Tata Steel MD TV Narendran said that India’s deliveries make up 68% of total deliveries and will continue to rise.
Tata Steel India faced a challenging fourth quarter, with profits falling by 5 percent to Rs 8,190.23 crore.
This decline was attributed to poor pricing of steel products, exacerbated by intense competition and an influx of cheap imports, notably from China. In comparison, the segment had reported a profit of Rs 8,642.05 crore in the same quarter the previous year.
Revenue Decline Amidst Competitive Landscape
Consolidated revenue from India operations witnessed a decrease from Rs 38,048.1 crore to Rs 36,634.8 crore. For the entire fiscal year 2024, the segment recorded consolidated revenue of Rs 1.41 lakh crore, indicating a 1.3 percent decline compared to the previous year.
Despite the challenges, domestic deliveries increased by 9 percent year-on-year, driven by growing demand for steel in India.
Positive Growth Signals and Expansion Plans
Despite the overall decline, there were some positive signs, with domestic deliveries increasing by 5 percent year-on-year to 5.42 million tons in the fourth quarter. This growth was attributed to the rising demand for steel in India.
TV Narendran, Chief Executive Officer & Managing Director, highlighted that India deliveries now constitute 68 percent of total deliveries and are expected to continue growing, particularly with the incremental volumes from the 5 MTPA capacity expansion at Kalinganagar.
Tata Steel’s Overall Performance
Tata Steel reported a significant 64 percent decline in fourth-quarter profit attributable to owners, amounting to Rs 611.48 crore, primarily due to lower steel realizations and poor performance in international operations.
Consolidated revenue from operations for the Tata Group company also fell by 6.7 percent to Rs 58,687.3 crore compared to the same period the previous year.
Navigating a Competitive Landscape
The challenges faced by Tata Steel underscore the competitive pressures within the steel industry, both domestically and internationally.
The company remains focused on leveraging growth opportunities in the Indian market while addressing the complexities of global competition and market dynamics.
