Cost Reduction, Higher Prices Key Monitorables for Tata Steel

Tata Steel's consolidated Ebitda (earnings before interest, taxes, depreciation and amortisation) at ₹6,560 crore for the fourth quarter of financial year 2024-25 (Q4FY25) declined 0.6 per cent year-on-year (Y-o-Y) but improved 11.1 per cent on a quarter-on-quarter (Q-o-Q) basis.

- Devangshu Datta

Standalone Ebitda at ₹6,980 crore shrunk by 13.6 per cent Y-o-Y and 6.9 per cent Q-o-Q, impacted by lower steel realisation, partly offset by higher volumes. The good news was better performance from the Netherlands operations.

Standalone blended realisation at ₹60,591 per tonne was lower by 8.7 per cent Y-o-Y and 0.8 per cent Q-o-Q.

Standalone Ebitda per tonne at ₹12,463 was lower by 16.4 per cent Y-o-Y and 12.1 per cent Q-o-Q. The Q3FY25 Ebitda had benefited by ₹1,400 crore from a reversal of regulatory provision.

Management expects domestic Q1FY26 steel prices to improve by ₹3,000 per tonne aided by safeguard duties and also coking coal consumption costs to decline by $10 per tonne sequentially.

Tata Steel Netherlands reported an Ebitda of ₹120 crore (vis-à-vis an Ebitda loss of ₹1 crore in Q3FY25) while Tata Steel UK reported an Ebitda loss of ₹870 crore (vis-à-vis a loss of ₹740 crore in Q3FY25).