Tag Steel Industry

JSW Steel Ltd
JSW Steel’s Strong Volume Data Reflects Positive Demand and Future Potential

Business and Industry Overview: 

JSW Steel Ltd is a very big steel company in India. It makes steel for many uses. It is part of the JSW Group. The JSW Group is a big business group in India. It is worth 24 billion US dollars. The group works in many areas. These include steel, energy, cement, paints, B2B e-commerce, defence, green transport, venture capital, and sports. JSW Steel makes many types of steel. These include hot-rolled coils, cold-rolled coils, TMT bars, wire rods, and color-coated steel. These steel products are used in many things. They are used to build houses, roads, bridges, factories, and cars. They are also used in machines and home appliances. The company has big factories in many places in India. These are in Karnataka (Vijayanagar), Tamil Nadu (Salem), and Maharashtra (Dolvi, Tarapur, Vasind, Kalmeshwar). The company has grown bigger by buying other steel companies. It bought Ispat Steel and Bhushan Power & Steel. It also merged with Jindal Vijayanagar Steel Ltd. These steps helped the company become very strong in India. In March 2025, JSW Steel became the most valuable steel company in the world. It had a market value of 30.3 billion US dollars. Its share price also went up in 2025. It gave good returns to its investors. It is one of the best-performing companies on the Nifty 50 index. The JSW Group has around 40,000 workers. These workers are in India, the USA, Europe, and Africa. The group is very proud of its workers. They come from different cultures and places. The group believes its people are its strength.  

Latest Stock News: 

As of April 8, 2025, JSW Steel’s stock is trading at ₹954.75 with a market value of ₹2.34 lakh crore. The stock recently saw ups and downs, but it rose again after news from China about possible economic support, which helped boost metal stocks. JSW Steel also showed strong performance in February 2025, with a 12% rise in total crude steel production compared to last year, and a 13% rise in domestic output. This growth is due to its focus on expanding its capacity. Investors are now waiting for the company’s Q4 results for FY2025, which will show how well the company is doing in terms of profit and business growth. JSW Steel is a big company in the steel industry. It makes products like steel, sponge iron, and pig iron. Recently, experts changed their view about the stock. Before, it was seen as very strong (bullish). Now, it is seen as only a little strong (mildly bullish). This means the stock may still go up, but not very fast. The company is facing some money problems. Its profit before tax and profit after tax have gone down. This means the company is earning less than before. Also, it has a high Debt to EBITDA ratio. This shows the company has taken a lot of loans and may find it hard to repay them. Even with these problems, the company is still not too expensive to buy. It has a return on capital employed (ROCE) of 9.4%, which shows how much profit it makes from the money it uses. The stock is also cheaper than other similar companies in past years. JSW Steel is still a very strong company in the market. Its market value is ₹2,48,091 crore. It is a big part of the steel sector. The stock is also doing better than many other companies in the BSE 500 index. In the last year, the stock gave a return of 17.62%, which is a good sign. 

Potentials: 

JSW Steel wants to grow a lot in the next few years. Right now, it makes 27 million tonnes of steel every year in India. The company wants to increase this. By 2027, it plans to make 37 million tonnes every year. By 2031, it wants to reach 50 million tonnes per year. This means the company will almost double its steel production. To grow, JSW Steel will build new steel plants. It will also work with other companies. The company wants to grow in India and in other countries too. 

One big project is in Maharashtra. JSW Steel will build a steel plant in Gadchiroli. This new plant will be very large. It will make 25 million tonnes of steel every year. The company will spend ₹1 lakh crore on this project. It will take 7 to 8 years to finish. The plant will be clean and use modern technology. It will be one of the biggest and most eco-friendly steel plants in the world. JSW Steel is also working with a South Korean company called POSCO. Both companies will build a steel plant in Odisha. The plant will make 5 million tonnes of steel every year. This project will also help with new ideas like electric car batteries and clean energy. 

Outside India, JSW Steel is also growing. It will spend $110 million in Texas, USA. It will improve its factory there. This will help make better steel. It will also increase work speed and save money. To do all this, the company will spend ₹20,000 crore in the year 2025. JSW Steel believes India’s economy is growing fast. It also believes that steel demand will stay high. That’s why it is investing a lot.  

