Tata Steel plans major multi-crore 'cost takeouts' across global units, says CFO
NEW DELHI:
Tata Steel
aims to cut costs by Rs 11,500 crore across its global operations over the next 12–18 months, focusing on controllable expenses, Executive Director and CFO Koushik Chatterjee said during a post-earnings analyst call.
Building on structural cost savings of Rs 6,600 crore achieved in FY25, the company is intensifying its cost transformation drive. The measures so far have included fixed cost rationalisation, manufacturing efficiency gains, raw material optimisation, procurement enhancements, and overhead reductions.
'Looking ahead to FY2026, our focus continues to be on controllable factors, and we are targeting further cost takeouts of almost Rs 11,500 crore—roughly about $1.3 billion—across geographies,' Chatterjee said, as quoted by news agency PTI.
The push for leaner operations comes as Tata Steel expands its Kalinganagar plant and advances its transition to greener steelmaking in the UK and the Netherlands, both of which involve workforce restructuring.
In the March quarter (Q4 FY25), Tata Steel reduced its consolidated expenses to Rs 54,167.61 crore, down from Rs 56,496.88 crore a year earlier. Consolidated net profit rose to Rs 1,200.88 crore in the same period.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Villas Prices In Dubai Might Be More Affordable Than You Think
Villas In Dubai | Search Ads
Get Quote
Undo
India focus
In India, the company is targeting cost savings of Rs 4,000 crore in FY26 through operational improvements, workforce productivity, and supply chain optimisation. It also plans to reduce conversion costs by Rs 1,000–1,200 per tonne.
UK strategy
The UK operations aim to cut fixed costs by 29 per cent year-on-year- approximately 220 million pounds. Fixed costs have already declined from 995 million pounds in FY24 to 762 million pounds in FY25, with a target of 540 million pounds for FY26.
The UK government has pledged 500 million pounds to support Tata Steel's shift to electric arc furnace technology. Tata Steel has finalised planning approvals, identified technology partners, and advanced design engineering, with 35 million pounds spent in FY25.
The Port Talbot facility in the UK, which has a capacity of 3 million tonnes per annum (MTPA), currently employs about 8,000 people across Tata Steel's UK operations.
Netherlands outlook
In the Netherlands, Tata Steel is targeting cost savings of 500 million pounds through enhanced production efficiency, cost control, and product mix optimisation. The IJmuiden facility produced 6.75 MTPA of liquid steel in FY25.
Talks are ongoing with trade unions and the Dutch government regarding the decarbonisation transition and financial support for the planned transformation.
Capex and debt
Tata Steel has allocated Rs 15,000 crore in capital expenditure for FY26, with 80 per cent earmarked for Indian operations. As of March 2025, the company's net debt stood at Rs 82,579 crore- down Rs 6,200 crore from Rs 88,870 crore in September 2024.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Government approves shifting of Gurgaon's Kherki Daula toll plaza on Delhi-Jaipur NH to Pachgaon
NEW DELHI: The government has approved shifting of Gurgaon's Kherki Daula toll plaza on the Delhi-Jaipur National Highway (NH-48) to Pachgaon, a place beyond Manesar, paving the way for easy commute for lakhs of office goers. Tired of too many ads? go ad free now When the plaza is moved to Pachgaon, over 15 kilometres from Gurgaon, commuters travelling between Delhi and Manesar also won't have to pay toll. Locals have been demanding its removal since 2014. TOI has learnt that Union road transport and highways minister has approved the plan, and to ensure the new spot doesn't see any congestion, the National Highways Authority of India (NHAI) will go for Multi Lane Free Flow (MLFF) toll collection system. For the new facility, the Haryana government has provided nearly 28 acres of land to the highway authority, sources said. The process of shifting and starting the MMLF system to collect toll at Pachgaon may take around six months. 