Tata Steel’s Performance So Far: A Financial Overview

Tata Steel share price is currently trading at ₹140.16, reflecting a decline of ₹1.55 or 1.09% as of 11:25 AM on December 24, 2024. The stock opened at ₹141.20 and recorded a high of ₹141.50 and a low of ₹139.82 during the day. 

Over the past 5 days, Tata Steel’s stock has decreased by ₹5.39, or 3.70%. In the last month, it dropped by ₹3.51, or 2.44%, and in the past six months, it saw a significant decline of ₹37.80, or 21.24%. However, on an annual basis, the stock has gained ₹4.96, reflecting a growth of 3.67%. Over a 5-year period, Tata Steel has delivered remarkable returns, increasing by ₹93.21, or 198.53%.

Recent Developments

On December 23, the Directorate General of Trade and Remedies (DGTR) began investigating the steel industry’s request for a 25% safeguard duty on imports. The DGTR is looking into whether a temporary tax of up to 25% should be imposed to curb the excessive steel import. 

Steel Minister HD Kumaraswamy discussed the safeguard duty earlier. It is being considered to address concerns over a surge in cheap steel imports, particularly from China. Provisional government data showed a record high of steel imports from China in the first eight months of the fiscal year, raising concerns for domestic steel producers.

Financial Highlights

For the first half of FY25, Tata Steel reported consolidated revenues of ₹1,08,676 crore, with EBITDA improving by 25% YoY to ₹13,046 crore, reflecting an EBITDA margin of 12%. In the July-September 2024 quarter, revenues stood at ₹53,905 crore, and EBITDA was ₹6,224 crore, maintaining a 12% margin. The company invested ₹4,806 crore in capital expenditure during the quarter and ₹8,583 crore over the half-year period. Net debt stood at ₹88,817 crore, supported by strong group liquidity of ₹26,028 crore, including ₹10,575 crore in cash and cash equivalents.

In India, quarterly revenues were ₹32,660 crore, and EBITDA was ₹6,912 crore, translating to a 21% margin. Crude steel production rose 5% YoY to 5.28 million tons, while deliveries increased by 6% YoY to 5.11 million tons. Half-year revenues in India reached ₹65,853 crore, with EBITDA at ₹13,946 crore. Notably, the commissioning of India’s largest blast furnace at Kalinganagar in September 2024 boosted crude steel capacity to 26.6 MTPA.

About Tata Steel Limited

Tata Steel Limited, a part of the Tata Group, is a leading Indian multinational steel manufacturing company. Established on August 26, 1907, in Jamshedpur, Jharkhand, the company is headquartered in Mumbai, Maharashtra. Under the leadership of its CEO, T.V. Narendran, who has held the position since October 31, 2017, Tata Steel has grown into a prominent name in the global steel industry.

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