TATASTEEL · Metals & Mining
Tata Steel Ltd. reported revenue of ₹54,771 cr for April to June 2024, −7.9% on the year and −6.7% on the quarter.
Operating profit (EBITDA) was ₹6,694 cr, a margin of 12.2%, +398 bps on the year and +97 bps on the quarter. Operating costs grew −11.9% against revenue growth of −7.9%, so more of each rupee of sales reached operating profit.
Net profit was ₹919 cr, +75.0% on the year and +65.6% on the quarter, with earnings per share of ₹0.77. Profit before other income, one-offs and tax grew faster, at +258.3%; other income, one-offs or tax held the headline back.
Metal margins move with the spread between product prices and coal and ore costs, so large quarterly swings are normal here and say more about prices than about the business. The quarterly statements do not carry volumes, realisation per tonne and the cost of coal and ore; those come with the filing read.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow, the auditor's review, segment results, one-off items line by line and what management said on the call.
A lower tax rate lifted profit. Is the lower rate going to last?
Effective tax rate 61.0% against 71.3% over the previous quarters, worth about ₹246 cr of profit.
Source: Quarterly statements
Core profit grew faster than reported profit: one-offs held the headline down.
Reported profit +75.0% on the year; profit before other income, exceptional items and tax +258.3%.
Source: Quarterly statements
Margin rose sharply on flat revenue. Which cost fell, and will it stay down?
EBITDA margin 12.2%, +398 bps on the year (+97 bps on the quarter).
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹55,682 cr | ₹55,312 cr | ₹58,687 cr | ₹54,771 cr | ₹53,905 cr | ₹53,648 cr | ₹56,218 cr | ₹53,178 cr | ₹58,689 cr | ₹57,002 cr | ₹63,270 cr | ₹60,794 cr |
| YoY | — | — | — | −8% | −3% | −3% | −4% | −3% | +9% | +6% | +13% | +14% |
| EBITDA margin | 7.7% | 11.3% | 11.2% | 12.2% | 11.3% | 11.0% | 11.7% | 14.0% | 15.2% | 14.4% | 15.5% | 15.2% |
| Other income, % of PBT | — | −2% | −21% | −0% | 29% | 8% | 7% | 8% | −0% | 12% | 1% | −0% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | — | 73% | 69% | 61% | 65% | — | 45% | 35% | 25% | 29% | 38% | 38% |
| Net profit | −₹6,511 cr | ₹522 cr | ₹555 cr | ₹919 cr | ₹759 cr | ₹295 cr | ₹1,201 cr | ₹2,007 cr | ₹3,183 cr | ₹2,730 cr | ₹2,965 cr | ₹2,385 cr |
| YoY | — | — | — | +75% | — | −43% | +116% | +118% | +319% | +825% | +147% | +19% |
| Core profit YoY | — | — | — | +258% | — | −22% | −6% | +19% | +173% | +122% | +132% | +36% |
| EPS | −₹5.07 | ₹0.42 | ₹0.49 | ₹0.77 | ₹0.67 | ₹0.26 | ₹1.04 | ₹1.66 | ₹2.48 | ₹2.15 | ₹2.34 | ₹1.86 |
| Flags | · | · | · | 1 | ✓ | ✓ | 2 | 2 | 2 | 1 | ✓ | ✓ |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Tata Steel Ltd. reported revenue of ₹54,771 cr (−7.9% on the year) and net profit of ₹919 cr (+75.0% on the year) for April to June 2024.
Profit before other income, exceptional items and tax moved +258.3% on the year, against +75.0% for reported profit.
1 check raised a question: A lower tax rate lifted profit. Is the lower rate going to last?
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