Tata Steel reports EBITDA of Rs 4,315cr in Q2, focusing on decarbonisation and expansion

Tata Steel, one of the leaders in the global steel industry, has reported a consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of Rs 4,315 crores for the quarter ending September 30, 2023. This forms part of the half-yearly financial results where the company recorded revenues of Rs 1,15,172 crores and an EBITDA of Rs 10,437 crores. The EBITDA margin for the quarter stood at 8%, marking a significant development in the company’s financial journey.

Capital Expenditure and Debt Position

During the quarter, Tata Steel has made a capital expenditure of Rs 4,553 crores and Rs 8,642 crores for the half year. Significant projects like the 5 MTPA expansion at Kalinganagar and the 0.75 MTPA EAF project in Punjab are currently underway. The company’s net debt is reported at Rs. 77,032 crores, with strong group liquidity of Rs 27,637 crores. Enhancements in the company’s credit rating reflect its robust financial health and strategic direction.

Tata Steel’s Operations and Decarbonisation Efforts

In the Indian market, Tata Steel reported revenues of Rs 33,922 crores with an impressive EBITDA of Rs 6,841 crores. This was complemented by a solid production and delivery performance, including best-ever 2Q sales in Auto and Branded Products & Retail segments. In Europe, however, the revenues stood at £1,812 million, with an EBITDA loss of £242 million due to various operational challenges.

CEO and Managing Director T V Narendran commented, “Tata Steel India delivered steady performance, with crude steel production of around 5 million tons.” He also highlighted the company’s focus on sustainability, with plans for significant investment in a state-of-the-art scrap-based Electric Arc Furnace (EAF) in the UK and decarbonisation proposals in the Netherlands.

Future Outlook and Sustainability Initiatives

Moving forward, Tata Steel continues its commitment to reaching net zero carbon emissions by 2045, strategically investing in decarbonisation and sustainable practices. Initiatives like the investment in a scrap-based EAF at Port Talbot, UK, and an agreement to source 379 MW of renewable power for Indian operations, demonstrate the company’s dedication to responsible and sustainable growth in the steel sector. Tata Steel’s efforts in enhancing operational efficiency and pursuing environmental stewardship position it as a front-runner in the industry’s transition towards sustainable practices.