Tata Steel in April-June increased its net profit by 51% y/y

Indian steel producer Tata Steel in the first quarter of the 2024/2025 fiscal year (April-June) increased its consolidated net profit by 51% y/y – up to 9.6 billion rupiah ($115 million), Bloomberg reports.

Revenue in the specified period decreased by 7.9% – to 547.7 billion rupiah. Total spending in April-June fell 11% year-on-year – to 523.9 billion rupees due to lower material costs.

Tata Steel said it continues to focus on growth in India, where annual steel demand is expected to increase to 200 million tonnes by 2030.

According to T. V. Narendran, managing director of Tata Steel, the company has safely shut down blast furnace No. 5 at the plant in Port Talbot (Great Britain), the last blast furnace at the steel plant is scheduled to be closed by September 2024, Mint writes.

The closure of the blast furnaces and related assets was critical to stemming the cash flow at UK businesses, the company’s chief financial officer Kushik Chatterjee said.

«We are working closely with the recently elected UK government to finalize the grant funding process for the new electric arc furnace project,» he said.

Chatterjee also added that the company has started active cooperation with the Dutch government to support the decarbonization project in that country.

As GMK Center reported earlier, Tata Steel increased its consolidated steel production by 12.6% in comparison with the same period in 2023 – to 7.96 million tons in April-June 2024 (the first quarter of the 2024/2025 financial year). Compared to the previous quarter, steel output by divisions of the company increased by 1.4%.