Tata Steel shows a surprise dive into the red with Rs 2,224-cr loss in Q3

Profitability was affected by the sharp drop in realisations and spreads in Europe, Tata Steel said.

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26 Aug, 2025 12:21

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Tata Steel on February 6 reported a surprise consolidated net loss of Rs 2,223.84 crore for the quarter ended December 2022, against a profit of Rs 9,572.67 crore in the same quarter last year.

The steelmaker in an exchange filing said its revenue from operations fell 6.08 percent year on year (YoY) to Rs 57,083.56 crore from Rs 60,783.11 crore.

According to a poll of brokerage firms conducted by Moneycontrol, the company's net profit was expected to tank 88 percent YoY and 24.3 percent QoQ to Rs 1,146 crore in the quarter under review.

The company said during the quarter, EBITDA was Rs 4,154 crore, with
an EBITDA margin of 7 percent. Profitability was affected by the sharp drop in realisations and spreads in Europe, it added.

ALSO READ: Tata Steel faced tough times in India in Q2FY23, in Europe in Q3: TV Narendran, MD

"In India, steel prices were subdued even as raw material costs moved lower," said Koushik Chatterjee, Executive Director & Chief Financial Officer, Tata Steel. "While this increased margins at standalone operations from around 16 percent in Q2 to 18 percent in Q3, European operations witnessed margin compression due to lower realisations and elevated input costs."

India deliveries stood at 4.74 million tons and were up 7 percent YoY, primarily driven by 11 percent growth in domestic deliveries, which has also enabled an improvement in product mix. Neelachal Ispat Nigam Limited (NINL), which it acquired a while back, began operations and is being ramped to rated capacity of around 1 MTPA. Tata Tiscon rebars are being made from NINL billets, the company said.

Net debt of the company stood at Rs 71,706 crore, with Net Debt to EBITDA at 1.76x and Net Debt to Equity at 0.65x.

The British Steel Pension Scheme (BSPS) with Tata Steel UK as sponsor has completed a substantial part of its de-risking journey with 60 percent of its liabilities insured, the Tata Group firm informed. The buy-in transaction along with actuarial movements has resulted in a non-cash deferred tax expense of Rs 1,783 crore and increased the overall deferred tax expense for the quarter to Rs 2,150 crore.

The company also spent Rs 3,632 crore on capex during the quarter. At Kalinganagar, phased commissioning of 6 MTPA pellet plant has begun. Work on 2.2 MTPA Cold Roll Mill complex and 5 MTPA expansion is  ongoing, it said in a release.