Tata Steel UK celebrates groundbreaking event of new EAF facility in Port Talbot
The new EAFset to be commissioned at the end of 2027is expected to reduce Port Talbot's carbon emissions by approximately 90%, equivalent to 5 million tonnes of CO₂ per year, while securing high-quality sustainable steel production and supporting 5,000 UK jobs directly.
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Mint
6 days ago
- Mint
Tariff war delays Tata Steel UK breakeven, says CEO Narendran
Mumbai: Tata Steel's plans to turn around its loss-making UK operations have been delayed by at least six months due to global trade disruptions and the spillover effects of US tariffs, the company's top executives said in an interview. Despite the setback, the executives expressed confidence about the company's broader international strategy, including securing Dutch government support to decarbonize its Netherlands operations, and defended its capacity expansion plans in India amid global concerns of steel overcapacity. India's second-biggest steelmaker by capacity had earlier guided for an Ebitda (earnings before interest, tax, depreciation and amortization) breakeven in the UK by the end of the second quarter of FY26. The new target is the final quarter of this fiscal year. In its April-June quarter results announced on Thursday, Tata Steel reported that its UK operation's Ebitda loss narrowed to £41 million in the June quarter of this fiscal compared to £80 million reported in the last quarter of FY25. The company's chief executive officer T.V. Narendran said while there was a delay in achieving Ebitda breakeven due to the direct and indirect effects of the tariffs announced by US President Donald Trump, the company was moving in the right direction. 'Because of tariffs, our exports to the US (from the UK) are impacted," Narendran said. Even the company's customers like British carmakers were facing the heat from the tariffs, compounding the business impact for Tata Steel, he added. An influx of steel from other countries also made a difference. 'Japanese and Korean steel, which would have otherwise gone to the US, is looking for alternate markets. It came to the UK because the UK has not been as fast as the EU in setting tighter quotas for imports," the chief executive said. Chief financial officer Koushik Chatterjee added that the journey from Ebitda breakeven to net profit breakeven for Tata Steel UK would not take that long. 'The good thing is that there is no tax implication in the UK because we have a huge amount of unabsorbed tax losses. The asset value is low, so the depreciation is low and debt is mostly working capital," said Chatterjee. 'So once we get to Ebitda positive with sufficient cushion, it's not a big ask (to achieve net profit)," he said. Earlier this month, at the Tata Steel annual general meeting, Tata Sons chairman N. Chandrasekaran set a new goal of achieving net profit from the company's UK operations in the current fiscal year. 'I feel that the UK should be PAT (profit after tax) positive, so the company is working towards making it profitable," said Chandrasekaran, who echoed shareholder concerns. 'We expect the UK this year to perform much better than last year and it will definitely be Ebitda positive." Tata Steel shares closed 2.12% lower on Thursday on the BSE at ₹157.92, underperforming the benchmark Sensex, which fell 0.36% on the stock exchanges. The Netherlands' Scenario Meanwhile, the steelmaker said its negotiations with the Dutch government were progressing well for fiscal support to overhaul its steelmaking operations in the Netherlands towards more environmentally sustainable processes. It plans to replace two blast furnaces over the coming years with electric arc furnaces (EAFs)–like it did in the UK–to cut emissions. All stakeholders, including Tata Steel India, Tata Steel Netherlands, the Dutch government, and the local provincial government will soon sign a non-binding letter of intent. That will be followed by a binding agreement once the Netherlands elects a new government later this year. 'Even though the current Dutch government has fallen and elections are scheduled for October, our project is part of a Parliament-endorsed initiative. That allows us to continue negotiations and proceed with the non-binding agreement," said Chatterjee. The agreement on the blast furnaces involves two phases. During phase one, the company will install an EAF and then shut down one blast furnace. The second phase is planned for the mid-2030s when the remaining blast furnace will be shut. Blast furnaces are large units that use the heat from coke to convert iron ore into purified molten metal for further processing into steel. EAFs do this process using electricity without any coke, thus cutting emissions. India needs more capacity The oldest steelmaker in Asia responded to theNew York Times'claim that there was oversupply of steel in the world and that Tata Steel's operations were suffering due to this overcapacity. The two executives defended the company's strategy to expand capacity. 'The larger question isn't about overcapacity,"said Narendran. 'It's about where that capacity exists and whether it's in a competitive geography. For a country like India, which will consume 500 million tons of steel, should we really import 300 million tons from China? And what happens if China stops supplying tomorrow?" Steel is a strategic resource for national infrastructure, automotive, defence, and capital goods sectors, making self-sufficiency critical, Narendran pointed out. 'Even Europe, which was unsure about keeping its steel industry alive, now wants to retain capacity," he said. 'Every geography wants to ensure it can meet its own demand." The top executive questioned why high-cost steel producers like Japan and South Korea export significant volumes of steel despite lacking cost or raw material advantages. 'At least China offers cheap steel. But why should Japan or Korea be exporting steel when they're not low-cost producers?" he said. According to Chatterjee, overcapacity discussions, particularly by Organization for Economic Co-operation and Development (OECD), often ignore ground realities. 'Europe and the US de-industrialized by outsourcing to China," he said. 'Now, with changing global priorities like supply chain security and carbon taxes, countries are reassessing. For India, with its abundant raw materials, skilled labour and growing infrastructure needs, not building capacity would be foolish." The issue of overcapacity exists in regions where it's no longer needed. Rationalizing it globally is the real issue. Steel should be produced where it's most competitive, said Chatterjee.
