Tata Steel Returns to Profit with Rs 759 Crore in Q2 FY25; Revenue Declines Due to Import Pressures

Tata Steel Ltd. reported a consolidated net profit of Rs 759 crore for Q2 FY25, reversing the previous year’s loss of Rs 6,511 crore. Despite this positive bottom line, the company’s revenue fell 3% YoY to Rs 53,905 crore, primarily due to subdued steel pricing in India, driven by cheap imports from China. Domestic steel deliveries slightly improved to 5.11 million tonnes from 4.82 million tonnes last year.

The steel industry faced challenges globally, with pricing pressures exacerbated by China’s macroeconomic conditions. Tata Steel’s CEO, T.V. Narendran, acknowledged that pricing struggles were further influenced by cheap imports affecting Indian prices, despite stronger demand.

For the quarter, Tata Steel’s EBITDA surged to Rs 6,224 crore, up from Rs 4,315 crore a year ago, driven by improved demand and lower input costs. However, the company’s net debt grew to Rs 88,817 crore due to Rs 8,583 crore capital expenditure, mainly in India, including the expansion of its Kalinganagar plant.

Tata Steel’s UK operations continued to face challenges, with a widened EBITDA loss of Rs 1,589 crore, reflecting the ongoing restructuring efforts. However, its Netherlands operations showed signs of recovery, reporting a positive EBITDA of Rs 243 crore, compared to a loss last year.

While Tata Steel’s performance in India remains under pressure from cheap imports, the company continues to focus on expansion and cost efficiencies to mitigate challenges.