Q1 2025 Tata Steel Ltd Earnings Call Transcript
Key Points
- Tata Steel Ltd (BOM:500470) achieved its best-ever Q1 sales with deliveries at 4.94 million tonnes, aided by a 4% year-on-year growth in domestic deliveries.
- The company witnessed a 15% year-on-year growth in its retail brand Tata Tiscon, driven by enhanced reach and consumer connect programs.
- Engineering goods registered a 19% year-on-year growth, driven by the best quarterly supplies to railways and an 8% year-on-year growth to the consumer durables industry.
- The company is progressing well on its Kalinganagar expansion, with the blast furnace start-up expected towards the end of September, aiming to produce about 1.7 million tonnes from the new facility.
- Tata Steel Ltd (BOM:500470) has adopted a multipronged approach to sustainability, including process improvement, carbon direct avoidance, and carbon capture and utilization, with significant progress in India and Europe.
- Global steel demand was impacted by subdued economic activity and tight monetary policy conditions, leading to soft steel prices in the US and EU.
- Domestic steel prices in India were stable but declined during the quarter, offsetting earlier increases.
- The company's crude steel production in India saw a 2% quarter-on-quarter decline due to plant maintenance shutdowns.
- Tata Steel UK reported an EBITDA loss of GBP91 million, widening from GBP34 million in the previous quarter, despite underlying performance improvements.
- The company faces potential cost increases due to a recent Supreme Court ruling allowing states to levy taxes on mineral rights, which could impact the cost structure of its mining operations.
Ladies and gentlemen, good day, and welcome to the Tata Steel Analyst Call. Please note that this meeting is being recorded. All the attendees audio and video has been disabled from the back end and will be enabled subsequently. I would now like to hand the conference over to Ms. Samita Shah. Thank you, and over to you, ma'am.
Yes. Thank you, Kingshuk. Good morning, everybody. Good afternoon and good evening to others as well. On behalf of Tata Steel, I'm delighted to invite you all to this call today to discuss our results for the first quarter of FY25. I am joined by our CEO and MD, Mr. TV Narendran; and our ED and CFO, Mr. Koushik Chatterjee.
We declared our results yesterday. There is a presentation as well on our website, which shares some more details about the financial and the operating performance. I hope you had a chance to go through both. Before I hand it over to them, I would just like to draw your attention to the fact that the entire discussion today will be covered by
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