Analyst Insights: 

  • Market capitalisation: ₹ 2,33,834 Cr. 
  • Current Price: ₹ 956 
  • 52-Week High/Low: ₹ 1,075 / 824 
  • Dividend Yield: 0.76% 
  • Return on Capital Employed (ROCE): 13.3% 
  • Return on Equity (ROE): 11.8% 

JSW Steel is one of the biggest steel companies in India. It has a strong name and large market share. The company sells many steel products. It supplies to many industries like auto, construction, and infrastructure. 

In the last three years, its sales increased by 30% every year. This is a good sign. It shows people want more steel, and the company is growing. But profit only grew by 2% every year. This is very low. It means the company is earning less money even after high sales. 

In Q3 FY24, the net profit fell by 70.6%. It was ₹1,313 crore this quarter, while it was ₹4,357 crore last year. The reason is high raw material costs and low steel prices. These two things hurt the profit. Also, the EBITDA margin dropped to 13% from 17%. This means the company is making less money from each rupee of sales. 

The stock price is also very high. The P/E ratio is 66.8. This is much higher than Jindal Steel’s P/E of 19.9. High P/E means the stock is expensive. It may not be a good time to buy at this high price. 

JSW Steel also has high debt. Total debt is ₹95,258 crore. This is a big amount. The interest coverage ratio is low. This means it may have trouble paying interest if profits fall again. 

But there are some good points. The company is large and strong. It has a good return on equity (17%). It also uses capital well (ROCE is 13%). These numbers show that the business is still healthy. 

So, the company has both good and bad sides. Because of high stock price, low profit growth, and high debt, the stock is not cheap now. It is better to hold the stock. People who already own the stock can keep it. Long-term outlook is still positive. But it is not the best time to buy more right now. 

Jindal Stainless Ltd
Jindal Stainless Ltd: Growth, Investments & Market Insights | CFO Anurag Mantri Resigns

Business and Industry Overview: 

Jindal Stainless Limited is India’s largest stainless steel company and one of the top five in the world. Founded in 1970 by O.P. Jindal, it is part of the O.P. Jindal Group and produces various stainless steel products, including coils, slabs, plates, strips, and razor blades. These products are used in trains, buildings, cars, and home appliances. 

Jindal Stainless has two big factories in India. One is in Hisar, Haryana, and the other is in Jajpur, Odisha. The Jajpur factory is the bigger one. It can produce 2.1 million tonnes of stainless steel every year. The Hisar factory produces 0.8 million tonnes. It is also India’s biggest maker of coin blanks. The company also has a factory in Indonesia. It sells stainless steel to more than 50 countries. It has 14 offices around the world to manage its business. 

Jindal Stainless is working to reduce pollution and protect the environment. The company wants to become carbon-neutral by 2050. This means it will stop adding carbon pollution to the air. In 2022, it reduced 1.4 lakh tonnes of carbon emissions. It is also using clean energy. The company has teamed up with ReNew Power to build a 300 MW wind and solar power plant at its Jajpur factory. This will help it use less coal and more green energy. 

Stainless steel demand is growing fast. More industries need it for railways, buildings, and electric cars. Jindal Stainless is increasing production to meet this demand. It is also using better technology to improve quality. The company is helping India grow and expanding its business in other countries. 

The stainless steel industry is growing fast. Steel is needed for buildings, bridges, railways, cars, and home appliances. India is the second-largest steel producer in the world. Steel demand is increasing every year. In FY23, India used 119.17 million tonnes (MT) of finished steel. In FY24, this increased to 138.5 MT. Experts say demand will grow by 9-10% in FY25. India is also making more steel. In FY24, it produced 143.6 MT of crude steel and 138.5 MT of finished steel. 

The Indian government is helping the steel industry. In the Union Budget 2023-24, the government gave Rs. 70.15 crore ($8.6 million) to the Ministry of Steel. The Production-Linked Incentive (PLI) scheme is helping companies invest in better quality steel. Companies will invest $1.2 billion (Rs. 10,000 crore) in FY25 and $1.9 billion (Rs. 16,000 crore) by FY24-end. Many steel companies are joining with other companies. This helps global steel companies enter India. 