'Pachgaon is the ideal location as it falls beyond Gurgaon and Manesar. Since there is an interchange of the Western Peripheral Expressway and the NH-48 at Pachgaon, the new toll collection point couldn't have been beyond the intersection,' a source said. In the MMLF system, vehicles don't need to stop as overhead cameras installed for each lane will read the vehicle registration number and automatically deduct the charge from the FASTag wallet linked to the vehicle. Sources said a decision has also been taken to have an integrated system to ensure that traffic coming from the Dwarka Expressway side and heading towards Jaipur don't end up paying toll at this point once again as user fee. Tired of too many ads? go ad free now 'This is very much possible. Once the annual toll pass for private vehicles is rolled out most of the issues will be resolved automatically,' said a source. The shifting of the toll plaza will end conflicts between operators and people from areas adjoining Kherki Daula, and fulfil the promise the Haryana and central governments have been making for the past seven to eight years. Locals have been demanding that the NHAI shift the toll plaza citing that the govt has recovered more than the investment made in constructing the Delhi-Gurgaon Expressway by private players and the highway authority. In a written reply to a question in Lok Sabha in March, the road transport ministry said against Rs 2,489 crore incurred as cost for the NH-48's Delhi-Gurgaon stretch, the toll collection has been around Rs 2,775 crore, around 11% more than the investment. After completion of this 27-km Delhi-Gurgaon Expressway, commuters were paying user fees at Sirhaul (Delhi-Gurgaon border) and Kherki Daula toll plazas. Tolling was stopped at the Delhi-Gurgaon border in 2014, bringing relief to commuters travelling between Dhaula Kuan in Delhi and Kherki Daula. However, those going beyond this point paid toll for the entire stretch. At present, NHAI collects toll through its agency. Meanwhile, sources said the decision to shift the Kherki Daula toll plaza by the road transport ministry will create more pressure on the Delhi government and the Municipal Corporation of Delhi (MCD) to do away with physical entry fee collection booths on the capital's borders to prevent congestion. Traffic jams at these places defeat the purpose of huge investment in building highways and expressways for faster connectivity to Delhi.
Mint
an hour ago
- Mint
Week Ahead: Inflation data, US tariffs, FII flow, global cues among key triggers for Indian stock market
The Indian stock market consolidated for the third consecutive week, but also snapped a two-week losing streak, driven by favourable domestic cues, instilling fresh confidence among D-Street investors. This, despite the ongoing trade tensions and uncertainty surrounding tariff negotiations. Next, investors will monitor some key market triggers in the second week of June. India's retail inflation, global tariff announcements, foreign capital flow, macroeconomic data, and global market cues will dictate the market direction. Domestic equity benchmarks Sensex and Nifty 50 were range-bound for most of the week, but surged on Friday to settle near the week's high. Supportive domestic developments helped limit the downside, with the highlight being the Reserve Bank of India (RBI)'s monetary policy, which took the market by surprise. The RBI cut the repo rate by 50 basis points to 5.50 per cent—double the market expectation—and reduced the Cash Reserve Ratio (CRR) by 100 basis points to three per cent, the lowest level since April 2021, further boosting market sentiment. This liquidity boost is expected to lower the cost of funding for banks and spur credit growth, powering rate-sensitive stocks. On Friday, the Nifty 50 logged its best day in three weeks and rose 252 points, reclaiming the psychologically crucial 25,000-mark after investors rallied behind the RBI's bumper policy measures. Sensex added 738 points to end at 82,189, while both indices gained one per cent for the week. The Bank Nifty outperformed, rising 1.5 per cent to settle at 56,578.40 after hitting a fresh all-time high of 56,695, extending its winning streak to four consecutive weeks. In the broader markets, both midcap and smallcap indices outperformed the benchmarks, reflecting a risk-on sentiment among investors, with gains ranging between 2.8 per cent and four per cent. In the coming week, the primary market will witness more action, with some new initial public offerings (IPO) and listings slated across the mainboard and small and medium enterprises (SME) segments. The week will be critical from the domestic and technical points of view. Investors will track domestic macroeconomic data, geopolitical events, and sector-specfic outcomes. Going forward, market participants will focus on key macroeconomic data for further cues. High-frequency indicators such as the consumer price index (CPI) inflation data and the index of industrial production (IIP) will be closely tracked to gauge demand trends and the central bank's next steps. Additionally, the progress of the monsoon and sowing patterns will be monitored due to their implications for rural consumption. "By front-loading easing measures, the RBI has underscored its commitment to reviving domestic growth amid