Tata Steel on Thursday reported a more than two-fold jump in its consolidated net profit to Rs 2,900.32 crore for the quarter ended March 31, 2024, driven by strong operational performance and higher steel prices. The company had posted a net profit of Rs 1,416.23 crore in the same quarter a year ago.
Revenue and Operational Highlights
The company's revenue from operations rose 7.3% to Rs 58,687.35 crore during the quarter under review, compared to Rs 54,678.12 crore in the corresponding period of the previous fiscal. On a sequential basis, revenue grew 4.5% from Rs 56,179.23 crore in the December quarter.
Earnings before interest, tax, depreciation, and amortization (EBITDA) stood at Rs 9,890 crore, registering a growth of 32% year-on-year. The EBITDA margin improved to 16.9% from 13.6% in the same quarter last year.
Segment Performance
The Indian steel business reported a 33% increase in EBITDA to Rs 9,071 crore, driven by higher volumes and improved realizations. The European operations also turned profitable, with EBITDA of Rs 819 crore, compared to a loss of Rs 1,052 crore in the year-ago period.
Crude steel production in India rose 5% to 5.08 million tonnes, while deliveries grew 4% to 4.89 million tonnes. In Europe, crude steel production was flat at 2.24 million tonnes, but deliveries increased 3% to 2.34 million tonnes.
Full Year Performance
For the full fiscal year 2023-24, Tata Steel's net profit more than doubled to Rs 10,329.52 crore, compared to Rs 4,924.93 crore in the previous fiscal. Revenue from operations increased 3% to Rs 2,22,560.62 crore from Rs 2,15,598.28 crore.
The company's board has recommended a dividend of Rs 3.60 per share for the financial year 2023-24, subject to approval of shareholders.
Outlook and Management Commentary
Tata Steel CEO T V Narendran said the company delivered a strong performance in the fourth quarter, with all business segments contributing to the growth. He added that the domestic steel demand remains robust, driven by infrastructure and construction activities. The company expects the positive momentum to continue in the coming quarters, supported by government spending and economic growth.
However, the management remains cautious about the global macroeconomic environment and its impact on steel demand in Europe. The company will continue to focus on cost optimization and operational efficiency to mitigate any headwinds.
Shares of Tata Steel closed 1.2% higher at Rs 165.45 on the BSE ahead of the results announcement.
