Tata Steel Q4 Results: Net Profit Surges 113% to ₹1,301 Crore; ₹3.60 Dividend Announced
Strong Performance in Q4FY25 Despite Revenue Dip; Company Reports Annual Profit After Previous Year's Loss
Tata Steel, one of India's leading steel manufacturers, has posted impressive financial results for the fourth quarter of fiscal year 2025, with its consolidated net profit more than doubling compared to the same period last year. The company has also announced a dividend payout for shareholders, signaling confidence in its financial stability and future outlook.
Q4 Financial Performance Highlights
For the quarter ending March 31, 2025 (Q4FY25), Tata Steel reported a consolidated net profit of ₹1,300.81 crore, representing a substantial 113% increase from ₹611.48 crore in the corresponding quarter of the previous year (Q4FY24). The performance is even more remarkable on a sequential basis, with profits surging nearly four-fold from ₹326.64 crore in Q3FY25.
However, the company's consolidated revenue from operations showed a slight decline, standing at ₹56,218.11 crore in Q4FY25, down 4.2% year-on-year from ₹58,687.31 crore in Q4FY24. On a quarter-on-quarter basis, the revenue increased by 4.8% from ₹53,648.30 crore in Q3FY25, indicating improving business momentum in the final quarter of the fiscal year.
Annual Performance Turnaround
The full fiscal year results demonstrate a significant turnaround for Tata Steel. For FY25, the company reported a consolidated net profit of ₹3,173.78 crore, a remarkable recovery from the net loss of ₹4,909.61 crore recorded in FY24. This positive shift reflects the company's successful strategic initiatives and operational improvements implemented throughout the year.
Annual revenue from operations stood at ₹2,18,542.5 crore, representing a 4.6% decrease from ₹2,29,170.78 crore in FY24. Despite this slight revenue decline, the company's ability to turn a substantial profit demonstrates improved operational efficiency and cost management.
Record-Breaking Operational Performance
Commenting on the results, TV Narendran, CEO & MD of Tata Steel, highlighted that FY2025 has been "an important transition year" for the company with significant developments across operating geographies. He noted that India deliveries reached an all-time high of approximately 21 million tons, marking a 5% year-on-year increase. This growth was supported by the smooth ramp-up of the new blast furnace at Kalinganagar and capacity utilization close to 100% at other operations.
Narendran also emphasized Tata Steel's continued dominance in specialized segments: "At the segment level, Tata Steel continues to be the preferred supplier for automotive steel, with high share of business in new model launches. Tata Tiscon achieved 'best ever' volumes and grew by 19% year-on-year to around 2.4 million tons."
Dividend Announcement
In a move that will benefit shareholders, Tata Steel's board of directors has recommended a dividend of ₹3.60 per share for the financial year 2024-25. This dividend is subject to approval by shareholders at the upcoming Annual General Meeting (AGM) scheduled for Wednesday, July 2, 2025.
Market Response
Investor sentiment toward Tata Steel was already positive ahead of the results announcement. The company's shares closed up 6.16% at ₹151.55 per share on Monday, May 12, 2025, indicating strong market confidence in the company's performance prospects.
Future Outlook
With its successful transition through FY25, record-breaking operational performance in India, and return to profitability on an annual basis, Tata Steel appears well-positioned for continued growth. The company's strong market position in specialized segments like automotive steel and construction products (Tata Tiscon) provides a solid foundation for future performance.
The dividend declaration further underscores management's confidence in the company's financial health and future prospects, potentially making it an attractive consideration for income-focused investors in the steel sector.
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