compared to a loss of ₹296 crore last year.
• This recovery was possible as the plant resumed full production after previous maintenance issues.
• Tata Steel is also continuing talks with the Dutch government about its plans to reduce carbon emissions and become more environment-friendly.

Investment in Overseas Restructuring

• Tata Steel announced it will invest $2.5 billion (about ₹21,400 crore) into its Singapore-based unit, T Steel Holdings, in FY26.
• This money will help refinance debt and support restructuring efforts in its overseas businesses.

Stock Market Reaction

Even though Tata Steel posted a strong profit increase, its stock didn’t rise much:

• The share price opened at ₹152, dropped to ₹149.15, and later traded at ₹150.60, showing a slight decline of 0.68% by 11:38 AM IST.
• This shows that investors are still cautious, especially because of the challenges in the UK and Europe.

Conclusion

Tata Steel has shown a strong recovery in profits, mainly supported by its India business and improved operations in the Netherlands. However, international challenges, especially in the UK, are still a major concern. The coming year will be crucial as the company plans big changes, invests heavily in restructuring, and aims to become more efficient globally.