Prime Highlights:

Tata Steel Q4 FY25 consolidated net profit has increased more than two-fold to ₹1,301 crore, 113% YoY.

Board declared a dividend of ₹3.60 per equity share, pending shareholders’ approval.

Key Facts:

Q4 FY25 revenue at ₹56,218 crore, down 4.2% YoY.

FY25 net profit at ₹3,173 crore, reversing FY24 loss of ₹4,910 crore.

Key Background:

The group Q4 FY25 net profit of Tata Steel was ₹1,300.81 crore, a little over double its ₹611.48 crore in Q4 FY24. The company’s performance was driven by a spectacular fall in input costs, or coking coal and iron ore, the two critical raw materials for producing steel. The company also informed that the total expenditure declined by 4.1%, to ₹541.68 billion, and of the expenditure on material declined by 18.5%. Quarter revenues decreased by 4.2% and missed targets by ₹56,218 crore.

For the whole FY2025, Tata Steel made a net profit of ₹3,173.78 crore, a tidy reversal of a net loss of ₹4,909.61 crore in FY24. Operating revenue was ₹2,18,542.5 crore, 4.6% lower than the ₹2,29,170.78 crore of the previous fiscal year. Revenues fell but the company had a stunning change of fortune in profitability due to improved operating efficiency and effective cost-cutting.

Company board of directors is recommending a dividend of ₹3.60 per equity share for each financial year FY25, to be proposed to the shareholders with their approval to be ascertained through a poll at the Annual General Meeting of July 2025. Payment of dividend is the cost incurred by the company to provide reward to the shareholders in the adverse market condition.

Tata Steel’s FY25 operational performance also remained in the plus territory at an all-time high of 21 million tonnes of India dispatches, a year-on-year growth of 5%. It was supported by ramp-up excellence in the new Kalinganagar blast furnace and record-breaking utilisation at others. It achieved the milestone of being the first Indian steel plant to export high-strength grade hot-rolled CP780 for the automotive industry.

For the future, Tata Steel board sanctioned an investment total amount of up to $2.11 billion (approximately ₹17,407.50 crore) in holding company subsidiary company firm, T Steel Holdings Pte. Ltd. (TSHP), for repayment of the external debt and financing restructuring cost of Tata Steel UK Limited