Tata Steel Ltd posted a consolidated net profit of Rs 759 crore for Q2 FY25, marking a strong return to profitability after a net loss of Rs 6,511 crore in the same quarter last year. However, despite the improved bottom line, Tata Steel’s revenue dipped by 3% year-on-year to Rs 53,905 crore, affected by challenges in the Indian steel market.
The company’s struggles included low steel prices due to cheaper imports, especially from China, and reduced demand in the wake of a slowdown in infrastructure projects following the General Elections. The significant loss reported last year was largely due to a Rs 6,899 crore provision for restructuring its UK operations.
In the latest quarter, Tata Steel made an additional provision of Rs 34.21 crore for further closures in the UK. This includes shutting down its last active blast furnace, coke ovens, and other assets at its Port Talbot steelworks in Wales. The company’s restructuring efforts in the UK reflect a strategic shift aimed at managing costs and adapting to the evolving global steel market.
On November 6, Tata Steel’s shares on the NSE closed 1% higher at Rs 153.81.
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Source: Moneycontrol
News Desk
