Tata Steel reports Rs 6,122cr consolidated EBITDA for Q1FY24

Tata Steel has released its financial report for the quarter ending June 30, 2023, showing a consolidated EBITDA of Rs 6,122 crores. The firm’s consolidated revenues for the quarter stood at Rs 59,490 crores, with an EBITDA margin of 10%. The net profit after tax was reported at Rs 525 crores, impacted by a non-cash deferred tax charge related to the British Steel Pension Scheme transaction.

Capital expenditure during the quarter amounted to Rs 4,089 crores, as work on a 5 MTPA expansion at Kalinganagar and a 0.75 MTPA EAF mill in Punjab progressed. The firm’s net debt is Rs. 71,397 crores, with a strong group liquidity of Rs 30,569 crores.

In India, Tata Steel reported revenues of Rs 34,901 crores and an EBITDA of Rs 7,514 crores. Crude steel production was around 5 million tons, up by 2% YoY, due to ramp-up at Neelachal Ispat Nigam Limited. Deliveries increased by 18% YoY, resulting in an EBITDA per ton of Rs 15,651 and an EBITDA margin of 22%.

In Europe, the revenues were £2,083 million, while the EBITDA loss stood at £153 million. A decrease in crude steel production was attributed to the planned relining of BF6 at Tata Steel Netherlands.

T V Narendran, Chief Executive Officer & Managing Director, cited global economic headwinds affecting commodity prices, including steel, but maintained that domestic steel demand in India continued to grow. He highlighted a strong growth in key segments such as Branded Products & Retail and Industrial Products & Projects. He also noted the successful expansion efforts at Kalinganagar and sustainability initiatives across different operating locations.