India has cheap labor and a lot of iron ore. This makes steel cheaper to produce. India has the fifth-largest iron ore reserves in the world. In FY25 (April-October), India made 84.94 MT of crude steel. In April-September 2024, India exported 2.32 MT of finished steel and imported 4.70 MT. In FY23, every person in India used 86.7 kg of steel. By 2030-31, this will increase to 160 kg. 

The future of Indian steel is bright. By 2030-31, India will make more than 300 MT of steel every year. Demand will keep rising. Steel is needed for roads, railways, airports, and electric vehicles. The industry is also working to reduce pollution and use clean energy. With government support, more demand, and big investments, India will become a global leader in steel production soon. 

Jindal Stainless is the largest stainless steel producer in India and one of the biggest in the world. The company makes stainless steel that is used in many products, like cars, buildings, and kitchenware. It has big factories in India, one in Hisar (Haryana) and another in Jajpur (Odisha), where it makes a lot of steel every year. Jindal Stainless also has a factory in Indonesia and sells its products to over 50 countries. The company is strong because it has large factories, uses cheap energy to keep costs low, and makes many types of stainless steel products. It is also working on being more eco-friendly and reducing pollution, with plans to become a zero-emission company by 2050. With its wide range of products, cost savings, and global reach, Jindal Stainless is set to keep growing in the future. 

Latest Stock News: 

Jindal Stainless Ltd (JSL) announced that Anurag Mantri, who is the Executive Director and Group CFO, has decided to resign. He will stop working at the company after business hours on April 4, 2025. Mantri is leaving to explore new job opportunities, but the company hasn’t shared any details about his next job. As Executive Director and Group CFO, Mantri oversaw the company’s finances and helping manage its overall business. Jindal Stainless, which is the largest stainless steel manufacturer in India, made this announcement through an official filing to inform its investors and other stakeholders. The company has not yet mentioned who will take over his role when he leaves. 

Potentials: 

Jindal Stainless Ltd (JSL), the largest maker of stainless steel in India, has shared a big plan to invest ₹5,400 crore to grow its business. They want to increase how much stainless steel they can make to 4.2 million tonnes per year by 2027. This will help Jindal Stainless become a top company in the global stainless steel market. 

A big part of this plan is a project in Indonesia. Jindal Stainless will work with a partner there to build a new factory that will make stainless steel. This new factory will help increase their production by 40%, which means they can make more steel and sell it to more customers in different countries. 

Jindal Stainless is also putting money into its plant in Odisha, India. This investment will help them make different types of stainless steel, such as coils and plates. These are products used in many industries, like cars, buildings, and kitchens. 

The company is also buying 54% of Chromeni Steels, which has a factory in Gujarat. By doing this, Jindal Stainless will be able to make more products and grow its business in India. 

On top of this, Jindal Stainless wants to become more eco-friendly. They are working with ReNew Power to build a renewable energy project in Odisha. This project will give the company clean power to run its factory, and it will help them reduce pollution. Jindal Stainless aims to stop producing carbon emissions by 2050. 

With these plans, Jindal Stainless is working to grow its business, improve its factories, and become better for the environment. These changes will help Jindal Stainless lead the stainless steel industry, both in India and around the world, in the future. 

Analyst Insights: 

  • Market capitalisation: ₹ 51,543 Cr. 
  • Current Price: ₹ 626 
  • 52-Week High/Low: ₹ 848 / 568 
  • Stock P/E: 21.4 
  • Dividend Yield: 0.48% 
  • Return on Capital Employed (ROCE): 22.2% 
  • Return on Equity: 19.9% 

Jindal Stainless Ltd is a good company to invest in because it has shown strong growth. In the last 5 years, its profit has grown by 79% each year. The company is also good at making money. It has a return on equity (ROE) of 25.5%, meaning it is earning well from its shareholders’ money. Its return on capital employed (ROCE) is 22.2%, which shows the company is using its resources effectively. 

The company has improved how it runs its business. For example, it now gets paid faster than before. Its debtor days have dropped from 35.8 to 26.8 days. This helps the company have more cash in hand. 

In 2023, Jindal Stainless made ₹9,765 Cr in sales and ₹716 Cr in profit. Even though its profit growth slowed by 5.35% in the last quarter, it is still making strong profits. The company’s P/E ratio is 21.4, which is lower than other steel companies like JSW Steel (74) and Tata Steel (69). This means Jindal Stainless might be a good deal right now. 

