Tata Steel reports a 43% decline in Q3 net profit

Tata Steel Q3 results: Earnings fall 3% to Rs 53,648 crore.

Tata Steel Ltd announced a 43% year-on-year decline in net profit for the quarter ending December 31, 2024, posting a profit of Rs 295 crore compared to Rs 522 crore in the same period last year.

The decline comes despite the company achieving its best-ever delivery volumes for a December quarter.

Key Financial Highlights

• Revenue from Operations:
  • Rs 53,648 crore in Q3FY25, a 3% decline from Rs 55,312 crore in Q3FY24.
  • Marginally higher than the analysts’ projection of Rs 52,846 crore (Moneycontrol poll).
• Net Profit:
  • Declined significantly to Rs 295 crore, though better than the projected loss of Rs 371 crore for the quarter.

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Operational Performance

• India Operations:
  • Delivery volumes reached 5.29 million tonnes, an 8% increase year-on-year and a 4% rise over the previous quarter.
  • Growth attributed to steady domestic demand and a strategic focus on exports.

Market Reaction

Following the earnings announcement, Tata Steel’s shares on the National Stock Exchange closed 2.5% lower at Rs 126.55 per share on January 27, 2025.

Despite the dip in net profit, Tata Steel’s strong operational performance underscores resilience amidst challenging market conditions, driven by robust domestic demand and strategic export initiatives.