Tata Steel reports Rs 19,040cr consolidated EBITDA, driven by strong India operations

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Tata Steel Limited, one of the world’s leading steel producers, has reported a consolidated EBITDA of ₹19,040 crore for the nine months of the financial year, reflecting a 14% year-on-year growth. Despite global challenges, including subdued steel prices and geopolitical uncertainties, the company maintained its focus on operational efficiencies, innovation, and market diversification to deliver a solid performance.

How Is Tata Steel Achieving Resilient Growth Amid Global Challenges?

Tata Steel’s resilience stems from its robust India operations, which continue to act as a cornerstone of growth. During the October-December quarter, the company’s India business posted revenues of ₹32,930 crore, with an EBITDA of ₹7,921 crore and an impressive margin of 24%. Crude steel production in India reached 5.69 million tonnes, marking a 6% year-on-year increase, while deliveries climbed by 8% to 5.29 million tonnes.

The company’s focus on high-margin products and export strategies has helped it withstand the pressure of falling global steel prices. CEO highlighted that the commissioning of a new 5 million tonnes per annum (MTPA) blast furnace at Kalinganagar, along with the launch of a 0.9 MTPA Continuous Annealing Line (CAL), significantly bolstered Tata Steel’s production capabilities. The CAL has already gained approvals from major automotive original equipment manufacturers (OEMs), setting the stage for a deeper penetration into the automotive sector.

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Why Are International Markets a Challenge for Tata Steel?

While India remains a stronghold, Tata Steel’s international operations in the UK and Netherlands face significant headwinds. The UK operations reported revenues of £523 million, with an EBITDA loss of £67 million due to lower demand and a multi-year low in market spreads. However, the closure of heavy-end assets in the UK has started yielding benefits, improving fixed-cost structures and boosting cost efficiency by £115 per tonne quarter-on-quarter.

In , Tata Steel posted revenues of £1,282 million with zero EBITDA. Nevertheless, production and deliveries showed sequential growth, indicating an improving trajectory. The company continues to engage with the Dutch government to support its decarbonization goals, which are central to its long-term strategy.

How Does Tata Steel Balance Sustainability and Financial Stability?

Sustainability remains a critical pillar for Tata Steel, with the company reaffirming its commitment to achieving net zero emissions by 2045. A notable milestone in this journey was the operationalization of India’s first all-women shift at the Noamundi iron ore mine, underscoring Tata Steel’s dedication to diversity and inclusion.

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Financially, the company’s liquidity position remains robust, with total group liquidity standing at ₹28,219 crore, including cash and cash equivalents of ₹13,119 crore. Tight working capital management and operational efficiency enabled Tata Steel to reduce its net debt by ₹3,000 crore quarter-on-quarter to ₹85,800 crore.

Capital expenditure during the quarter amounted to ₹3,868 crore, part of a total ₹12,450 crore spent between April and December 2024. Investments include the development of electric arc furnace projects in Ludhiana (0.85 MTPA) and the UK (~3 MTPA), positioning the company as a leader in low-carbon steelmaking.

What Are Tata Steel’s Future Plans and Market Outlook?

Looking ahead, Tata Steel remains committed to strengthening its position in the global steel industry while advancing its sustainability objectives. The ramp-up of the facility, coupled with the integration of high-end production lines, is expected to enhance cost structures and product offerings in India.

Globally, Tata Steel is adapting to dynamic market conditions, including the surge in steel exports from China, which averaged 9 million tonnes per month in 2024. The company’s strategic focus on operational efficiencies, cost optimization, and market diversification positions it to navigate these challenges effectively.

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Executive Director and CFO emphasized that the global steel industry continues to face pricing pressures, but Tata Steel’s consistent focus on profitability in its core markets ensures steady performance. The company’s ability to balance sustainability initiatives with financial prudence further strengthens its competitive edge in an evolving market landscape.

Expert Insights: How Does Tata Steel Lead in Innovation and Sustainability?

Industry experts credit Tata Steel’s multi-year digital transformation and focus on innovation as key factors behind its resilience. The company’s operations at Jamshedpur, Kalinganagar, and IJmuiden have received the World Economic Forum’s Global Lighthouse recognition for leveraging advanced manufacturing technologies.

Tata Steel’s leadership in ResponsibleSteel certification, covering over 90% of its steel production in India, highlights its sustainability credentials. The company’s ongoing efforts to decarbonize operations, combined with investments in new technologies, underscore its vision to lead the industry in sustainable steelmaking.


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