Tata Steel Q2 FY25: Net Profit Up to ₹833 Cr., Revenue Drop by 3%

Tata Steel Ltd. announced its financial results for the quarter ending September 30, 2024. In the July-September quarter, the company reported a net profit of ₹833.45 crore for Q2 of FY 2024-25. This marks a turnaround from a net loss of ₹6,196.24 crore in the same quarter last year. Revenue from operations totaled ₹53,904.71 crore, reflecting a 3% decline from ₹55,681.93 crore in the previous year. Despite a decline in revenue from operations, a reduction in expenses supported the profit. The company's expenses for the July to September quarter decreased by 6.3%, falling to ₹52,331.58 crore from ₹55,853.35 crore in the same period last year.

Quick Insights

• Revenue: ₹53,904.71 crore, down by 3% YoY 
• Net Profit: ₹833.45 crore, up from a net loss of ₹6,196.24 crore in Q2 FY 2023-24.
• Segment Performance: The domestic steel business remains the primary revenue generator, with Europe as the second-largest.
• Management’s Take: The company acknowledged that pricing pressures contributed to a "complex" macro-economic environment for the steel industry during the quarter.
• Stock Reaction: Tata Steel shares price opened at ₹156.11 on Thursday, up by around 1.61% from their previous close, post the Q2 results announcement on Wednesday.

Management Commentary

Post the Q2 results, V. Narendran, Managing Director and Chief Executive Officer of Tata Steel, said in a press release, "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.”

Stock Market Reaction

Tata Steel announced its Q2 results on Wednesday, after market hours. Following the announcement, the stock opened at ₹156.11 on Thursday, reflecting a 1.61% increase. It later reached a day’s high of ₹156.92 on the NSE.

About Tata Steel & Upcoming News

Founded in 1907, Tata Steel is a leading steel manufacturer with significant operations in India and Europe. The company also announced the appointment of Pramod Agrawal as an independent director, effective from November 6, for a term of five years. Tata Steel stated in an exchange filling, “The board of the company considered and unanimously approved the appointment of Mr. Pramod Agrawal (DIN: 00279727) as an additional director (Non-Executive, independent) effective November 6, 2024 and as an Independent Director of the Company for a term of 5 years effective November 6, 2024 through November 5, 2029, subject to the approval of the shareholders of the company.”