Tata Steel stock tumbles 5% after weak Q4 earnings; should you buy, sell, or hold?
Tata Steel slumped nearly 5% in today's trade to reach ₹165.50 apiece, a day after the company reported Q4 and FY24 numbers. On Wednesday, post market hours, the company reported a 64.59% decline for its Q4 FY24 consolidated net profit to ₹554.56 crore, led by lower steel realisations across geographies.Total revenue from operations fell to 58,687 crore from ₹63,131.08 crore in the same quarter of last year, owing to a nearly 4% drop in its mainstay India business, which contributed at least 62% of the overall revenue.
The revenue from India's business dropped to ₹36,635 crore from ₹38,048 crore in Q4 FY23. Also Read: IPO Boom: 57% of SME issues saw over 100% subscription in 2024Revenue from the Netherlands also dropped to ₹13,908 crore from ₹15,444 crore a year ago, while revenue from the UK also slipped to ₹6,800 crore from ₹7,457 crore in Q4 FY23.
For the full fiscal year, the company's revenue dipped to ₹2,29,171 crore from ₹2,43,353 crore in FY23, while it posted a net loss of ₹4,910 crore in FY24 as compared to a net profit of ₹8,075 crore in FY23. In its investor presentation, the company highlighted the moderation in global steel prices during the January–March 2024 period across key regions.
It said that the US steel prices witnessed a decline of approximately 25%, while prices in the EU and China were down by 6–8%. Despite this, China's steel supply continued to surpass demand, resulting in heightened exports.
Although the price arbitrage between the EU, US, and China narrowed, subdued demand remained a concern.Also Read: Top 5 growth stocks that could continue outperforming the Nifty50In FY2024, Tata Steel India recorded 6% year-on-year growth in deliveries, reaching around 19.9 million tons. Indian deliveries
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