Business Standard
7 days ago
- Business Standard
Tata Steel posts 97% YoY jump in Q1 PAT; net debt stands at Rs 84,835 crore
Tata Steel (TSL) has reported 97.1% increase in consolidated net profit to Rs 2.164.15 crore in Q1 FY26 from Rs 1,097.94 crore recorded in Q1 FY25. Consolidated revenues for the April June 2025 quarter were Rs 53,178 crore, down 2.9% YoY. For the period under review, India revenues aggregated to Rs 31,137 crore, Netherlands revenue added up to Rs 14,619 crore and UK revenue amounted to Rs 6,096 crore. EBITDA improved by 10% YoY to Rs 7,480 crore while EBITDA margin expanded by 230 basis points to 14.1%. The improvement in margins was aided in part by the companys ongoing strategic initiatives. Adjusted EBITDA per ton was Rs 10,470 for Q1 FY26 as against Rs 9,407 for Q1 FY25. Profit before tax in Q1 FY26 stood at Rs 3067.08 crore, up by 29% from Rs 2376.82 crore in Q1 FY25. The company has spent Rs 3,829 crore on capital expenditure (capex) during the quarter. Offering additional details about its capex, TSL stated that the 5 MTPA blast furnace at Kalinganagar is being ramped up successfully. One of the two continuous galvanising lines in the 2.2 MTPA CRM complex has been commissioned. Construction of the EAF in Ludhiana is currently in progress. In the UK, the groundbreaking ceremony held on 14 July marked the official commencement of construction for the countrys largest low-carbon steelmaking facility. The company's net debt stood at Rs 84,835 crore. The group liquidity remained strong at Rs 43,578 crore, which includes cash & cash equivalents of Rs 14,118 crore. T V Narendran, chief executive officer & managing director: Tata Steel has demonstrated robust profitability across geographies despite volatile global macro conditions and heightened uncertainty. The strong improvement in our 1Q performance on QoQ as well as YoY basis was driven by an increase in our net steel realisations and the planned cost-take outs. In India, our large distribution network with 25,000-plus dealers & distributors and our focus on delivering customer requirements helped us in selling higher value-added products and in creating value from the new facilities we commissioned. The volume ramp up at Kalinganagar is progressing smoothly and within six months of the start-up of the continuous annealing line facility, we have been successful in receiving grade approvals for high strength and ultra-high strength steel. Tata Steel now stands at par with global leaders in providing next generation lightweighting solutions and catering to advanced mobility applications. We are also leveraging the growing digital marketplace by expanding presence through e-commerce platforms such as Aashiyana and DigECA. The Gross Merchandise Value through these platforms now stands at Rs 5,400 crores on annualised basis, an increase of 52% YoY. Our mining operations complement steelmaking by providing secure and reliable supply of raw materials. I am happy to share that our Noamundi Iron ore mine was adjudged with 7-star rating by the Ministry of Mines for scientific and sustainable mining, one of only three such mines in India. In UK, we recently had the groundbreaking ceremony for the EAF at Port Talbot which marks yet another milestone in our journey to become a sustainable green steel operations. In Netherlands, our liquid steel production was 1.7 million tons and was close to rated capacity and performance was aided by favourable sales mix and higher realisations in the downstream business." Tata Steel has presence across the entire value chain of steel manufacturing from mining and processing iron ore and coal to producing and distributing finished products. The company offers a broad range of steel products including a portfolio of high value-added downstream products such as hot rolled, cold rolled, coated steel, rebars, wire rods, tubes and wires.
