1 month ago
Tata Steel Q1 Profit Up 12% Amid European Headwinds
Tata Steel, a big steel company in India, made more money in the first quarter of 2024 than it did a year earlier, but it still earned less than analysts expected.
The company earned ₹2,318 crore and sold steel worth ₹60,794 crore.
It had some problems in Europe, especially in the Netherlands, where rules and a plant shutdown hurt its profits.
In India, the company had to pause some plants for maintenance, but higher steel prices helped keep its earnings strong.
Tata Steel plans to spend a lot of money to grow its factories and make more steel in the future.
Net profit rose 12% YoY to ₹2,318.35 crore, missing Bloomberg’s ₹2,501 crore estimate.
Revenue climbed 14% YoY to ₹60,794 crore; EBITDA grew 25% to ₹9,370 crore.
European operations, especially in the Netherlands, faced regulatory and operational disruptions, hurting profitability.
Domestic production fell due to maintenance shutdowns, but higher steel prices and a richer product mix preserved margins.
The company approved ₹33,873 crore capital expenditure for capacity expansion at Neelachal Ispat Nigam Limited.
- Who
- Tata Steel Ltd, CEO T.V. Narendran, CFO Koushik Chatterjee, analyst Suman Kumar
- What
- First‑quarter 2024 financial results and operational challenges
- Where
- India, Netherlands, United Kingdom
- When
- April–June 2024
- Why
- European regulatory issues, West Asia supply‑chain disruptions, higher input costs, and maintenance shutdowns
Key facts
- Net profit
- ₹2,318.35 crore
- Revenue
- ₹60,794 crore
- EBITDA
- ₹9,370 crore
- Capital expenditure
- ₹33,873 crore
- Consensus estimate
- ₹2,501 crore
Quotes
Koushik Chatterjee
Executive Director and Chief Financial Officer of Tata Steel
“The global operating environment remained complex, with the impact of developments in West Asia on supply chains and input costs being more pronounced in the quarter. Our overseas operations also had to navigate operational disruptions.”
livemint.com
“Strong profitability in India helped offset the impact of higher input costs stemming from the Iran-West Asia conflict and weakness in Europe.”
livemint.com
Sources
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