Tata Steel reports robust financial results for FY2024, announces expansion and sustainable initiatives

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Tata Steel Limited has announced its consolidated financial results for the financial year ended March 31, 2024, showcasing a solid performance with consolidated revenues reaching ₹2,29,171 crores. The EBITDA for the year stood impressively at ₹23,402 crores, driven largely by robust operations in India. The company reported an EBITDA margin of approximately 11% for the January – March 2024 quarter with quarterly revenues of ₹58,687 crores, indicating a 6% increase quarter-over-quarter.

Capital Expenditure and Expansion Efforts

Throughout FY2024, Tata Steel has demonstrated a strong commitment to growth and sustainability. The company invested ₹4,850 crores in capital expenditure during the quarter and ₹18,207 crores for the full year. Notably, the phased commissioning of the 5 million tons per annum (MTPA) expansion at Kalinganagar is progressing well, promising to enhance the company’s production capacity significantly.

Tata Steel reports robust financial results for FY2024, announces expansion and sustainable initiatives

Tata Steel reports robust financial results for FY2024, announces expansion and sustainable initiatives

Debt Management and Liquidity

The company maintains a healthy financial profile with net debt standing at ₹77,550 crores. Group liquidity remains robust at ₹31,767 crores, which includes cash and cash equivalents of ₹9,532 crores, ensuring financial stability and support for ongoing and future projects.

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Performance Highlights and Market Expansion

Tata Steel’s India operations have been particularly noteworthy, achieving the highest ever crude steel production of approximately 20.8 million tons and deliveries of around 19.9 million tons. Domestic deliveries increased by 9% year-over-year, capitalizing on the growing steel demand in India. The EBITDA for the Indian operations rose by 10% year-over-year to ₹31,057 crores, reflecting an EBITDA margin of 22%.

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Challenges and Restructuring in European Operations

While the company’s operations in India flourished, its European ventures faced challenges. The UK operations reported an annual EBITDA loss of £364 million, and the Netherlands operations reported a loss of £368 million. However, Tata Steel is set to commence the closure of heavy end assets in the UK in June and will invest in a state-of-the-art Electric Arc Furnace at Port Talbot, marking a significant step towards greener steelmaking.

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Sustainability and Innovation

Under the leadership of CEO and Managing Director T V Narendran, Tata Steel continues to advance its sustainability agenda. The company has achieved zero effluent discharge at its Kalinganagar site in India and has been recognized as a Sustainability Champion by worldsteel for the seventh consecutive year. These efforts underscore Tata Steel’s commitment to environmental stewardship and sustainable industry practices.

Looking ahead, Tata Steel is poised for continued growth with its strategic expansions and focus on sustainable operations. The company’s robust financial performance and proactive management strategies are expected to drive further success in the competitive global steel market.

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