Tata Steel Posts Rs 55,682 Crore Revenue in 2QFY24, Eyes Net Zero Carbon by 2045

India Business Thrives Amid EBITDA of Rs 6,841 Crores, Steady Performance Despite Market Volatility

Tata Steel reveals robust 2QFY24 financials with Rs 55,682 crore consolidated revenue; India business shines with a 20% margin; Targets Net Zero Carbon by 2045 amid expansion projects.

JAMSHEDPUR – Commitment to a greener future remains steadfast for Tata Steel as it aims for Net Zero emissions by 2045.

The steel giant is strategically planning a phase-wise decarbonisation of its operations, calibrated with regulatory frameworks and government support across countries.

Koushik Chatterjee, the firm’s Executive Director and CFO, elaborated on Tata Steel’s focus on cost optimisation, operational improvements and working capital management to maximize cashflows.

The company has also received an upgrade to investment grade by Moody’s during the quarter.

A significant Rs 12,560 crore impairment charge has been taken in the standalone financial statements, and a charge of Rs 6,358 crores is recorded in the consolidated financials in relation to the UK business.

The company’s net debt stands robust at Rs 77,032 crores, and its liquidity position is strong at Rs 27,637 crores.

Capital expenditure for the quarter and the half-year was reported as Rs 4,553 crores and Rs 8,642 crores respectively.

These figures align closely with their annual guidance of around Rs 16,000 crores for FY2024. The expansion projects, including the 5 MTPA at Kalinganagar and 0.75 MTPA EAF in Punjab, are actively under implementation.

Mr. T V Narendran, CEO & Managing Director, commended the domestic performance, noting increased sales in the Auto and Branded Products & Retail sectors. A steady crude steel production of around 5 million tons was achieved, and deliveries rose by 6% YoY. Tata Steel Aashiyana, the e-commerce platform, is servicing over 10,000 unique customers per month.

In the domestic market, despite market volatility and seasonal factors, there was a YoY increase of 6% in deliveries. Tata Steel India’s EBITDA stood at Rs 6,841 crores, with the business in India registering a margin of around 20%.

The report for the quarter ended September 30, 2023, confirmed a consolidated revenue of Rs 55,682 crores.

Furthermore, Tata Steel’s consolidated revenue for the first half of the financial year 2023-24 amounted to Rs 1,15,172 crores.