Tata Steel Q4 Results: Consolidated Profit After Tax Falls 64.5%

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Synopsis:

Tata Steel's Q4 results were announced on 29 May 2024 with somewhat of a slump in its Net Profit, down to ₹555 Cr, a large drop on a YoY basis but a marginal increase QoQ. Still, the results were dotted by some bright spots as the major steelmaker reported a 6% increase in Revenue on a QoQ basis and EBITDA at ₹6,631 Cr. The Company recorded rises in volumes with figures up spanning all its markets across the world.

5 Key Financial Highlights

On the face of it, the Q4 FY2023-24 results of Tata Steel may appear muted to those who estimated that the legendary steel company would rise in the concluding quarter of FY24. However, some of the Company’s metrics show positive outcomes for a prospective FY25. Here are 5 key financial highlights from Tata Steel’s Q4: 

  • The Company’s Revenue was at ₹58,687 Cr, a rise of 6% QoQ, but a decrease on a YoY basis
  • EBITDA stood at  ₹6,631 Cr with an EBITDA margin of ~11%
  • Pre-exceptional PBT was at ₹2,403 Cr, down on a YoY basis
  • Reported PAT was at ₹555 Cr, down by a large degree on a YoY basis
  • The Company has spent ₹4,850 Cr on Capital Expenditure during Q4 with its phased expansion of projects progressing as expected

Explore: Tata Steel

An Overall Adequate Result

Tata Steel's Q4 results say a lot about a legendary steel company that has weathered the storms of downturns and other factors like demand and supply, not to mention inflationary variables. The overall business of the Company ended on a positive note in FY24 with Q4 results seemingly subdued, but actually quite bright if you read between the lines. Here are some of the steel giant’s operational highlights and figures reflecting the business growth of Tata Steel: 

  • In 4QFY24, the Company’s India deliveries were up 5% YoY to 5.42 million tons. Revenues were at ₹36,864 Cr and EBITDA was at ₹8,261 Cr with an EBITDA margin of around 22%
  • For the quarter, the Company’s UK Revenues were £647 million and EBITDA loss stood at £34 million
  • For the quarter, the Netherlands Revenues were £1,324 million and EBITDA loss was at £27 million
  • Consolidated Cash Flow from Operations was around ₹7,400 Cr for Q4 and ₹20,300 Cr for the full year
  • The Company’s liquidity remains robust
  • The Board of Directors has recommended a dividend of ₹3.60 per fully paid-up equity share of face value of ₹1/- each

Additional Read: Tata Steel- A Comprehensive Guide

Major Financial Metrics - Consolidated Q4 (FY2023-24) Financial Results of Tata Steel (in ₹ Crore)

Metrics

Q4 FY24

Q3 FY24

Q4 FY23

Production (mn tons)

7.92

7.58

7.80

Deliveries (mn tons)

7.98

7.15

7.78

Total Revenue from Operations

58,687

55,312

62,962

EBITDA

6,631

6,334

7,225

Pre-exceptional PBT 


2,403

2,262

3,309

Reported PAT 


555

522

1,566

Tata Steel’s Tomorrow

After Tata Steel’s Q4, you may wonder what the results bring for the future of the Company. With the Company’s liquidity remaining at a robust ₹31,767 Cr, Tata Steel has foretold several areas of progress in operations and business in FY25. FY24 and Q4 have been times of transition combined with progress for Tata Steel in the face of challenges in the overall business environment. The Company has delivered improved margins and continued to expand its footprint concerning volumes and its product portfolio. Domestic deliveries were the best ever at around 19 million tons and up 9% YoY with broad-based improvement across selected market segments. Automotive volumes were aided by higher deliveries of hot-rolled and cold-rolled steel to auto OEMs while the retail brand Tata Tiscon went over 2 million tons annually. The expansion of plants like the 5 MTPA capacity extension at Kalinganagar is also on track. The Company continues on its path to undertake multiple initiatives across geographies to progress its widespread sustainability journey. 

Additional Read: Quarterly Results

Conclusion

Tata Steel is a household name in the steel industry in India and with its expansion abroad, it is touted to give some serious competition to other Indian steel makers. Continuing its legacy of disciplined operations and strong underlying financials, the Company is built on a foundation of steel, so to speak, and is robust in its business even in the atmosphere of challenge and economic disturbance. The Company may have delivered a muted quarter, but its FY24 has been promising and it will continue to deliver on its commitments, both to clients and to the business in FY25.  

Additional Read: Hindalco Q4

About Tata Steel

Steel touches the lives of everyone, and though you may not realise, Tata Steel’s footprint is everywhere, from the home you live in to the bridges and roads you traverse. 

Tata Steel, with an annual crude steel capacity of 35 million tonnes per annum (MnTPA), is one of the world’s top geographically diversified steel producers. The Company is among the few steel operations that are fully integrated – from mining activity to the manufacturing and marketing of finished steel products. The Company’s goal is to tap growing world markets and Tata Steel, together with its subsidiaries, associates, and joint ventures, is spread over five continents with an employee base of over 77,000. In India, the Company’s downstream business activities are structured into strategic operations segments like Ferro-Alloys and Minerals, Wires, Tubes, Agrico, Bearings, Industrial By-products Management, and Tata Growth Shop.

Established in India as Asia’s first integrated private steel company in 1907, the Company created India’s first industrial city at Jamshedpur. The Company has also set up a second greenfield steel plant of 3 MnTPA in the eastern state of Odisha in 2016; the expansion to 8 MnTPA is currently underway. The company possesses and operates captive mines that help it maintain cost- competitiveness and production efficiencies through an uninterrupted supply of raw materials. This is how Tata Steel ensures that it remains the lowest-cost producer of steel in Asia. The Indian product portfolio of the Company is divided into four segments – Automotive and Special Products; Industrial Products, Projects and Exports; Branded Products and Retail; and Services and Solutions. The Company supplies hot-rolled, cold-rolled, galvanised, branded solution offerings, and more.

Additional Read: NTPC Q4 Results:

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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