Tepid metal costs within the home market dragged down Tata Metal’s standalone income and revenue for the fourth fiscal quarter, whilst volumes noticed a marginal uptick. A weak present in its European operations additional weighed on the profitability of Asia’s oldest steelmaker.
The steelmaker will infuse $2.5 billion (about ₹21,411 crore) in its Singapore unit T Metal Holdings Pte. Ltd over the course of FY26 for compensation of debt and restructuring prices in subsidiaries, the corporate stated Monday.
The corporate declared a dividend of ₹3.6 per share.
The corporate reported a consolidated revenue of ₹1,201 crore in January-March, greater than doubling from the identical interval final 12 months. This was after losses within the Netherlands and the UK offset the corporate’s worthwhile operations in India.
Tata Metal’s standalone operations in India logged a internet revenue of ₹3,141 crore in the course of the quarter, 19% lower than the identical interval a 12 months in the past on account of decrease metal costs.
Consolidated income for the quarter was 4% decrease year-on-year at ₹56,218 crore. Earnings earlier than curiosity, tax, depreciation and amortization (Ebitda) remained flattish at ₹6,762 crore.
“FY2025 has been an essential transition 12 months for Tata Metal with vital developments throughout working geographies,” stated T.V. Narendran, chief government officer and managing director, Tata Metal. In the course of the 12 months, the corporate commissioned India’s largest blast furnace at Kalinganagar, Odisha, decommissioned two blast furnaces within the UK and achieved manufacturing ranges close to rated capability within the Netherlands, he stated.
Quarterly gross sales in India had been best-ever at round 21 million tonnes, up 5% year-on-year, aided by a ramp-up of the brand new blast furnace at Kalinganagar and capability utilization near 100% on the remaining operations, he stated.
UK operations
Within the UK, the corporate has transitioned to supplying its prospects imported metal, which is processed at its downstream mills at Port Talbot. This has diminished its prices and losses.
The corporate reported an Ebitda lack of ₹873 crore within the UK in the course of the quarter in comparison with a lack of ₹388 crore a 12 months in the past.
“Our Electrical Arc Furnace undertaking in UK can be progressing as per plan with award of key OEM contracts, receipt of planning permissions with building more likely to start by July 2025,” stated Koushik Chatterjee, government director and chief monetary officer, Tata Metal.
Within the Netherlands, the corporate managed to renew manufacturing at full capability after a number of quarters of diminished manufacturing on account of maintenance-related shutdown of a blast furnace. The Dutch operations reported an Ebitda of ₹124 crore in comparison with a ₹296 crore loss a 12 months in the past.
“The dialogue with the Authorities of Netherlands on the built-in decarbonization and environmental measures undertaking continues to be intense and we’re additionally engaged with the provincial and environmental authorities on the above,” Chatterjee stated.
Tata Metal inventory gained 6.16% to shut at ₹151.55 on Monday on the BSE. The benchmark Sensex gained 3.74% in the course of the session after tensions between India and Pakistan eased and amid progress in commerce negotiations between the US and China.
