Tata Steel has achieved its highest ever Indian steel production, increasing by 4.5% year-on-year to 20.78 million tonnes in the fiscal year ending March 2024 (FY24), Kallanish notes. The company’s consolidated steel production contracted by 2.3% y-o-y to 29.94mt.

Its FY24 India deliveries also reached a record of 19.91mt, compared to 18.85mt a year ago, and consolidated deliveries increased by 2.1% y-o-y to 29.39mt.

Tata Steel’s ceo and managing director, TV Narendran said, “Our domestic deliveries were best ever at around 19 million tonnes and were up 9% y-o-y with broad-based improvement across chosen market segments.”

“Automotive volumes were aided by higher deliveries of hot-rolled and cold-rolled steel to auto OEMs while our well-established retail brand Tata Tiscon crossed 2 million tonnes on an annual basis. We have consistently filed 100+ patents per annum, on average, in the last 5 years,” he continued.

India deliveries comprised 68% of total deliveries and will continue to grow with incremental volumes from the 5 million tonnes/year capacity expansion at Kalinganagar, he added.

The company’s consolidated revenues fell by 5.8% on-year to INR 2.29 trillion ($27.5 billion). The revenues were helped by higher volumes in India. It reported a net loss of INR 49.1 billion, compared to a net profit of INR 80.75 billion in the previous year.

Its India revenues were up marginally by 0.4% y-o-y to INR 1.43 trillion, and net profit was down sharply by 72% on-year to INR 38.47 billion.

Consolidated Ebitda margin was 10%, while India Ebitda margin improved by 200 basis points to 22%. The company blamed a challenging operating environment for its consolidated performance. Narendran noted India is a structurally attractive market, adding, “we have delivered improved margins and continued to expand our footprint in terms of volumes as well as product portfolio.”

The company’s board approved the issuance of non-convertible debentures (NCDs) on a private placement basis, in one or more tranches, for up to INR 30 billion.

Tata Steel also approved a capital infusion of $2.11 billion (INR 174 billion) into its Singapore unit T Steel Holdings (TSHP). TSHP is a wholly owned foreign subsidiary. This investment will be carried out in FY25. This capital infusion will be used by TSHP to help repay existing external debt at offshore entities and to support restructuring costs at Tata Steel UK.

Tata Steel also approved a proposal to convert $565 million of debt held by Tata Steel in TSHP into equity shares in FY25. Tata Steel will continue to hold the converted equity shares in TSHP.