Tata Steel Q1 highlight: PAT falls, consolidated revenues reach ₹59,490 crores

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Tata Steel reported consolidated revenues of ₹59,490 crores for the quarter, with an EBITDA of ₹6,122 crores and an EBITDA margin of 10%. The Profit after Tax stood at ₹525 crores, impacted by non-cash deferred tax charge related to the buy-in transaction at British Steel Pension Scheme, successfully derisking Tata Steel UK. During the quarter, the company invested ₹4,089 crores in capital expenditure, focusing on projects like the 5 MTPA expansion at Kalinganagar and the 0.75 MTPA EAF mill in Punjab.

India's revenues were ₹34,901 crores, and EBITDA was ₹7,514 crores, driven by an increase in domestic deliveries and improvements in key end-use segments. Crude steel production in India was around 5 million tons, up 2% YoY, primarily due to ramp-up at Neelachal Ispat Nigam Limited. However, Europe's revenues were £2,083 million, and EBITDA loss stood at £153 million.

This was impacted by the planned relining of BF6 at Tata Steel Netherlands, leading to a drop in crude steel production. The company's financial performance showed mixed results in different regions, with a focus on strategic investments and de-risking measures. Tata Steel Kalinganagar is expanding its capacity by 5 MTPA.

The expansion will include the construction of the largest blast furnace in India, with a capacity of 5,870 cubic meters. The expansion will also include the installation of eco-friendly technologies, such as top combustion stoves, dry gas cleaning plants, evaporative cooling systems, and top gas recovery turbines. The expanded plant will produce value-added products, such as high-tensile steel and advanced steel, to meet the needs of the lightweighting, safety, infrastructure, and energy sectors.