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Tata Steel’s consolidated net profit in Q4 of FY25 doubled to ₹1,201 crore due to improved cost efficiencies, lower raw material costs and higher other income. In the same period last year, the company had posted a net profit of ₹555 crore.
Revenue stood at ₹56,218 crore. While it was 5 per cent higher on a quarter-on-quarter basis due to improved volume, it dipped 4 per cent on a year-on-year basis, on lower realisations in geographies such as the UK and the Netherlands.
Adjusted EBITDA dropped over 6 per cent to ₹6,503 crore and adjusted EBITDA per tonne came lower by 10.5 per cent to ₹7,810.
A 9.4 per cent decline in raw material expenses due to lower coking coal costs helped the company. The fourth quarter result was also aided by higher other income and lower tax outgo compared to the same period last year.
Cost savings
“We are focused on cost take-outs to enhance competitiveness and have already achieved ₹6,600 crore during the year vs FY24,” said Executive Director and Chief Financial Officer, Koushik Chatterjee.
While the company is scaling up its production in India with capacity expansion at Kalinganagar, it is also undertaking cost savings through efficiency programmes. Tata Steel is targeting cost savings of ₹11,500 crore in FY26, which is around 45 per cent of the consolidated EBITDA of FY25.
The company’s Netherlands operations saw an improvement in deliveries, revenue and EBITDA in the quarter while its UK business saw a decline in the same parameters.
“The quarter-on-quarter improvement in profitability at the Netherlands includes efforts to reduce controllable costs while a transformation programme to restore long-term competitiveness has been launched in April,” said Tata Steel CEO and Managing Director, TV Narendran.
The company also announced ₹21,410- crore fund infusion in its wholly-owned subsidiary T Steel Holdings. The funds will be used for debt repayment and support business operations among others.
Published on May 12, 2025
This article first appeared on The Hindu Business Line
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