Tata Steel Shares in Focus After Release of Q2 FY25 Results

Tata Steel has released its Q2 FY25 results, reflecting solid growth in both revenue and EBITDA. For the first half of FY25, consolidated revenues stood at ₹1,08,676 crores. The company reported a 25% year-on-year (YoY) increase in EBITDA, reaching ₹13,046 crores, with an EBITDA margin of 12%.

In the July–September 2024 quarter, Tata Steel’s consolidated revenues were ₹53,905 crores, with an EBITDA of ₹6,224 crores, maintaining an EBITDA margin of approximately 12%. The company has continued to invest in its growth, spending ₹4,806 crores on capital expenditure during the quarter and ₹ 8,583 crores in the first half of the fiscal year.

Tata Steel’s net debt as of September 2024 stood at ₹88,817 crores. However, the company’s liquidity position remains strong, with a cash balance of ₹10,575 crores and total group liquidity of ₹26,028 crores.

Revenue from India operations for Q2 FY25 was ₹32,660 crores, with an EBITDA of ₹ 6,912 crores, resulting in an impressive EBITDA margin of 21%. For the first half of FY25, India’s revenues totalled ₹ 65,853 crores, with an EBITDA of ₹13,946 crores.

Crude steel production for the quarter was 5.28 million tons, marking a 5% YoY increase. Deliveries during the quarter stood at 5.11 million tons, driven by a 6% rise in domestic deliveries.

In a significant development, Tata Steel successfully commissioned India’s largest blast furnace at its Kalinganagar facility in September 2024. With the ramp-up of this facility, India’s crude steel capacity will increase to 26.6 million tons per annum (MTPA).

Tata Steel’s UK Operations

In the UK, Tata Steel made progress on its green steelmaking initiatives. The company closed the remaining blast furnace at Port Talbot, paving the way for the next generation of sustainable steel production. During the quarter, revenues from the UK operations stood at £600 million, while EBITDA recorded a loss of £147 million. Liquid steel production was 0.39 million tons, with deliveries reaching 0.63 million tons. For the first half of FY25, UK revenues amounted to £1,246 million, with an EBITDA loss of £238 million.

Tata Steel Netherlands Business

In the Netherlands, Tata Steel achieved revenues of £1,300 million in Q2 FY25, with an EBITDA of £22 million. Liquid steel production for the quarter was 1.66 million tons, with deliveries reaching 1.50 million tons—both showing positive growth compared to the previous year. For the half-year period, revenues from the Netherlands operations totalled £2,644 million, with an EBITDA of £65 million.

Mr T V Narendran, Chief Executive Officer & Managing Director: “Global operating environment remained complex, with key regions facing subdued growth. Macro-economic conditions in China continued to weigh on commodity prices including steel. In India, steel demand continued to improve but domestic prices were under pressure due to cheap imports. Despite this, Tata Steel has delivered broadly consistent performance, with India deliveries at 5.1 million tons for the quarter and 10.1 million tons for the half year. Domestic deliveries rose by 6% for the quarter and 5% for the half year on a YoY basis. Among business verticals, automotive deliveries were aided by growth in hi-end products. Tata Tiscon achieved ‘best ever 2Q’ deliveries and was up 20% YoY.”

On November 8, 2024, Tata Steel shares opened at ₹156.40 and touched the day high of ₹156.80 at 09:30 AM

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