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Business Standard
30-07-2025
- Business Standard
Tata Steel Q1 PAT jumps 116% to ₹2,078 cr on cost cuts, better realisations
Tata Steel on Wednesday reported a 116.51 per cent year-on-year (Y-o-Y) jump in consolidated net profit (attributable to owners of the company) at ₹2,077.68 crore in the first quarter of 2025-26 (Q1FY26) led by an increase in net steel realisations and planned cost takeouts. The steel major's net profit in the year-ago period had stood at ₹959.61 crore. Total revenue on a consolidated basis in Q1FY26 was ₹53,178.12 crore, down 2.91 per cent Y-o-Y. Both revenue and net profit came in ahead of Bloomberg consensus estimate at ₹51,409 crore and 1,786 crore, respectively. Sequentially, revenue was down 5.41 per cent and net profit up 59.72 per cent. Commenting on the company's performance, T V Narendran, managing director and chief executive officer (MD&CEO), said: 'Tata Steel has demonstrated robust profitability across geographies despite volatile global macro conditions and heightened uncertainty. The strong improvement in our Q1 performance on Q-o-Q (quarter-on-quarter) as well as Y-o-Y basis was driven by an increase in our net steel realisations and the planned cost takeouts.' Domestic operations Tata Steel India reported a turnover of ₹31,137 crore in Q1FY26 compared to ₹33,195 crore in Q1FY25. Reported profit after tax (PAT) was at ₹3,454 crore as against ₹3,337 crore in the year-ago period. Quarterly production and deliveries in India were affected by maintenance shutdowns in Jamshedpur and Neelachal Ispat Nigam Limited. The company expects these to normalise in the coming quarters. 'In India, our large distribution network with 25,000+ dealers & distributors and our focus on delivering customer requirements helped us in selling higher value-added products, and in creating value from the new facilities we commissioned,' Narendran said. Tata Steel's 5 million tonnes per annum (mtpa) blast furnace at Kalinganagar was ramping up well, the company said. It has commissioned one of the two continuous galvanising lines in the 2.2 mtpa CRM (cold rolling mill) complex. In Ludhiana, construction for the electric arc furnace (EAF) was underway. In the UK, the official start of construction for the EAF was marked by a groundbreaking ceremony on July 14. Tata Steel's capital expenditure (capex) during the quarter stood at ₹3,829 crore. Tata Steel Europe In the UK, revenues were at 536 million pound for the quarter. Ebitda loss at 41 million pound narrowed from a loss of 80 million pound in Q4FY25. Deliveries at 0.60 mt were marginally lower on subdued demand. Ebitda stands for earnings before interest, taxes, depreciation and amortisation. Revenues from the Netherlands operations were at 1,519 million euro for the quarter while Ebitda was 64 million euro. The Ebitda in Q4FY25 had stood at 14 million euro. Liquid steel production was 1.70 mt and deliveries were 1.50 mt. On decarbonisation in the Netherlands, Tata Steel said in its results disclosure that intense discussions between the management and the Netherlands government are ongoing with relation to a "tailor-made approach" for support to address the reduction of carbon emissions and environmental concerns of the local community and authorities. Tata Steel expects the Dutch government to provide a certain level of financial support, which is the subject of discussions between the company, Tata Steel Netherlands, and the government there. Cost transformation programme Koushik Chatterjee, executive director and chief financial officer (ED&CFO), said: 'Tata Steel has delivered resilient performance and sequentially improved margins by around 200 basis points (bps) despite challenging demand and uncertainty on trade tariffs.' He also said that the cost transformation programme, focused on multiple levers — including operating KPIs (key performance indicators), supply chain, and procurement — had delivered around ₹2,900 crore during the quarter. 'We remain focused on cost optimisation, operational improvements, and working capital management to maximise cashflows,' Chatterjee said. As of June 30, 2025, net debt stood at ₹84,835 crore and group liquidity at ₹43,578 crore, with cash and cash equivalents of ₹14,118 crore.
