Tata Steel Achieves Significant Growth in Revenues and Production Amid Challenging Market Conditions
Tata Steel announced robust financial results for FY2024, reporting a consolidated EBITDA of Rs 23,402 crores, driven by strong performance in its India operations.
JAMSHEDPUR – Tata Steel disclosed its financial outcomes for the fourth quarter and the fiscal year ending March 31, 2024.
The company recorded consolidated revenues of Rs 58,687 crores for the fourth quarter, marking a 6% increase from the previous quarter.
This growth was attributed to higher volumes across different regions.
Impressive Annual Performance
For the full fiscal year 2024, Tata Steel’s consolidated revenues reached Rs 2,29,171 crores.
The company’s EBITDA for the year stood at Rs 23,402 crores, supported mainly by its operations in India.
Capital expenditure for the quarter was Rs 4,850 crores, totaling Rs 18,207 crores for the entire year.
The expansion at Kalinganagar is progressing as planned.
Production and Financial Highlights
Tata Steel India achieved its highest-ever crude steel production of approximately 20.8 million tons and deliveries of around 19.9 million tons in FY2024.
Annual India deliveries increased by 9% year-on-year.
In the fourth quarter, India deliveries rose by 5% year-on-year to 5.42 million tons, with revenues at Rs 36,864 crores and an EBITDA of Rs 8,261 crores, resulting in an EBITDA margin of around 22%.
Strategic Moves and Future Plans
Tata Steel will begin closing heavy-end assets in the UK and invest in a new Electric Arc Furnace at Port Talbot following discussions with UK trade unions.
The company’s net debt stands at Rs 77,550 crores, with robust liquidity of Rs 31,767 crores, including cash and equivalents of Rs 9,532 crores.
Management Comments
Mr. T V Narendran, CEO & Managing Director, stated, “FY2024 has been a year of progress for Tata Steel. We have improved margins and expanded our footprint in India. Our domestic deliveries were the best ever, supported by higher automotive volumes and strong retail sales.”
Mr. Koushik Chatterjee, Executive Director and CFO, added, “Tata Steel’s consolidated revenues for FY2024 were around $27.7 billion, with EBITDA at Rs 23,402 crores. We have maintained strong liquidity and continued to invest in our growth and sustainability initiatives.”
Tata Steel’s Board of Directors has recommended a dividend of Rs 3.60 per fully paid-up equity share.
