Tata Steel Q1 Results: Profit Misses Estimates On Exceptional Item

Tata Steel Ltd.'s consolidated net profit rose 75% in the June quarter of fiscal 2025, but missed analysts' estimates as exceptional items weighed.

The steel manufacturing company posted a profit of Rs 918.6 crore in the first quarter, according to an exchange filing on Wednesday. This compares with the Rs 1,215.4-crore consensus estimate of analysts polled by Bloomberg.

The company reported an exceptional loss of Rs 357.93 crore, owing to restructuring and other provisions, and contribution to electoral trusts.

• Revenue down 7.9% to Rs 54,771.4 crore versus Rs 59,489.7 crore (Bloomberg estimate: Rs 56,339.7 crore).

• Net profit up 75% to Rs 918.6 crore versus Rs 524.8 crore (Estimate: Rs 1,215.4 crore).

• Ebitda up 29% to Rs 6,694.5 crore versus Rs 5,173.9 crore (Estimate: Rs 6,379.9 crore).

• Ebitda margin at 12.1% versus 8.7% (Estimate: 11.3%).

In India, Tata Steel's crude steel production was up 5% year-on-year at around 5.3 million tonne. Deliveries stood at around 4.9 million tonne and saw a 4% year-on-year uptick in domestic markets.

Among business verticals, automotive witnessed 9% growth, aided by higher than market growth in select sub-segments, the company said.

Tata Steel continues to expand its footprint via new dealer appointments, e-commerce portals and influencers.

The company's 5 MTPA expansion project at Kalinganagar is on track, and the blast furnace is expected to start in September. Additionally, the commissioning activities for Continuous Annealing Line of the 2.2 MTPA CRM complex at Kalinganagar are progressing well for start in August.

In the UK, the company has safely ceased operations at one of the blast furnaces at Port Talbot and is on track to close the remaining blast furnace by September.

Shares of Tata Steel closed 0.79% higher at Rs 165.35 apiece, as compared to a 0.35% advance in the benchmark BSE Sensex. The results were announced after market hours.