Tata Steel reported a significant 64% decrease in Q4 profits, dropping to Rs 611.48 crore due to lower steel prices and challenges in its global operations. The prior year saw profits of Rs 1,704.86 crore for the same period.
The company’s consolidated revenue also declined by 6.7% year-over-year to Rs 58,687.3 crore, down from Rs 62,961.5 crore. Despite the drop, there was a 6% sequential increase in revenue from Rs 55,311.88 crore in the preceding quarter.
In response to financial pressures, Tata Steel’s board has cleared the issuance of non-convertible debentures up to Rs 3,000 crore in one or more tranches on a private placement basis to bolster finances.
Additionally, Tata Steel plans to inject up to $2.11 billion into its wholly-owned subsidiary T Steel Holdings in Singapore. This funding is aimed at repaying debts and covering restructuring costs at Tata Steel UK.
As part of its restructuring efforts, Tata Steel has committed to a £1.25 billion investment to establish an electric arc furnace at Port Talbot, marking a significant transition from traditional blast furnaces, and plans to convert $565 million debt into equity in the fiscal year 2024-25.
