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Tata Steel Group is among top global steel companies with an annual steel production capacity of ~34 million tonnes per annum (MTPA).

• Tata Steel (TSL) is one of the world’s most geographically diversified steel producers, with operations and commercial presence across the world
• TSL has been a part of the DJSI Emerging Markets Index since 2012 and has been consistently ranked among top 10 steel companies in the DJSI Corporate Sustainability Assessment since 2016

Tata Steel’s consolidated EBITDA came in broadly in line with our estimate for Q3FY23.

• For Q3FY23, Tata Steel’s standalone operations reported sales volume of 4.5 million tonnes (MT), up 6% YoY but down 4% QoQ (our estimate: 4.5 MT). Tata Steel standalone operations reported EBITDA/tonne of
  ₹ 11350/tonne, marginally lower than our estimate of ₹ 12500/tonne. For Q3FY23, Tata Steel’s European operations reported negative EBITDA/tonne of US$95/tonne (our estimate of negative EBITDA/tonne of US$75/tonne)
• For Q3FY23, Tata Steel’s consolidated operations reported a topline of
  ₹ 57084 crore, down 6% YoY, 5% QoQ. Consolidated reported EBITDA for the quarter was at ₹ 4048 crore, down 75% YoY and 33% QoQ, broadly in line with our estimate of ₹ 4279 crore
• The British Steel Pension Scheme (BSPS) with Tata Steel UK as sponsor has completed a substantial part of its de-risking journey with ~60% of its liabilities insured. The buy-in transaction along with actuarial movements has resulted in a non-cash deferred tax expense of ₹ 1783 crore & increased the overall deferred tax expense for the quarter to ₹ 2150 crore. The ensuing consolidated reported net loss for the quarter was at ₹ 2502 crore

Iron & Steel Products company Tata Steel announced Q1FY25 results:

Financial Highlights: 

• Consolidated Revenues for the Apr – June 2024 quarter were Rs 54,771 crore and EBITDA was Rs 6,822 crore with an EBITDA margin of around 12.5%.
• The company has spent Rs 3,777 crore on capital expenditure during the quarter. The phased commissioning of the 5 MTPA expansion at Kalinganagar is progressing well towards blast furnace start-up in September 2024.
• Net debt stands at Rs 82,162 crore. Our group liquidity remains strong at Rs 36,460 crore, which includes cash & cash equivalents of Rs 10,799 crore.
• India revenues were Rs 33,194 crore for the quarter and EBITDA was Rs 7,029 crore, which translates into an EBITDA margin of 21%
• Crude steel production was around 5.27 million tons and was up 5% on YoY basis. Deliveries stood at 4.94 million tons and were up on YoY basis, driven by 4% rise in domestic deliveries.
• At segment level, Automotive witnessed ‘best ever Q1’ sales and Tata Tiscon deliveries were up 15% YoY leading to best ever quarterly sales.
• UK revenues were GBP 646 million and EBITDA loss stood at GBP 91 million. Liquid steel production as well as deliveries were 0.68 million tons.
• Netherlands revenues were GBP 1,344 million and EBITDA for the quarter was GBP 43 million. On per ton basis, EBITDA improved by GBP 48 per ton on QoQ basis. Liquid steel production was 1.69 million tons and deliveries were at 1.47 million tons, up QoQ and YoY basis.
• Tata Steel commenced the closure of heavy end assets at Port Talbot with shutdown of BF #5 in early July 2024. The closure of BF #4 is scheduled for September 2024.

T V Narendran, Chief Executive Officer & Managing Director: “During the quarter, subdued steel demand across most regions weighed on global steel prices. In India, steel demand was broadly stable despite some impact due to elections and heat waves. In India, our crude steel production was up 5% YoY to around 5.3 million tons. Deliveries at around 4.9 million tons were the ‘best ever 1Q’ sales aided by 4% YoY growth in domestic deliveries. Among business verticals, automotive witnessed 9% YoY growth aided by higher than market growth in select sub segments. Tata Tiscon continued to grow aided by enhanced reach and scale-up of consumer connect programs. We are focusing on innovative solutions to shape market practices and enhance customer experience to retain leadership in chosen segments. We continue to expand our footprint via new dealer appointments, e-commerce portals and influencers. The 5 MTPA expansion project at Kalinganagar is on track for the blast furnace to start in September 2024. The heating process for blast furnace stoves and coke oven batteries has commenced as planned. Additionally, the commissioning activities for Continuous Annealing Line of the 2.2 MTPA CRM complex at Kalinganagar are progressing well for start up in August 2024. In UK, we have safely ceased operations at one of the blast furnaces (BF #5) at Port Talbot and are on track to close the remaining blast furnace by September 2024. We are committed to supporting affected employees alongside providing multiple training and community support schemes. In Netherlands, our production has risen on QoQ as well as YoY basis, upon return to normal operating levels. Sustainable operations are integral to our strategic goals and Tata Steel has launched the first carbon bank in India. Further, Tata Steel remains dedicated to enhancing diversity and am happy to share that we recently deployed the first-ever crew of female firefighters in the Indian steel industry.”

Koushik Chatterjee, Executive Director and Chief Financial Officer: “Tata Steel Consolidated revenues for the quarter were Rs 54,771 crore and EBITDA was Rs 6,822 crore. Consolidated EBITDA margin was around 12.5%, with an improvement of more than 100 bps on QoQ basis. India revenues were around Rs 33,194 crore and EBITDA was Rs 7,029 crore, which translates to an EBITDA per ton of Rs 14,227 and an EBITDA margin of 21%. Netherlands revenues were broadly stable despite subdued demand dynamics but cost profile continued to improve with stabilisation of operations leading to EBITDA improving from - ve GBP 27 million in 4Q to ve GBP 43 million in 1Q. This was partly offset by EBITDA loss at UK operations which is in the midst of restructuring and transition. Given the planned closure of blast furnaces in UK, there has been steel stock build-up for the downstream operations which impacted working capital. We continue to focus on growth in India and have spent Rs 3,777 crore on capital expenditure during the quarter. Net debt stands at Rs 82,162 crore. Group liquidity position remains strong at Rs 36,460 crore, which includes Rs 10,799 crore of cash and cash equivalents. We also remain focused on cost optimisation, operational improvements and working capital management to maximise cashflows. With respect to the UK transition, we are proceeding as per previously announced timelines for the closure of the heavy end, a step which is critical to address the deep cash burn associated with the upstream end of life assets. We are also on track with regard to supply chain preparedness for imports of semi-finished steel which will be utilized by the downstream assets to continue to service customers, after the closure of the blast furnaces. We are fully committed to supporting affected employees, have offered the best ever package of support in Tata Steel UK, and continue to engage deeply with the Unions in this respect. The Voluntary Redundancy Aspiration process was launched on 10th July and will close on 07th August. We are working closely with the recently elected UK government on finalisation of grant funding process for the new Electric Arc Furnace project. We have also started active engagement with the government in Netherlands on support for the decarbonisation project.”

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