The company’s market value is ₹51,543 Cr, and it gives a steady dividend of 0.48%. It makes stainless steel used in many industries like building, cars, and household products. Even though the stock price has dropped 10% in the last year, Jindal Stainless still looks like a good investment. 

Bharat Wire Ropes Ltd
Bharat Wire Ropes Ltd: Q3 FY24 Net Profit Drops 43.57% – Stock Analysis & Growth Outlook

Business and Industry Overview: 

Bharat Wire Ropes Limited (BWRL) makes steel wires, wire ropes, strands, and slings. The company started in 1986 in Mumbai, Maharashtra. Today, it serves customers in over 52 countries. It has two big factories. One is in Atgaon, with a capacity of 6,000 MTA. The other is in Chalisgaon, with a larger capacity of 66,000 MTA. The company makes products for many industries. These include fishing, mining, shipping, elevators, cranes, oil exploration, and material handling. BWRL also supplies its products to big government organizations. These include Indian Railways, ONGC, BHEL, Shipping Corporation of India, Coal India Limited, port trusts, and electricity boards. The company is listed on BSE and NSE. BWRL makes strong and reliable products. It uses modern machines and new technology. The company has strict quality control and holds many approvals. Some of these include BIS licenses (eight types), RDSO approvals (four types), ISO 9001:2008, DGMS approval, and MMD approval. The company believes in fair business. It cares about reducing pollution and helping society. BWRL has over 1,000 employees and serves more than 600 customers. It is growing every year and working to provide better products worldwide. 

The steel wire and wire rope industry makes products used to lift, pull, and secure heavy loads. These products are important in many industries like construction, mining, shipping, oil drilling, elevators, and cranes. Strong wire ropes help keep workers and equipment safe. The demand for these products is increasing because more buildings, factories, and ships are being made worldwide. Companies in this industry use modern machines to make strong and long-lasting ropes. They follow strict quality rules to ensure safety and reliability. Many companies also work to reduce pollution and waste to protect the environment. Bharat Wire Ropes Limited is an important company in this industry. It supplies high-quality wire ropes in India and other countries.  

Bharat Wire Ropes Limited (BWRL) is a big company in the steel wire and wire rope industry. It makes steel wires, wire ropes, strands, and slings. The company started in 1986 in Mumbai, Maharashtra. It has two large factories. One factory is in Atgaon with a 6,000 MTA capacity. The other is in Chalisgaon with a 66,000 MTA capacity. BWRL sells its products in India and 52+ countries. It supplies Indian Railways, ONGC, BHEL, Coal India, ports, and electricity boards. It also sells to private companies. The company is listed on BSE and NSE. It uses modern machines and strict quality checks. It has many approvals like BIS (eight types), RDSO (four types), ISO 9001:2008, DGMS, and MMD. BWRL has over 1,000 employees and 600+ customers. It is growing every year. The company cares about quality and safety. It follows eco-friendly methods to reduce pollution. BWRL is a trusted company for strong and reliable products. 

Latest Stock News: 

Bharat Wire Ropes Limited’s stock has fallen 7%, currently trading at Rs 174. Over the last year, its share price has dropped 58.8%, from Rs 322.6 to Rs 132.9. Meanwhile, the BSE METAL index has increased by 4% in the same period. 

Despite the recent drop, Bharat Wire Ropes reported a 54.6% rise in annual net profit for FY24, reaching Rs 962 million, with revenue growing 5.6% to Rs 6,218 million. However, in the latest quarter (Q3 FY24), net profit declined 43.6% YoY to Rs 149 million, despite a 2.9% increase in net sales. The company’s Price-to-Earnings (P/E) ratio stands at 12.4 based on the last 12 months’ earnings. 

Potentials: 

Bharat Wire Ropes Limited has a strong chance to grow. It makes wire ropes used in fishing, mining, shipping, oil and gas, elevators, cranes, and construction. Big companies and government groups like Indian Railways, ONGC, BHEL, and Coal India buy from them. The company sells its products in over 30 countries, including the USA, Australia, Singapore, South Africa, Vietnam, and Nepal. It has two large factories. One is in Atgaon, and one is in Chalisgaon, with a high production capacity of 66,000 MTPA. It also has a plant that produces fuel to lower costs. In 2022-23, it bought a 26.72% share in MITCON Solar Alliance Limited. This investment may help the company grow in the solar energy sector. With its strong factories, trusted customers, and growing global sales, Bharat Wire Ropes can become even bigger in the future. 

