Tata Steel Reports 65% YoY Profit Decline in Q4 FY24
Tata Steel's net profit for the January-March quarter of FY2023-24 witnessed a significant decline of 65% year-on-year (YoY) compared to the same period in the previous year. The company reported a net profit of Rs 611 crore in Q4 FY24, down from Rs 1,566 crore in Q4 FY23.
The decline in profitability was primarily attributed to pressure on domestic steel prices due to increased imports of finished steel from China. This resulted in a 7% YoY drop in the company's revenue from operations, which stood at Rs 58,687 crore for the quarter.
However, on a quarter-on-quarter (QoQ) basis, Tata Steel's performance showed some improvement. Consolidated revenue from operations increased by 6% compared to the previous quarter, while net profit rose by 19%.
The company's board has recommended a dividend of Rs 3.6 per share, subject to shareholder approval at the AGM. The record date for determining shareholder eligibility has been set as June 21, and the dividend will be paid on and from July 19.
Additionally, the board approved the issuance of additional debt securities up to Rs 3,000 crore through private placement. The company also approved the infusion of funds up to $2.11 billion into its wholly-owned subsidiary T Steel Holdings (TSHP) Singapore to repay debt and support restructuring costs at Tata Steel UK.
Shares of Tata Steel closed at Rs 174.20 on the day of the announcement, down by 0.37%.