Tata Steel shares up 1%: Steel major aims for 15 MT production via recycling in 10-15 years

In FY25, Tata Steel produced 30.92 million tonnes of steel out of its total capacity of 35 million tonnes spread over India, the UK, the Netherlands and Thailand.

"...linearity to circularity is one shift we are making.... You will see in the next 10-15 years, 10-15 million tonnes of Tata Steel's production will be through the recycling route," PTI reported, quoting CEO and MD T V Narendran.

The company aims to scale up its steel making capacity to 40 million tonnes by 2030 in India. In the UK, Tata Steel is in the process of transition towards scrap-based electric arc furnace (EAF) manufacturing from the blast furnace steel making route at its 3 million tonnes per annum (MTPA) plant located at Port Talbot in South Wales.

Narendran further said Tata Steel set up a recycling plant near Delhi a few years back. The 0.75-million tonne recycling-based steelmaking unit being set up in Ludhiana will be ready by the end of this financial year.

"In the UK we've closed the blast furnaces, and we're building an electric arc furnace. In the Netherlands, we are in conversation with the Dutch government to do a similar thing. So, by 2035, we won't have any blast furnaces operating in Europe. So, from producing 10 million tonnes of steel using blast furnaces, we'll be producing 10 million tonnes of steel using alternate process routes such as greener ones," he said.

In the Netherlands, Tata Steel owns a steel manufacturing plant at IJmuiden, which produced an estimated 6.75 MTPA of liquid steel in FY25.

In India, Tata Steel has over 26 million tonnes of steel capacity and 1.7 million tonnes in Thailand.

Tata Steel Q4 FY25 Results

Tata Steel posted over a twofold increase in consolidated net profit to ₹1,200.88 crore in the March quarter, on account of higher income.

It had posted a profit after tax (PAT) of ₹554.56 crore in the January-March period of the preceding 2023-24 fiscal year, the company said in an exchange filing.

The company's total income rose to ₹56,679.11 crore from ₹58,863.22 crore in the year-ago quarter.

Tata Steel reduced expenses to ₹54,167.61 crore from ₹56,496.88 crore in the year-ago period.

The company posted a net profit of ₹3,173.78 crore in FY25. It had reported a loss of ₹4,909.61 crore in the preceding financial year.

The board also recommended a dividend of ₹3.60 per ordinary (equity) share of face value ₹1 each (360%) to the shareholders of the company for FY25.

It further gave a go-ahead to the proposal, under the foreign exchange regulations, to infuse funds up to $2.5 billion (₹21,410.95 crore) by way of subscription to equity shares of T Steel Holdings Pte Ltd (TSHP), a wholly owned foreign subsidiary of the company, in one or more tranches, during the current fiscal year.