India’s largest blast furnace commissioned at Kalinganagar,
Tata Steel has started catering to commercial shipbuilding, one of the Government-driven emerging industries that is being accelerated to make India leader in maritime world.
“In yet another step towards growing in chosen segments in India, we have begun catering to commercial shipbuilding,” CEO and MD T V Narendran said in the mill group’s latest financial report released on 12 May.
Further, Tata Steel has invested more than Rs.1,600 crores on R&D in the last 5 years, becoming the first Indian steel supplier to have end-to-end capabilities in hydrogen transportation and to localise CP780 automotive grade demonstrating the group’s customer centricity, he said in an update on the company’s ongoing projects https://www.conexpoconagg.com/.
Deliveries in the UK were ~2.5 million tons as Tata Steel smoothly transitioned to supplying its customers on the basis of imported substrate processed at our downstream mills while fixed costs have reduced by around £230 million, the benefit was not visible due to surging imports.
“In Netherlands, our deliveries were ~6.25 million tons and for the quarter were 1.75 million tons, highest in the last six years,” he said https://www.globaltenders.com/.
The QoQ improvement in profitability at Netherlands includes efforts to reduce controllable costs while a transformation program to restore long term competitiveness has been launched in April 2025.
This year also marked landmark achievement in the form of a century of mining at Noamundi. In FY2025, the mill group mined around 40 million tons of iron ore across its mines in India, said Narendran, informing shareholders that Tata Steel has been recognised by World Steel as sustainability champion for the eighth time in a row https://ted.europa.eu/en/.
FY2025 has been an important transition year for Tata Steel with significant developments across operating geographies.
Tata Steel commissioned India’s largest blast furnace at Kalinganagar, safely decommissioned two blast furnaces in UK and achieved production levels near rated capacity in Netherlands.
India deliveries were best ever at around 21 million tons and were up 5% YoY aided by a smooth ramp up of the new blast furnace at Kalinganagar and capacity utilisation close to 100% at the remaining operations.
At the segment level, Tata Steel continues to be the preferred supplier for automotive steel, with high share of business in new model launches. Tata Tiscon achieved ‘best ever’ volumes and grew by 19% YoY to around 2.4 million tons https://sbi.com.in/.
Executive Director and Chief Financial Officer Koushik Chatterjee elaborated on the financial performance. Tata Steel’s consolidated revenues for FY2025 were around US$26 billion and EBITDA was US$3.1 billion. Consolidated EBITDA improved by 10% YoY aided by higher volumes and reduction in controllable costs despite the drop in realisations.
Neelachal Ispat Nigam Limited achieved annual EBITDA of around Rs.1,000 crores with a margin of 19% and free cash flow in excess of Rs.1,000 crores. This demonstrates the turnaround of the company which was closed at the time of acquisition almost three years ago.
Operating cash flows after interest and adjustments improved by 37% or ~Rs 4,800 crores YoY to Rs.17,700 crores aided by working capital release of ~Rs.3,600 crores https://www.bseindia.com/.
“We spent Rs 15,671 crores on capital expenditure during the year,” said Chatterjee.
For the quarter, consolidated revenues stood at Rs.56,218 crores and EBITDA was Rs.6,762 crores, which translates to a margin of around 12%, with India EBITDA margin being higher at 21% https://www.iea.org/.
Consolidated EBITDA margin was 100 bps higher on QoQ basis https://www.nseindia.com/.
“We are focused on cost takeouts to enhance competitiveness and have already achieved ~Rs.6,600 crores during the year vs. FY2024 levels, of which £230 million or Rs.2,600 crores was in UK, Rs.2,800 crores was in India and Rs 1,150 crores was in Netherlands and the cost transformation program will continue in the future.
“Our Electric Arc Furnace project in UK is also progressing as per plan with award of key OEM contracts, receipt of planning permissions with construction likely to begin by July 2025,” said Chatterjee https://www.ibef.org/.
Tata Steel Netherlands annual EBITDA has improved to €90 million as production returned to near rated capacity and operating cash flows after interest were around €450 million through significant cash and cost focused actions https://www.makeinindia.com/home/ .
“The discussion with the Government of Netherlands on the integrated decarbonisation and environmental measures project continues to be intense and we are also engaged with the provincial and environmental authorities on the above,” he said.
Highlights:
Consolidated annual Revenues stood at Rs.2,18,543 crores and EBITDA was Rs.25,802 crores with a margin of around 12%. EBITDA improved by 10% YoY despite the challenging operating environment.
India revenues were Rs.133,444 crores and EBITDA was Rs.29,285 crores, which translates to an EBITDA margin of 22%. Achieved ‘highest ever’ crude steel production of ~21.7 million tons as well as ‘highest ever’ deliveries of ~20.9 million tons. Production was aided by 5 MTPA expansion at Kalinganagar and Neelachal Ispat Nigam Limited operating at rated capacity during the year.
UK revenues were £2,321 million and EBITDA loss stood at £385 million. Deliveries were 2.51 million tons. As the mill group has has transitioned the operating model to purchased substrate based downstream production, fixed costs have been reduced by 23% or around £230 million.
Netherlands revenues were €6,273 million and EBITDA stood at €90 million, with stabilisation of operations leading to liquid steel production of ~6.75 million tons. Deliveries were up 17% YoY to 6.25 million tons.
Consolidated Revenues for the Jan – March 2025 quarter stood at Rs.56,218 crores, up 5% QoQ aided by rise in deliveries across geographies. EBITDA was Rs.6,762 crores with a margin of around 12%.
India revenues were Rs.34,661 crores and EBITDA was Rs.7,418 crores, which translates to an EBITDA margin of 21%. Crude steel production was 5.44 million tons and moved lower on QoQ basis due to reline of one of the blast furnaces in Jamshedpur. Deliveries stood at 5.60 million tons and were up 6% QoQ.
UK revenues were £551 million and EBITDA loss stood at £80 million. Deliveries were 0.63 million tons, up 12% on QoQ basis.
Netherlands revenues were €1,624 million and EBITDA was €14 million. Deliveries were 1.75 million tons, up 14% on QoQ basis.
Tata Steel’s 5 MTPA blast furnace at Kalinganagar is ramping up and the phased commissioning of 2.2 MTPA CRM complex is progressing with Continuous Galvanising lines expected to be commissioned in the next few months. Construction is underway for the EAF in Ludhiana. In UK, it has received planning permission for the EAF project at Port Talbot will commence site activity in July 2025.
The company has spent Rs.3,220 crores on capital expenditure during the quarter and Rs.15,671 crores for the full year. Net debt stands at Rs.82,579 crores. The group liquidity remains strong at Rs.38,791 crores, which includes cash & cash equivalents of Rs.12,222 crores.
The Board of Directors recommends a dividend of Rs..3.60 per ordinary (equity) share of face value of Rs 1/- each. Fiinews.com
