Tata Steel swings to net profit of ₹833 Crore in Q2FY25

7 Nov 2024 , 09:30 AM

Tata Steel Ltd recorded a net profit of ₹833 Crore for the quarter ending September 2024, compared to a loss of ₹6,196 Crore in the previous year’s quarter. 

Despite the positive bottom line, the company’s revenue fell 3% year on year to ₹53,905 Crore in Q2FY25, as the Indian steel industry battled sluggish pricing due to cheap imports, primarily from China, as well as indifferent demand due to a slowdown in infrastructure projects following the General Election.

The loss in the reporting quarter last year was owing to a huge provision – around Rs 6,899 Crore – that the company had taken for its United Kingdom operations as part of the continuing restructuring efforts there.

The company declared an EBITDA of ₹6,141 Crore from July to September 2024, with margins of ₹11.4%.

Total expenses in the second quarter fell to ₹52,332 Crore. The prior year’s corresponding quarter totalled ₹55,853 Crore.

Tata Steel India recorded a 5% YoY revenue reduction to ₹32,399 Crore in the September quarter, compared to ₹34,197 Crore the previous year.

The revenue from the Neelachal Ispat Nigam Ltd (NINL) business increased to ₹1,348 Crore in the September quarter of 2024. The previous year’s quarter saw a total of ₹1,283 Crore.

The Board also authorised Pramod Agrawal’s nomination as an Additional Director (Non-Executive, Independent) beginning November 6 and as an Independent Director for a tenure of five years.

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