May 31, 2024
New Delhi, India
Tata Steel Q4 Results: Net Profit Drops 64.5% to ₹554 Crore, Dividend Declared
Tata Steel announced its Q4FY24 results on May 29, reporting a significant 64.5% drop in consolidated net profit to ₹554.6 crore compared to ₹1,566 crore in the same period last year. The company’s revenue from operations fell 6.8% to ₹58,687.3 crore, down from ₹62,961 crore in the year-ago quarter.
1. P&L Account: Income and EBITDA
The decline in net profit was driven by lower steel prices and restructuring expenses. Domestic steel prices remained pressured due to higher imports from China. Revenue from Tata Steel’s core India business, which constitutes 62% of total revenue, fell nearly 4%.
On an operating level, EBITDA for Q4FY24 decreased by 8.6% to ₹6,600.7 crore, compared to ₹7,219 crore last year. The EBITDA margin dropped by 20 basis points to 11.3%.
2. Dividend Declaration
Tata Steel’s board recommended a dividend of ₹3.60 per equity share, equivalent to 360% of the face value of Re 1 each, for FY24. The dividend is subject to shareholder approval at the AGM scheduled for July 15, 2024. If approved, it will be paid from July 19, 2024, with a record date set for June 21, 2024.
3. Financial Performance
For the full fiscal year FY24, Tata Steel reported consolidated revenues of ₹2,29,171 crore. EBITDA stood at ₹23,402 crore, driven mainly by improved performance in India. The company invested ₹4,850 crore in capital expenditure during Q4 and ₹18,207 crore for the entire fiscal year. Net debt is reported at ₹77,550 crore, with liquidity at ₹31,767 crore, including ₹9,532 crore in cash and equivalents.
5. Strategic Outlook
Tata Steel continues to focus on expanding its footprint and improving margins in India, which now accounts for 68% of total deliveries. CEO T V Narendran highlighted the company’s efforts to enhance automotive volumes and strengthen the retail brand Tata Tiscon. The ongoing 5 MTPA capacity expansion at Kalinganagar is expected to further boost incremental volumes.
In conclusion, despite the significant drop in net profit, Tata Steel remains committed to growth and strategic investments, particularly in the Indian market. The declared dividend reflects the company’s confidence in its long-term prospects.
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