global uncertainties. While such a bold approach was expected to unfold gradually, this decisive action reinforces confidence in its intent to support economic recovery while managing inflation risks," said Ajit Mishra, – SVP, Research, Religare Broking Ltd. One mainboard IPO, Oswal Pumps IPO, will open for subscription this week, while three new SME issues will also open for bidding in the next five days. Among listings, no new IPO-concluded companies are scheduled to be debut on the stock exchanges in the coming week. Foreign Institutional Investors (FIIs) remained net sellers, offloading ₹ 3,565 crore in equities. However, strong domestic institutional flows offset the pressure, as domestic institutional investors (DIIs) infused ₹ 25,513 crore into the cash segment, providing solid support to the broader market. According to Ionic Wealth by domestic brokerage Angel One, FIIs hold 18.8 per cent of Indian equities, compared to 30 per cent in other emerging markets (EMs), offering 'significant room for capital infusion'. Chemicals, telecom, and financials are the sectors attracting FIIs, driven by strong structural themes like the China+1 strategy. India's unique mix of consumption-led growth, robust capex cycles, and high-return-on-equity companies makes it a strong investment case. On the global front, developments in trade negotiations and movements in US bond yields will continue to influence investor sentiment. Global uncertainties and tariff-related risks could keep markets on edge and add to market volatility. According to market analysts, profit booking was visible last week due to the ongoing global uncertainty. Mid- and small caps outperformed large caps, driven by better earnings and valuations. A mildly positive bias emerged from strong US job data and expectations of easing US-China trade tensions. "Benchmark indices attempted recovery after FIIs turned net buyers, encouraged by strong domestic economic indicators amidst a weakening dollar and US bond yields, fostering a 'buy-on-dip' strategy," said Vinod Nair of Geojit Investments. "While China's rare earth restrictions pose long-term risks and investors await the inflation print in the US, the aggressive RBI rate cut, backed by cooling inflation and a steady GDP outlook, is likely to support investor confidence amidst the ongoing global uncertainties," added Nair. Shares of Adani Ports & SEZ, Asian Paints, Adani Enterprises, Ambuja Cements, Adani Total Gas, Piramal Enterprises, among several others, will trade ex-dividend next week starting from Monday, June 2. Shares of some stocks will also trade ex-bonus and ex-split. Check full list here Technically, Nifty 50 has approached the upper band of its prevailing consolidation range of 24,500–25,100. 'A decisive breakout above 25,200 would mark the beginning of a fresh uptrend, with potential to gradually move toward the 25,600–25,800 zone,' said Ajit Mishra of Religare. On the downside, the 24,400–24,600 range is expected to act as a strong support zone during any corrective phase. Bank Nifty has broken above the key 56,000 mark after trading in a tight range for over a month. Mishra now expects it to move towards 58,000, making this segment crucial for broader market direction. In case of a dip, the 55,350–56,000 range is likely to provide strong support. For the market's trading strategy, Mishra maintains a positive outlook and suggests 'buy on dips' unless Nifty 50 decisively breaks below 24,600. However, he clarified that investors should remain selective and focus on fundamentally strong stocks in sectors such as banking, auto, and real estate, which are poised to benefit from lower interest rates. Other sectors may contribute on a rotational basis. Caution is warranted in areas facing margin pressures or global headwinds, such as FMCG and IT. Traders should remain agile and well-informed, especially in light of the macroeconomic data and persistent global uncertainties. Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.
India Gazette
an hour ago
- India Gazette
Rajasthan: Bank employee withdraws Rs 4.58 crore from customers' in Kota, arrested
ANI 08 Jun 2025, 02:27 GMT+10 Kota (Rajasthan) [India], June 8 (ANI): A woman employee of ICICI Bank in Kota allegedly withdrew Rs 4.58 crore from customers' accounts and invested it in the share market, police said on late Saturday, adding that she has been arrested. Sub-inspector (SI) Udyog Nagar Police Station Mohammad Ibrahim told reporters, 'Bank officer Sakshi Gupta took Rs 4.58 crore from 43 customers' accounts. A case has been registered, and she has been arrested'. 'Sakshi Gupta had invested this money in the share market through a demat account,' the officer added. More details are awaited. (ANI)
