Latest news with #KoushikChatterjee
India.com
19-05-2025
- Business
- India.com
This company of Ratan Tata decides to cut costs by Rs 115000000000, the company is…, will focus on…
Tata Steel, a company under the Tata Group, has announced a cost-cutting initiative. Executive Director and CFO Koushik Chatterjee revealed that the company wants to achieve cost reductions of Rs 11,500 crore by controlling manageable expenses in various geographic regions. Cost-cutting usually means reduction in unnecessary expenditures and improving profitability and operational efficiency. In an interaction with analysts, Koushik said that he will review the company's cost transformation program across different regions to assess progress and set targets for the next 12-18 months. The structural cost takeout across all entities of Tata Steel during FY25 was about Rs 6,600 crore focusing on fixed cost takeout, efficiencies in manufacturing, procurement, raw material optimisation with leaner coal blends and fixed overheads, he said. 'Looking ahead to FY2026, our focus continues to be on controllable factors, and we are targeting further cost takeouts of almost Rs 11,500 crores, roughly about Rs 1.3 billion across geographies by focusing on controllable costs,' the CFO said. The statement has come at a time when the company is expanding its Kalinganagar plant capacity to 8 million tonnes amid transition to green steel making processes in the UK and the Netherlands. In the two foreign markets, the company has already announced job cuts. In Q4 FY25, Tata Steel reduced expenses to Rs 54,167.61 crore from Rs 56,496.88 crore in the year-ago period. The company has also posted an over two-fold increase in consolidated net profit at Rs 1,200.88 crore in the March 2025 quarter. Speaking further on cost takeouts, Koushik said that in India, the company intends to deliver savings of Rs 4,000 crore by focusing on operating KPIs (key performance indicators), employee productivity, supply chain optimisation, coupled with investment in projects with low payback period. There is a specific focus on conversion cost, and aim is to optimise conversion costs by about Rs 1,000 – 1,200 per tonne. In the UK, Tata Steel intends to continue progressing on achieving a lean structure by further reduction in fixed costs of 29 per cent YoY of around 220 million pounds. Key levers range from optimising the cost of substrate and upgradation of IT infrastructure to reduce corporate overheads and rationalisation of downstream operations to improve the profitability. 'Our total fixed cost in FY2024 was about 995 million pounds, which reduced to about 762 million in FY2025 pounds, and we target to bring it to around 540 million pounds in the next financial year,' he said. The company has secured 500 million pounds support from the UK government for the transition to scrap-based electric arc manufacturing. (With Inputs From PTI)
Time of India
18-05-2025
- Business
- Time of India
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
Time of India
14-05-2025
- Business
- Time of India
Tata Steel aims to slash costs by Rs 10,000 crore to pare debt, fund growth
Tata Steel is eyeing cost savings of over ₹10,000 crore across its operations this fiscal, as it continues to pursue its enterprise goal of cutting debt by $1 billion every year while continuing to invest in growth, a top executive said. 'In the UK, when we take out more than ₹2,000 crore cost this year, that is effectively to self-sustain the UK, because India has been supporting the UK for long,' Tata Steel chief financial officer Koushik Chatterjee told ET in an exclusive interaction. 'In the Netherlands, when we take out this cost ( ₹4,500 crore), it actually creates the capital for future decarbonisation.' In India, these cost savings will be used for deleveraging as well as investing in growth, he said. Tata Steel ended the fiscal 2025 with a net debt of ₹82,579 crore, up from ₹77,550 crore a year ago. Employee productivity, managing fixed costs, making changes in the way coal is procured and blended, focusing on repair and maintenance and optimising the supply chain are some of the levers that the steelmaker will be using in managing its costs takeouts. In 2024-25, the company had cost takeouts of around ₹6,600 crore, of which about ₹2,800 crore came from operations in India, ₹2,600 crore was in the UK, and ₹1,150 crore in the Netherlands. 'One of the fundamental areas is that when we see that the external facto ₹move very significantly, the controllable facto ₹are the ones that we focus on, which is this cost takeout,' Chatterjee said. The company sees itself faring better in the current fiscal as compared to the previous, with higher sales volumes, stability in product prices, low raw material prices aiding spreads, and cost initiatives flowing into profits. Volumes are expected to go up by one and a half million tonnes in India, with the Kalinganagar plant expansion. Among potential risks and developments the company is monitoring this fiscal are the tariff situation between the US and the rest of the world, global geopolitical issues, and China's exports of steel. 'China has exported 10 million tonnes (of steel) a month in March and April. We were expecting that China will tone down on exports,' said T V Narendran, CEO of Tata Steel. 'If this continues at 10 million tonnes a month, then it's again going to be challenging.' SC ruling The Supreme Court recently struck down JSW Steel 's acquisition of Bhushan Power and Steel under the Insolvency and Bankruptcy Code, 2016. Tata Steel had acquired Bhushan Steel through the same route. 'We did look at whether there is anything in the judgment which impacts what we did. And there is nothing that has an impact on what we did,' Narendran said. 'I think we are comfortable with the process that we followed.'
