Tata Steel shares in focus post-Q4 results: Check top highlights, dividend payout, record date, and management commentary

The company said that its total revenue from operations on a consolidated basis stood at ₹56,218 crore, down 4.2% against ₹58,687 crore revenue logged in the year-ago period.

On a sequential basis, the figure grew 4.7% from ₹53,648 crore seen in the December 2024 quarter.

The company said that the increase in revenue on a QoQ basis was due to improved volumes despite a drop in realisations in the UK and Netherlands.

The company's production (in million tonnes) stood at 7.45 against 7.92 in the March 2024 quarter and ₹7.77 in the December 2024 quarter. Deliveries (in million tonnes) came in at 8.33 crore against 7.72 in Q3 FY25 and ₹7.98 in Q4 FY24.

The cost of raw materials for the quarter under review came in at ₹21,986 crore, down 9.4% against ₹24,273 crore seen in the corresponding quarter of the previous fiscal year.

In the December quarter, raw materials' cost stood at ₹23,429 crore. This translates to a 6% drop on a QoQ basis.

Tata Steel said that the costs of raw material moved lower on a sequential basis, driven by a decline in coking coal consumption cost in India and the Netherlands.

The company said that its other expenses increased to ₹18,932 crore from ₹17,742 crore seen in the December quarter due to higher repairs and maintenance (G blast furnace in India) and power & fuel expenses. Q3 had a reversal with respect to regulatory charges.

The company's operating profit, or EBITDA (earnings before interest, taxes, depreciation, and amortisation), came in at ₹6,762 crore. The figure increased by 12.8% QoQ and 1.97% YoY.

Adjusted EBITDA (EBITDA adjusted for changes on account of forex movement on intercompany debt/receivables) came in at ₹6,503 crore against ₹7,155 crore in the December quarter.

In the year-ago period, adjusted EBITDA was ₹6,969 crore.

Reported PAT, profit after tax, increased by 116% to ₹1,201 crore against ₹555 crore in the year-ago period. On a sequential basis, the figure grew by 307%.

Other highlights

• India revenues were ₹34,661 crore and EBITDA was ₹7,418 crore, which translates to an EBITDA margin of 21%. Crude steel production was 5.44 million tons and moved lower on QoQ basis due to reline of one of the blast furnaces in Jamshedpur. Deliveries stood at 5.60 million tons and were up 6% QoQ.

• UK revenues were £551 million and EBITDA loss stood at £80 million. Deliveries were 0.63 million tons, up 12% on QoQ basis.

• Netherlands revenues were €1,624 million and EBITDA was €14 million. Deliveries were 1.75 million tons, up 14% on QoQ basis.

The company said that its 5 MTPA blast furnace at Kalinganagar is ramping up, and the phased commissioning of the 2.2 MTPA CRM complex is progressing with Continuous Galvanising lines expected to be commissioned in the next few months.

"Construction is underway for the EAF in Ludhiana. In the UK, we have received planning permission for the EAF project at Port Talbot, which will commence site activity in July 2025," the company said in its earnings release.

FY25 Numbers

Tata Steel, in its earnings release, said consolidated annual revenues stood at ₹2,18,543 crore, and EBITDA was ₹25,802 crore with a margin of around 12%. EBITDA improved by 10% YoY despite the challenging operating environment.

• India revenues were ₹1,33,444 crore and EBITDA was ₹29,285 crore, which translates to an EBITDA margin of 22%. Achieved ‘highest ever’ crude steel production of nearly 21.7 million tonnes as well as ‘highest ever’ deliveries of ~20.9 million tonnes. Production was aided by 5 MTPA expansion at Kalinganagar and Neelachal Ispat Nigam Limited operating at rated capacity during the year.

• UK revenues were £2,321 million and EBITDA loss stood at £385 million. Deliveries were 2.51 million tons. As we have transitioned the operating model to purchased substrate based downstream production, fixed costs have been reduced by 23% or around £230 million.

• Netherlands revenues were €6,273 million and EBITDA stood at €90 million, with stabilisation of operations leading to liquid steel production of ~6.75 million tons. Deliveries were up 17% YoY to 6.25 million tons.

What management said

T V Narendran, Chief Executive Officer & Managing Director: “FY2025 has been an important transition year for Tata Steel with significant developments across operating geographies. We commissioned India’s largest blast furnace at Kalinganagar, safely decommissioned two blast furnaces in the UK and achieved production levels near rated capacity in the Netherlands. India deliveries were the best ever at around 21 million tonnes and were up 5% YoY, aided by a smooth ramp-up of the new blast furnace at Kalinganagar and capacity utilisation close to 100% at the remaining operations."

The CEO added, "At the segment level, Tata Steel continues to be the preferred supplier for automotive steel, with a high share of business in new model launches. Tata Tiscon achieved ‘best ever’ volumes and grew by 19% YoY to around 2.4 million tonnes. We have invested more than Rs 1,600 crore on R&D in the last 5 years, enabling us to become the first Indian steel supplier to have end-to-end capabilities in hydrogen transportation and to localise CP780 automotive grade, demonstrating our customer centricity."

Koushik Chatterjee, Executive Director and Chief Financial Officer, said, “Tata Steel Consolidated revenues for FY2025 were around $26 billion, and EBITDA was $3.1 billion. Consolidated EBITDA improved by 10% YoY, aided by higher volumes and a reduction in controllable costs despite the drop in realisations. Neelachal Ispat Nigam Limited achieved an annual EBITDA of around ₹1,000 crore with a margin of 19% and free cash flow in excess of ₹1,000 crore. This demonstrates the turnaround of the company which was closed at the time of acquisition almost three years ago."

Dividend Update

Tata Steel said that its board has recommended a dividend of ₹3.60 per ordinary (equity) share of face value ₹1/- each (360%) to the shareholders of the company for FY2024-25.

The dividend, if approved by the shareholders at the AGM, will be paid, subject to deduction of applicable tax at source, within five days from the date of the AGM.

Record Date

Tata Steel said that the company's board has fixed Friday, June 6, 2025, as the record date for determining the members entitled to receive the dividend for FY2024-25.

Appointment of Secretarial Auditor

The company said that it has approved the appointment of M/s. Parikh & Associates, Practicing Company Secretaries, having Firm Registration No. P1988MH009800, as the Secretarial Auditors of the Company for a period of five years to hold office from the conclusion of the ensuing AGM to be held on July 2, 2025, till the conclusion of the 123rd AGM of the Company to be held in the year 2030, to conduct a secretarial audit of the Company for FY 2025-26 through FY 2029-30.