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Revenue
₹55,312 Cr
verified against source
Revenue YoY
—
reported change
EBITDA
₹6,334 Cr
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Tata Steel's Q3 FY24 consolidated revenue stood at INR 55,312 crore with EBITDA of INR 6,334 crore, yielding an 11% EBITDA margin, up 300 bps QoQ. India standalone EBITDA margin improved to 24% (+400 bps QoQ) driven by higher realizations and cost controls, while Netherlands and UK continued to bleed due to operational issues and weak spreads. Management guided for India realizations to be ~INR 1,000 lower QoQ in Q4 and coking coal costs ~$10 higher. The UK restructuring plan involves phased closure of blast furnaces in 2024, transitioning to an EAF by 2027 with GBP 1.25 billion investment (GBP 500 million government support). Key risks include execution of UK transition, volatile coking coal costs, and potential Chinese steel export surge.
Colored figures show movement against the previous available record.
Guidance to track
- Management guided for a sequential decline in net realizations in India for Q4 FY24.
- Coking coal cost on consumption basis expected to increase by about $10 per ton in Q4.
- Management expects to significantly reduce UK losses next year, targeting a 50% reduction.
- Management expects Netherlands operations to turn EBITDA positive next financial year.
Risks flagged
- Phased closure of blast furnaces and transition to EAF by 2027 faces execution challenges, including union negotiations and grid infrastructure.
- Coking coal costs are expected to rise $10 QoQ in Q4, and further increases could pressure margins.
- High Chinese steel exports could depress global prices and impact Tata Steel's realizations.
- Despite BF6 restart, Netherlands may take time to return to profitability due to lagging contract prices and CO2 costs.
Key quotes
- We have now proposed to close both the high emission blast furnaces and coke ovens in a phased manner in 2024, and will commence the statutory consultation process about restructuring as we transition to a EAF-based steelmaking at a cost of about GBP 1.25 billion, with GBP 500 million support from the U.K. government.
- The demand has been quite strong actually. As you saw year to date, the steel consumption in India has grown at about 10%-12%. So demand has been strong. Pricing has not reflected that robustness of demand so far.
- We are also undertaking a deep transformation program in terms of improvement in our cost position, not just by the volume, but multiple areas, and I think that will also start flowing in, if I look at on a full year basis next year.
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