Tata Steel Q2 results on November 6: Tata Group firm likely to post net loss of ₹153 crore, here’s what to expect

In a stock exchange notification last week, Tata Steel informed the bourses that a Board meeting would be held on Wednesday, November 6, to consider and approve the audited standalone and unaudited consolidated financial results of the company for the three-month and half-year period ended September 30, 2024.

Experts predict Tata Steel might post a consolidated loss in the September quarter due to falling price realisations, both at the domestic and international levels. Rising costs for its operations in India and the European regions may also affect profitability in the second quarter of the current fiscal.

Revenue may post only a slight increase or decrease for Q2 FY25 as lower steel prices would eat into the growth in sales volumes.

According to estimates, Tata Steel may post adjusted net loss in the range of ₹112.9 crore to ₹153.1 crore for the September 2024 quarter. This compares to the consolidated net loss of ₹6,196.24 crore that the company posted in the year-ago quarter (Q2 FY24) on account of impairment and restructuring costs of over ₹6,000 crore in the United Kingdom.

Tata Steel’s revenue in Q2 FY25 is estimated in the range of ₹53,319.4 crore to ₹55,863.6 crore. This is almost flat compared to the revenue of ₹55,682 crore seen in the year-ago quarter.

Business update

For Q2 FY25, Tata Steel had earlier said that its crude steel production in India stood at 5.27 million tonnes, marking an increase from 5.02 million tonnes in the year-ago period.

Delivery volumes for Tata Steel India rose 5% to 5.1 million tonnes in the September quarter compared with 4.82 million tonnes a year ago.

On a half-yearly basis, Tata Steel India’s crude steel production rose 5% year-on-year to 10.53 million tonnes, while deliveries rose by 4% to 10.04 million tonnes.

Q1 FY25 performance

In the previous quarter ended June 2024 (Q1FY25), Tata Steel had reported a 51.4% jump in consolidated net profit to ₹959.61 crore compared with ₹633.95 crore in the year-ago quarter.

The sharp jump in net profit was on account of the Netherlands business going back to normal operating levels along with overall lower expenses and lower raw material costs.

Tata Steel’s total consolidated revenue in Q1 FY25 was ₹54,771.39 crore, down 7.9% year-on-year.

Tata Steel share price

Reflecting investors’ optimism, Tata Steel’s share price jumped as much as 3.76% to hit an intra-day high of ₹152.48 apiece on the National Stock Exchange of India (NSE) on Tuesday, just a day before the earnings announcement.

Shares of Tata Steel were trading 3.5% higher at ₹152.1 apiece on the NSE at 2:55 pm.