Tata Steel's Q3 Profit Dips 43% to ₹295 Crore Amid Revenue Decline

Synopsis

Tata Steel reported a 43% net profit decline to ₹295.49 crore for Q3 FY25, compared to ₹522.14 crore last year. Revenue dropped to ₹53,231 crore, a 2.7% year-on-year decrease. Despite a 200% return over five years, shares have fallen 6.26% in the past year.

Key Takeaways

Net profit fell by 43% to ₹295.49 crore.
Revenue decreased to ₹53,231 crore, down 2.7%.
Expenses dropped 2.3% to ₹52,118.09 crore.
Shares closed at ₹126.40, down 2.77%.
Market cap as of January 27: ₹1,57,790.72 crore.

Mumbai, Jan 27 (NationPress) Tata Steel announced a significant 43% decrease in its net profit for the third quarter, which concluded on December 31 (Q3 FY25). The company's net profit for this period was recorded at ₹295.49 crore, a stark contrast to ₹522.14 crore from the same quarter last year.

When compared sequentially, the profit saw a sharper decline of 61.1%, dropping from ₹758.84 crore in the previous quarter (Q2 FY25), as per the company's filing with the stock exchange.

Additionally, Tata Steel's revenue from operations experienced a 2.7% year-on-year decline, totaling ₹53,231 crore for the October-December 2024 quarter, compared to ₹54,727.30 crore in Q3 FY24.

On a sequential basis, revenue dipped by 2.3% from ₹54,503.30 crore reported in Q2 FY25, according to its regulatory filing.

The total income for the quarter reached ₹53,869.33 crore, reflecting a 3% decrease from ₹55,539.77 crore in the previous year's corresponding period. When compared to the preceding quarter, it also showed a slight decline from ₹54,503.30 crore.

Tata Steel's total expenses for Q3 FY25 amounted to ₹52,118.09 crore, a drop of 2.3% from ₹53,351.13 crore in the same quarter last year. Sequentially, expenses also saw a 0.4% decline from ₹52,331.58 crore in Q2 FY25.

This drop in expenses was primarily due to reduced spending on Employee Benefits and Other Expenses, which fell by 11.6% to ₹17,742 crore from ₹20,074.73 crore in the previous year, as detailed in the company's regulatory filing.

In the Employee Benefits segment, Tata Steel reported a nearly 7% decrease to ₹6,072 crore in Q3, compared to ₹6,527 crore a year prior.

On Monday, Tata Steel shares closed down by 2.77% at ₹126.40, down from the previous session's ₹130.

The stock has faced pressure recently, touching a 52-week low of ₹122.60 on January 13, while it reached a 52-week high of ₹184.60 on June 18. As of January 27, Tata Steel's market capitalization was ₹1,57,790.72 crore.

Over the last five years, Tata Steel's shares have provided an impressive 200% return to investors. However, the stock's performance has been lackluster over the past year, with a decline of 6.26%. Year-to-date, shares are trading 7.45% lower in 2025.