Tata Steel Ltd Share Price – NSE  / BSE

Steel, Mid Cap

Tata Steel Ltd is down for a fifth straight session today. The stock is quoting at Rs 139.27, down 3.4% on the day as on 12:59 IST on the NSE. The benchmark NIFTY is down around 0.94% on the day, quoting at 23659.1. The Sensex is at 78018.99, down 0.83%.Tata Steel Ltd has lost around 12.03% in last one month.Meanwhile, Nifty Metal index of which Tata Steel Ltd is a constituent, has eased around 10.64% in last one month and is currently quoting at 9078.5, down 2.5% on the day. The volume in the stock stood at 316.24 lakh shares today, compared to the daily average of 360.18 lakh shares in last one month.

The benchmark November futures contract for the stock is quoting at Rs 139.28, down 3.45% on the day. Tata Steel Ltd jumped 12.27% in last one year as compared to a 20.25% rally in NIFTY and a 30.31% spurt in the Nifty Metal index.

The PE of the stock is 11.05 based on TTM earnings ending September 24.

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Total revenue from operations declined 3.19% year on year (YoY) to Rs 53,904.71 crore in the quarter ended 30 September 2024.

Profit before exceptional items & tax stood at Rs 2,146.24 crore in Q2 of FY25 as compared with Rs 159.71 crore posted in same quarter last year. The company reported net exceptional profit of Rs 18.09 crore during the quarter.

Reported EBITDA in second quarter of FY25 stood at Rs 6,224 crore, up 44.24% YoY. EBITDA margin was around 12% during the period under review.

The company’s consolidated crude steel production increased by 5% YoY to 5.28 million tons while Deliveries grew to 5.11 million tonne in Q2 FY25.

The company has spent Rs 4,806 crore on capital expenditure during the quarter.

In India, Tata Steel’s revenues were at Rs 32,660 crores for the September 2024 quarter, registering a decline of 6.41% YoY. The crude steel production increased by 5% YoY to 5.28 million tons while Deliveries grew to 5.11 million tonne in Q2 FY25. EBITDA declined 0.68% YoY to Rs 6,912 crore during the period under review.

For the quarter, UK revenues were £600 million and EBITDA loss stood at £147 million. Liquid steel production was 0.39 million tons while deliveries were 0.63 million tons.

Netherlands revenues were £1,300 million and EBITDA for the quarter was £22 million. Liquid steel production was 1.66 million tons and deliveries were at 1.50 million tons, up YoY basis.

T V Narendran, CEO & MD, said, “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.

Among business verticals, automotive deliveries were aided by growth in hi-end products. Tata Tiscon achieved ‘best ever 2Q’ 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. 2Q 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.”

Koushik Chatterjee, executive director and CFO said: “Tata Steel Consolidated revenues for the half year were Rs 1,08,676 crores and EBITDA was Rs 13,046 crores. Consolidated EBITDA margin witnessed an improvement of around 300 bps to 12%, aided by higher volumes in India and improved profitability at Netherlands. This was despite challenging operating environment across geographies. Our second blast furnace at Kalinganagar is ramping up well and associated facilities such as Continuous Annealing Line and Air Separation Unit will be commissioned in the later part of the year.

Separately, we have placed equipment orders for our 0.85 MTPA Electric Arc Furnace plant in Ludhiana. Our performance in UK and Netherlands was adversely impacted by the compression in steel spreads. Further, UK was also weighed by the transitory nature of operations as the blast furnaces were safely decommissioned and steel stock was built up to operate downstream. We spent around Rs 8,583 crores on capital expenditure during the half year, mostly in India.

Our net debt stands at Rs 88,817 crores and the group liquidity position remains strong at Rs 26,028 crores, with cash and cash equivalents of Rs 10,575 crores. We are focused on cost optimisation, operational improvements and working capital management to maximise cashflows. During our transition to green steel, we will operate our downstream operations by sourcing substrate. This will help us sustain our significant market presence across steel end use segments in UK. In Netherlands, we are engaged with the government on support for the decarbonisation of our operations.”

Tata Steel Group is among the top global steel companies with an annual crude steel capacity of 35 million tons per annum.

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Net profit of Tata Steel reported to Rs 833.45 crore in the quarter ended September 2024 as against net loss of Rs 6196.24 crore during the previous quarter ended September 2023. Sales declined 2.94% to Rs 53489.73 crore in the quarter ended September 2024 as against Rs 55107.21 crore during the previous quarter ended September 2023.

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The Board of Tata Steel at its meeting held on 06 November 2024 has appointed Pramod Agrawal (DIN: 00279727) as an Additional Director (Non-Executive, Independent) effective 06 November 2024 and as an Independent Director of the Company for a term of 5 years effective 06 November 2024 through 05 November 2029, subject to the approval of the shareholders of the Company.

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