Tata Steel Ltd's Q3FY25 Quarter Results
- 28 Jan 2025
Result Summary
- Tata Steel Ltd reported a 1.2% quarter-on-quarter (QoQ) decrease in its consolidated revenues for the quarter-ended Dec (Q3FY25). On a year-on-year (YoY) basis, it witnessed a decline of 3.0%.
- Its expenses for the quarter were down by 0.4% QoQ and 2.3% YoY.
- The net profit decreased 61.1% QoQ and decreased 43.4% YoY.
- The earnings per share (EPS) of Tata Steel Ltd stood at 0.3 during Q3FY25.
Financial Statments for Q3FY25
| (₹ crores) | Q3FY25 | Q2FY25 | Q3FY24 | QoQ (%) | YoY (%) |
|---|---|---|---|---|---|
Total Income | 53869.33 | 54503.30 | 55539.77 | -1.2% | -3.0% |
Total Expenses | 52118.09 | 52331.58 | 53351.13 | -0.4% | -2.3% |
Profit Before Tax | 1625.05 | 2189.81 | 1854.51 | -25.8% | -12.4% |
Tax | 1376.54 | 1405.49 | 1405.77 | -2.1% | -2.1% |
Profit After Tax | 295.49 | 758.84 | 522.14 | -61.1% | -43.4% |
Earnings Per Share | 0.30 | 0.70 | 0.40 | -57.1% | -25.0% |
Data Source: BSE, Company announcements The securities quoted are exemplary and are not recommendatory. Past performance is not indicative of future results
Company Overview
Tata Steel Ltd, a part of the Tata Group conglomerate, is one of the world's largest steel manufacturers. The company operates in the steel manufacturing industry and offers a wide range of steel products, including hot and cold rolled coils, galvanized sheets, tubes, rods, and other long products. Tata Steel has a significant presence in both domestic and international markets, with operations spanning across Asia, Europe, and other regions. The company is known for its integrated steel production facilities, which include mining, processing, and distribution capabilities. As of the latest information available, no specific recent major developments are highlighted; however, Tata Steel is typically engaged in activities aimed at enhancing production efficiency and expanding its product portfolio.
Revenue
In the third quarter of fiscal year 2025 (Q3FY25), Tata Steel Ltd reported a total income of ₹53,869.33 crores. This represents a decrease of 1.2% compared to the previous quarter (Q2FY25), where the total income was ₹54,503.30 crores. When compared to the same quarter in the previous fiscal year (Q3FY24), there is a more pronounced decline in total income, amounting to 3.0%, as the income stood at ₹55,539.77 crores during that period. These figures indicate a contraction in revenue both on a quarterly and yearly basis. The company's ability to generate revenue appears to be challenged across the short and long term, as reflected in the decrease in total income over these periods.
Profitability
For the quarter ending Q3FY25, Tata Steel Ltd recorded a profit before tax (PBT) of ₹1,625.05 crores. This shows a considerable reduction of 25.8% from the previous quarter (Q2FY25), where the PBT was ₹2,189.81 crores. Year-over-year, the PBT declined by 12.4% from ₹1,854.51 crores in Q3FY24. The company's tax expenses for Q3FY25 were ₹1,376.54 crores, slightly reduced by 2.1% from both the preceding quarter and the same quarter last year. Consequently, the profit after tax (PAT) for Q3FY25 was ₹295.49 crores, which is a significant decline of 61.1% quarter-over-quarter and 43.4% year-over-year. This substantial drop in profitability is further reflected in the earnings per share (EPS), which decreased to ₹0.30 in Q3FY25 from ₹0.70 in Q2FY25 and ₹0.40 in Q3FY24, showing a reduction of 57.1% QoQ and 25.0% YoY.
Operating Metrics
Tata Steel Ltd's total expenses for Q3FY25 amounted to ₹52,118.09 crores, marking a slight decrease of 0.4% from Q2FY25 expenses of ₹52,331.58 crores. Compared to Q3FY24, where total expenses were ₹53,351.13 crores, there is a 2.3% reduction. These figures suggest a consistent effort to manage and reduce operational costs over recent quarters and on an annual basis. However, despite the decrease in expenses, the company's profitability metrics, including PBT and PAT, have shown significant declines, indicating potential pressures on margin or sales volume. The financial ratios such as the P/E ratio, debt-to-equity ratio, and current ratio are not provided in the data, so calculations for these cannot be made. Overall, the operating metrics reflect a trend of decreasing expenses but also highlight challenges in maintaining profitability amid changing revenue figures.
