- 13 May 2025
- ICICIdirect Research
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TATA STEEL TOTAL OPERATING INCOME FOR THE QUARTER CAME IN AT RS 56218 CRORE
TATASTEEL - 154 Change: 2.04 (1.34 %)News: On the consolidated basis, total operating income for the quarter came in at ₹56,218 crore (down 4% YoY, up 4.8% QoQ) with a steel sales volume of ~8.3 million tonne (up 4% YoY, 8% QoQ). Reported EBITDA for the quarter came in at ₹6,559 crore with corresponding EBITDA margins at 11.7% (up 66 bps QoQ). Standalone operations reported adjusted EBITDA/tonne of ₹12,463 vs. ₹14,179 in Q3FY25. UK revenue for the quarter was at £551 million with EBITDA loss of £80 million, whereas Netherland revenue stood at €1,624 million with EBITDA positive of €14 million for the quarter. Consolidated PAT for the quarter was at ₹1,201 crore, up by 116% YoY supported by lower taxes, which has declined by 20% YoY. Net Debt stands at ₹82,579 crores with group liquidity at ₹38,791 crores, which also includes cash & cash equivalents of ₹12,222 crores. Additionally, it will be infusing ₹21,411 crores in its wholly owned subsidiary T Steel Holdings Ltd for repayment of debt and restructuring costs in its subsidiaries.
View: Sequential volume growth has supported an improvement in the company’s topline performance. However, EBITDA per ton for the quarter was impacted by an increase in other expenses. Furthermore, the UK operations reported higher EBITDA losses, driven by lower realizations and elevated raw material and other costs during the quarter. Looking ahead, the ramp-up of the 5 MTPA Kalinganagar plant and the commissioning of the 2 MTPA CRM complex are expected to act as growth catalysts in the upcoming quarters. Additionally, a rebound in domestic steel prices and a favourable trend in coking coal costs should support an improvement in the company’s earnings prospects in the coming quarters.
Impact: Neutral