Share price of India’s largest domestic steel producer moved down by 5 percent on BSE to hit an intraday low at Rs. 165.5 in the trading session of Thursday, after reporting FY24 financial results with a fall in net profit of 64.6 percent YoY.
With a market capitalisation of Rs. 2.07 lakh crore, at 01:05 p.m., the shares of Tata Steel Limited were trading in the red at Rs. 166.4, down by 4.5 percent, compared to its previous closing price of Rs. 174.2.
The fluctuations in the share prices were observed after the company announced the financial results for FY24, through the recent filings with the stock exchanges on Wednesday post-market hours.
The revenue from operations stood at Rs. 58,446 crores in Q4 FY23-24, indicating a growth of 6.8 percent QoQ from Rs. 54,727.3 crore in Q3 FY23-24, but on a year-on-year basis, it fell by 6 percent from Rs. 62,238.8 crore in Q4 FY22-23, due to lower realisations partly offset by higher India volumes.
Tata Steel witnessed a rise in the after-tax profit by 6.3 percent QoQ from Rs. 522.14 crore in Q3 FY23-24 to Rs. 555 crore in Q4 FY23-24, but declined by 64.6 percent YoY from Rs. 1,566.24 crore in Q4 FY22-23 to Rs. 554.6 crore in Q4 FY23-24.
In terms of financial year, the business experienced a fall in PAT from a profit of Rs. 8,075 crore in FY22-23 to a loss of Rs. 4,910 crore in FY23-24.
The consolidated reported Earnings Before Interest, Taxes, Depreciation, and Amortisation, or reported EBITDA decreased to Rs. 6,631 crore in Q4 FY23-24 from Rs. 7,225 crore in Q4 FY22-23, registering a decline of 8.2 percent YoY.
Tata Steel aspires to have a 20 percent diverse workforce by 2025, and has been on a multi-year digital-enabled business transformation journey intending to be the leader in ‘Digital Steel making by 2025’.
Further, the Board of the company has recommended a dividend of Rs. 3.6 per equity share of the face value of Rs. 1 each for FY23-24 subject to the approval of the shareholders.
The Board also approved the issue of additional debt securities, in one or more tranches, up to Rs. 3,000 crore in the form of Non-Convertible Debentures (NCDs) on a private placement basis.
The stock has delivered positive returns of nearly 81.6 percent in the last one year and about 71.4 percent in six months. So far in 2024, it has given around 34 percent of positive returns.
Established in 1907 as Asia’s first integrated private steel company, Tata Steel Limited is among the leading global steel companies and is primarily engaged in the business of manufacture and distribution of steel products.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