India Today
14-05-2025
- Business
- India Today
Explained: Why Tata Steel shares jumped over 4% today
Tata Steel shares climbed more than 4% on Wednesday after the company outlined an ambitious capital expenditure plan of Rs 15,000 crore for FY26, as reported by The Economic around 10:30 am, shares of the company were trading 4.41% higher at Rs 156.10 on the BSE. The rally was sparked by fresh optimism following disclosures from top company officials about the scale and focus of Tata Steel's expansion Steel CEO and MD TV Narendran and CFO Koushik Chatterjee told ET that nearly 80% of the proposed capex will be channelled into projects across India. That translates to Rs 11,000 crore earmarked for domestic operations, with Rs 1,900 crore going to the UK and the remainder set aside for initiatives in the investment plan sheds light on Tata Steel's strategy to aggressively scale up its production capabilities, particularly in India. Key domestic projects include a 5 million tonnes per annum blast furnace at Kalinganagar and an Electric Arc Furnace in the company has received planning permission to begin work on its EAF project at Port Talbot in the UK, with ground activities scheduled to begin in July were also encouraged by Tata Steel's strong March quarter steelmaker reported a consolidated net profit of Rs 1,301 crore for Q4FY25, more than double the Rs 611 crore it posted in the same quarter last year. The result beat Street estimates, which had pegged profit at around Rs 1,062 crore. Revenue, however, declined 4.2% year-on-year to Rs 56,218 it may be noted that over the past year, the stock has been under pressure, falling nearly 5.5%. But recent momentum has been positive. Tata Steel has gained more than 14% year-to-date and is up over 14% in the last month alone. advertisement
Time of India
14-05-2025
- Business
- Time of India
Tata Steel shares rally over 3% on Rs 15,000 cr capital expenditure plan
Tata Steel shares rallied 3.5% to an intraday high of Rs 154.75 on the BSE on Wednesday, May 14, after the company's substantial capital expenditure plan of Rs 15,000 crore for FY26, according to a report. The capex will support the company's expansion across India, the UK, and the Netherlands, as confirmed by senior company officials. Of the total planned expenditure, approximately 80% will be directed toward ongoing projects in India, according to CEO & MD T.V. Narendran and CFO Koushik Chatterjee, as reported by The Economic Times. As per the plan, Rs 11,000 crore has been earmarked for domestic operations, Rs 1,900 crore for the UK, and the remainder for the Netherlands. In FY2024-25, Tata Steel's total capital expenditure stood at Rs 15,671 crore, including Rs 3,220 crore spent in the fourth quarter alone. Live Events Expansion plans and new projects Tata Steel is ramping up its production capabilities with a 5 million tonnes per annum (MTPA) blast furnace at Kalinganagar and the construction of an Electric Arc Furnace (EAF) in Ludhiana. The company has also received planning permission for its EAF project at Port Talbot in the UK, with site activities scheduled to commence in July 2025. Tata Steel Q4 results For Q4FY25, Tata Steel reported a 113% year-on-year surge in consolidated net profit to Rs 1,301 crore, up from Rs 611 crore in the same period last year. The profit, attributable to shareholders, surpassed Street estimates of Rs 1,062 crore. Revenue from operations for the March quarter stood at Rs 56,218 crore, down 4.2% from Rs 58,687 crore in the corresponding quarter of the previous fiscal year. Also read: Reliance looks for $1.3-billion gloss finish to its exit from Asian Paints Tata Steel share price history Over the past year, Tata Steel shares have declined 8.76%. However, on a year-to-date (YTD) basis, the stock has gained 9.32%. It is up 7.36% over the last six months and 9.77% in the past three months. In the last one month alone, the stock has gained 12.03%. On Tuesday, Tata Steel shares closed 1.35% lower at Rs 149.50 on the BSE. ( Disclaimer : Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
