Tata Steel on Wednesday reported a net profit of Rs 611 crore in the January-March quarter of FY2023-24. The net profit in the last quarter of FY24 slumped by almost 65% on a year-on-year (YoY) basis compared to Rs 1,566 crore in Q4FY23. The company's revenue from operations in the reporting quarter fell 7% year-on-year to Rs 58,687 crore.
On a Q-o-Q basis, consolidated revenue from operations went up by 6% from Rs 55,311.88 crore in the previous quarter and net profit rose 19% from the previous quarter. The drop was mainly as domestic steel prices remained under pressure during the quarter as India imported higher volumes of finished steel from top producer China.
In Q4, India deliveries were up 5% year-on-year to 5.42 million tonnes. Revenues from the domestic business came in at Rs 36,864 crore and EBITDA was at Rs 8,261 crore with an EBITDA margin of around 22%.
The company's board has recommended a dividend of Rs 3.6 per share and fixed June 21 as the record date to determine the eligibility of shareholders. The dividend, if approved by the shareholders at the AGM, will be paid on and from July 19.
"The dividend, if approved by the shareholders at the AGM, will be paid, subject to deduction of applicable tax at source, on and from Friday, July 19, 2024," the company said in an exchange filing.
Besides, the company board also approved issue of additional debt securities, in one or more tranches, up to Rs 3,000 crore in the form of Non-convertible debentures or NCDs on private placement basis.
Tata Steel has also approved the proposal to infuse funds up to $2.11 billion (Rs 17,407.50 crore) into a wholly-owned subsidiary T Steel Holdings (TSHP) Singapore, to repay debt and to support the restructuring costs at Tata Steel UK.
Separately, Tata Steel will also convert debt instruments of $565 million held by the company in TSHP. Company will continue to hold these converted equity shares, it said.
Shares of Tata Steel closed at Rs 174.20, down by 0.37%.
