Tata steel stock hits an all-time high after strong production and delivery numbers

The company achieved its highest ever annual crude steel production of 20.8 MT in FY24. This represents a 4% increase YoY driven by unlocking initiatives across various sites and strong production at Neelachal Ispat Nigam. Deliveries for FY24 also reached a new high of 19.9 MT, reflecting a 5.6% YoY growth.

This was the primary reason for the strong market performance of the company. The stock closed 1.5% higher at ₹164.90 on the NSE on Monday. The company's market capitalisation also crossed ₹2.05 lakh crore.

In Q3FY24, Tata Steel witnessed a positive turnaround in profitability. The company reported a consolidated net profit of ₹522 crore, reversing losses incurred in both the preceding quarter and the corresponding period of the previous financial year. Despite a 3% YoY decline in consolidated sales to ₹55,312 crore, Tata Steel's profitability improved significantly.

This positive shift was mainly due to a substantial increase in earnings before interest, tax, depreciation, and amortisation (EBITDA). Compared to Q3FY23, EBITDA surged by more than 50% to ₹6,334 crore, indicating improved operational efficiency and cost management strategies.