Tata Steel reports 65% decline in Q4 PAT, stock down nearly 3%, declared dividend of ₹3.60 per equity share

The company’s earnings before interest, tax, depreciation, and amortisation (EBITDA) fell 8.22% YoY to ₹6,631 crore during the quarter. Tata Steel’s production increased marginally to 7.92 million tonnes in Q4FY24 as compared to 7.8 million tonnes in Q4FY23.

For the full fiscal year 2024, Tata Steel reported a net loss of ₹4,910 crore as compared to a net profit of ₹8,075 crore in the previous fiscal. Revenue from operations declined 6% to ₹2.29 lakh crore during the year while EBITDA fell 28.43% to ₹23,402 crore.

There was an exceptional items loss of ₹7,814 crore in FY24 which primarily related to the impairment of heavy-end assets and restructuring costs relating to the UK. The firm stated that it decided to proceed with the proposed restructuring of heavy-end UK assets and transition to greener steel-making after due consideration of all the options over the last seven months in consultation with union representatives.

Koushik Chatterjee, Executive Director and Chief Financial Officer said the firm has been carefully considering the alternative proposal from the representative body of the UK trade unions and concluded that maintaining one blast furnace till the transition would have incurred at least £1.6 billion of additional costs, created significant operational and safety risk, and delayed the electric arc furnace (EAF) by two years.

“We have therefore discussed with the Unions and concluded national level consultation on the asset plan. We will proceed with our proposal to shut down heavy-end assets this year, and set up the EAF by 2027. This is a difficult period of change for our people and we will do our utmost to support the affected employees,” he said.

The board of directors recommended a dividend of ₹3.60 per equity share.

Shares of the firm have risen over 21% since the beginning of the year. The stock has gained over 58% in the last one year.