Tata Steel has reported a decline of 64 per cent year-on-year (YoY) in its consolidated net profit as the company recorded a consolidated net profit of Rs 611.48 crore in Q4 FY24, from Rs 1,704.86 crore in the same quarter of previous year. However, when compared quarter-on-quarter (QoQ), there is a fall of 19 per cent from Rs 513.37 crore in Q3 FY24.
The company’s revenue from operations has also gradually decreased by 6.7 per cent to Rs 58,687.31 crore in Q4 FY24 while in Q4 FY23, the company’s revenue from operations stood at Rs 62.961.54 crore. In Q3 of FY24, the company recorded its revenue from operations at Rs 55,539.77, marking an increase of six per cent QoQ.
Furthermore, the board of the company has approved the issuance of up to Rs 3,000 crore in new debt instruments in the form of non-convertible debentures (NCDs) through private placement. These securities may be issued in one or more tranches.
T V Narendran, Chief Executive Officer and Managing Director, said, “FY2024 has been a year of progress for Tata Steel with transition towards stated goals in India and abroad despite the challenging operating environment. In India, which is a structurally attractive market, we have delivered improved margins and continued to expand our footprint in terms of volumes as well as product portfolio. Our domestic deliveries were best ever at around 19 million tons and were up 9% YoY with broad based improvement across chosen market segments. Automotive volumes were aided by higher deliveries of hot-rolled and cold-rolled steel to auto OEMs while our well-established retail brand Tata Tiscon crossed 2 million tons on an annual basis. We have consistently filed 100+ patents per annum, on average, in the last 5 years. Overall, India deliveries now make up
68% of total deliveries and will continue to grow with incremental volumes from 5 MTPA capacity expansion at
Kalinganagar. With respect to the UK operations, we have decided to proceed with the proposed restructuring of
heavy end UK assets and transition to greener steelmaking after due consideration of all the options over the last 7
months in consultation with union representatives. We are committed to creating a low-CO2 steel business that
preserves the majority of the jobs in UK while also creating economic opportunities. In Netherlands, our production
was lower due to the relining of BF6. The relining was completed in early February and we have stabilised the
operations.”
Additionally, the company has approved the plan to inject up to $2.11 billion (Rs 17,407.50 crore) into T Steel Holdings (TSHP) Singapore, a wholly owned subsidiary, in order to pay off debt and cover the expenses associated with Tata Steel UK’s restructuring. A plan to convert loan instruments worth $565 million, or around ₹4,661.25 crore, into equity shares in TSHP for the fiscal year 2024–2025 has also been approved by the board.
The company in its 117 th annual general meeting (AGM) recommended a dividend of Rs 3.60 per Ordinary (Equity) Share of face value Rs 1 each to the shareholders of the company for FY24. However, the dividend recommended by the board of directors of the company is subject to the approval of the shareholders at the ensuing AGM of the company scheduled to be held on Monday, July 15, 2024.
“Moving to strategic initiatives, we have been carefully considering the alternative proposal from the representative body of the UK trade unions and have concluded that maintaining one blast furnace till the transition would have incurred at least £1.6 billion of additional costs, created significant operational and safety risk, and delayed the EAF by two years. We have therefore discussed with the Unions and concluded national level consultation on the asset plan. We will proceed with our
proposal to shut down heavy end assets this year, and setup the EAF by 2027. This is a difficult period of change
for our people and we will do our upmost to support the affected employees. With respect to the Electric Arc Furnace,
we will place equipment orders by Sep 2024 and have signed the agreement with the UK National Grid securing the
high voltage connection, which will be available on schedule. We have as part of discussions with the unions, offered
the best ever package of support for affected employees in Tata Steel UK. We have also agreed the final and detailed
terms of the proposed grant package with the UK government to support the £1.25 billion investment,” Koushik Chatterjee, Executive Director and Chief Financial Officer, added.
