Tata Steel Q2 Results, Revenue Down 3%: Tata Steel Share Price Falls by 2%

Tata Steel Q2 results FY25 disclosed a 3.16% year-on-year decrease in the consolidated revenue. On the Tata Steel Q2 results date which was November 6, 2024, the Tata Steel share price closed at ₹153.62. On November 7, 2024, Tata Steel share price closed at ₹150.95.

Tata Steel Q2 Results FY25: Key Highlights

• Tata Steel Q2 results pointed out that consolidated revenues for Q2 FY2025 were ₹53,905 crores, down 3.19% YoY and EBITDA was ₹6,224 crores, up 44.24% YoY. EBITDA margin improved to 12% as compared to 7.75% same period last year.
• Consolidated EBITDA margin witnessed an improvement of around 300 bps to 12%, aided by higher volumes in India and improved profitability in the Netherlands.
• India revenues were ₹32,660 crores for the quarter and EBITDA was ₹6,912 crores, which translates to an EBITDA margin of 21%. Crude steel production was 5.28 million tons and was up 5% on a YoY basis. Deliveries stood at 5.11 million tons and were up on a YoY basis, driven by a 6% rise in domestic deliveries as per the Q2 results Tata Steel.
• The company has spent ₹4,806 crores on capital expenditure during the quarter and ₹8,583 crores for the half year.
• In the UK, during the quarter, revenues were £600 million and the EBITDA loss stood at £147 million. Liquid steel production was 0.39 million tons while deliveries were 0.63 million tons.
• Q2 results Tata Steel stated that the Netherlands revenues were £1,300 million and EBITDA for the quarter was £22 million. Liquid steel production at 1.66 million tons and deliveries at 1.50 million tons, were up on a YoY basis.
• Consolidated Crude steel production was 7.69 million tons and was up 5.20% on a YoY basis. Deliveries stood at 7.52 million tons and were up on a YoY basis, driven by a 6.36% rise in domestic deliveries.
• Tata Steel share price generated negative returns of 1.74% in the last 1 day as on November 7, 2024.

Tata Steel Q2 Results: Management Commentary

Mr. TV Narendran, Chief Executive Officer & Managing Director of Tata Steel said that – “Global operating environment remained complex, with key regions facing subdued growth. Macro-economic conditions in China continued to weigh on commodity prices including steel. In India, steel demand continued to improve but domestic prices were under pressure due to cheap imports. Despite this, Tata Steel has delivered broadly consistent performance, with India deliveries at 5.1 million tons for the quarter and 10.1 million tons for the half year. Domestic deliveries rose by 6% for the quarter and 5% for the half year on YoY basis. Among business verticals, automotive deliveries were aided by growth in hi-end products. Tata Tiscon achieved ‘best ever 20’ deliveries and was up 20% YoY. In September 2024, we successfully commissioned the 5 MTPA blast furnace at Kalinganagar. This coupled with the 2.2 MTPA CRM complex will further improve our product mix. 20 also marked the closure of our blast furnaces in UK. We have signed the grant funding agreement with the UK government and are progressing on the proposed transition to green steel. We remain fully committed to supporting affected employees and have offered the best ever package of support in Tata Steel UK. In Netherlands, our deliveries stood at 1.5 million tons and subdued steel prices weighed on performance. We are undertaking pilot projects to avoid or convert captured carbon emissions. I am happy to share that we have achieved 20% diversity for the first time in India and have also been recognised by worldsteel for process safety management.”

Highlighting the Tata Steel share price performance, it has generated a positive return of 1.61% in the last 1 week (as on November 7, 2024). Keep exploring stocks and open demat account with SMC Global Securities. Stay tuned for the upcoming Nifty 50 companies quarterly results.

Reference
https://www.tatasteel.com/media/22373/tata-steel-press-releases.pdf

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