In FY2024, Tata Steel demonstrated remarkable resilience and strategic foresight, reporting a consolidated EBITDA of ₹23,402 crores. This performance was primarily bolstered by the company's operations in India, which saw significant improvements in both production and deliveries. The consolidated revenues for the January to March 2024 quarter stood at ₹58,687 crores, marking a 6% quarter-on-quarter increase due to enhanced volumes across various geographies. Despite a challenging operating environment, Tata Steel managed to maintain an EBITDA margin of -11% for the quarter.
For the full fiscal year, Tata Steel's consolidated revenues reached ₹229,171 crores. This impressive figure underscores the company's robust operational framework and strategic market positioning. The Indian operations were a significant contributor, with annual revenues amounting to ₹142,902 crores, slightly higher on a year-on-year basis. Notably, Tata Steel achieved its highest-ever crude steel production of 20.8 million metric tons and deliveries of 19.9 million metric tons. Domestic deliveries surged by 9% year-on-year, reflecting the growing demand for steel in India and the company's agile business model.
The company's capital expenditure for the quarter was ₹4,850 crores, with a total of ₹18,207 crores spent for the entire year. This substantial investment underscores Tata Steel's commitment to expanding its production capabilities and enhancing operational efficiencies. The phased commissioning of the 5 million metric tons per annum expansion at Kalinganagar is progressing well, positioning the company for future growth. Tata Steel's net debt stood at ₹77,550 crores, while group liquidity remained strong at ₹31,767 crores, including cash and cash equivalents of ₹9,532 crores.
In the UK, Tata Steel faced a challenging year, with annual revenues of £2,706 million and an EBITDA loss of £364 million. Liquid steel production in the UK was 2.99 million metric tons, with deliveries at 2.80 million metric tons. The company's strategic decision to close heavy-end assets and invest in a state-of-the-art Electric Arc Furnace at Port Talbot reflects its commitment to transitioning to greener steelmaking processes. This move follows extensive discussions with UK trade unions, highlighting Tata Steel's dedication to sustainable operations and job preservation.
The Netherlands operations also faced hurdles, primarily due to the relining of Blast Furnace 6, which was completed in early February. Despite these challenges, the Netherlands reported annual revenues of £5,276 million, with an EBITDA loss of £368 million. Liquid steel production was 4.81 million metric tons, and deliveries stood at 5.33 million metric tons. The completion of the relining project has stabilized operations, setting the stage for improved performance in the coming quarters.
Tata Steel's CEO and Managing Director, Mr. T V Narendran, emphasized the company's progress towards its strategic goals despite the challenging environment, averring, “In India, Tata Steel expanded its footprint, achieving the best-ever domestic deliveries of around 19 million metric tons, up 9% year-on-year. The company's automotive segment benefited from higher deliveries of hot-rolled and cold-rolled steel to auto OEMs, while the retail brand Tata Tiscon crossed 2 million metric tons annually. Tata Steel's commitment to innovation is evident, with over 100 patents filed annually on average over the past five years.”
NSE: TATASTEEL
Current Share Price: ₹174.20
Change: -₹0.65 (-0.37%)
Tata Steel stock is trading within a narrow range, indicating consolidation. The stock is in a sideways trend, reflecting a period of consolidation with no clear directional bias. The stock price is hovering around its 50-day moving average, indicating a lack of strong momentum in either direction. The MACD indicator is also relatively flat, suggesting a neutral market sentiment. Key Fibonacci retracement levels indicate support around ₹170 and resistance near ₹180. These levels are crucial for traders looking to identify potential breakout or breakdown points. The stock is trading near the middle of the Bollinger Bands, further indicating a lack of volatility and a sideways trading pattern. Overall, Tata Steel is currently in a consolidation phase, with technical indicators showing a neutral outlook.
