Tata Steel announced a significant 64% decrease in fourth-quarter profit, down to Rs 611.48 crore, primarily due to lower steel realizations and challenges in its international operations. This marks a sharp decline from the net profit of Rs 1,704.86 crore reported in the same quarter last year.
The consolidated revenue from operations during the January-March quarter also declined by 6.7% to Rs 58,687.3 crore, compared to Rs 62,961.5 crore in the previous year, as stated in a regulatory filing.
Analysts had projected a 50% year-on-year drop in Q4 net profit to Rs 874 crore, with revenue expected to fall 7% year-on-year to Rs 58,489.60 crore, according to a Moneycontrol poll.
However, on a sequential basis, Tata Steel saw a positive trend, with consolidated revenue from operations increasing by 6% from the previous quarter and net profit rising by 19%.
The company’s leaders agreed to borrow more money by issuing debt securities worth Rs 3,000 crore in the form of NCDs (Non-convertible debentures) to private investors. Also, Tata Steel intends to put in up to $2.11 billion (Rs 17,407.50 crore) into its own subsidiary T Steel Holdings (TSHP) in Singapore. This money will help pay off debts and cover the costs of restructuring Tata Steel’s operations in the UK.