Analyst Insights: 

  • Market capitalisation: ₹ 1,193 Cr. 
  • Current Price: ₹ 174 
  • 52-Week High/Low: ₹ 331 / 122 
  • P/E Ratio: 16.3 
  • Dividend Yield: 0.00 % 
  • Return on Capital Employed (ROCE): 18.7 % 
  • Return on Equity (ROE): 42.3 % 

Bharat Wire Ropes has grown well in the last five years. Profit increased by 33% every year. The company reduced its debt from ₹610 Cr in 2019 to ₹515 Cr in 2024. It has a good return on equity (ROE) of 42.3% and return on capital (ROCE) of 18.7%. The stock price is at a P/E ratio of 16.3, which is lower than many other companies. But there are risks. Promoters have pledged 48.9% of their shares. The company makes a profit but does not give dividends. The latest profit dropped by 43.57%. The company is taking longer to collect money from customers, as debtor days increased from 37.2 to 46.5. The company has good long-term potential, but there are risks in the short term. Long-term investors can buy at lower prices. Short-term investors should wait. 

SAIL ltd
SAIL Q3 FY25 Results: 66% Profit Decline Despite 5% Revenue Growth – Stock Rises 3.5%

Business and Industry Overview: 

Steel Authority of India Limited (SAIL) is the largest Indian public sector (government-owned) manufacturing corporation with an annual production capacity of 18.29 million metric tons. While the Indian government holds a major stake of about 65% in SAIL, its Maharatna status allows the company to operate with autonomy in financial and operational matters, enabling faster decision-making and business expansion. The company has a total of 692 patents filed under its name globally, out of which 343 have been granted. More than 64% of the 692 patents are active. SAIL has filed the maximum number of patents in India, followed by Egypt and Germany.

SAIL operates five integrated steel plants, each with a rich legacy and global collaborations. Rourkela Steel Plant (RSP) in Odisha is India’s first public-sector steel plant that was set up with German collaboration. Bhilai Steel Plant (BSP) in Chhattisgarh (1959) and Bokaro Steel Plant (BSL) in Jharkhand (1964) were established with Soviet assistance, and it is India’s first Swadeshi steel plant. Durgapur Steel Plant (DSP) in West Bengal (1965) was set up with British collaboration, while IISCO Steel Plant (ISP) in West Bengal, modernized in 2015 with a ₹16,000 crore investment, houses India’s largest blast furnace. 

SAIL also runs special steel plants like Alloy Steel Plant (ASP) in West Bengal, which supplies the Indian Ordnance Factories; Salem Steel Plant (SSP) in Tamil Nadu for stainless and micro-alloyed steel; and Visvesvaraya Iron & Steel Limited (VISL) in Karnataka for high-quality alloy steels. The Chandrapur Ferro Alloy Plant (CFP) in Maharashtra supports steelmaking with ferro-manganese and silico-manganese. Additionally, SAIL Refractory Units (SRU) in Jharkhand and Chhattisgarh ensure a steady supply of refractory materials. With this vast network, SAIL remains a key pillar of India’s steel industry, catering to infrastructure, transportation, and defence. 

India is the second largest steel manufacturer of crude steel in the world, surpassing Japan in 2019; the industry is growing at a very exponential rate of 5% to 7.3%. And for an emerging economy like India, meeting its hard metal requirement is very important, and the steel sector has been a major contributor to India’s manufacturing output. The iron and steel industry in India is projected to grow from $188.5 billion in 2023 to $264 billion by 2032. This would be a compound annual growth rate (CAGR) of 4.30%. SAIL is India’s largest steel-making company, with integrated plants in the eastern and central regions  

Latest Stock News: 

Steel Authority of India Ltd. (SAIL) reported a 66% decline in net profit for Q3 FY5 despite a 5% increase in revenue. Following the earnings announcement, the stock rose by 3.5%, although it remains 41% below its 52-week high, indicating ongoing challenges in the steel market. 

For Q3 FY25, SAIL’s consolidated net profit stood at ₹141.89 crore, a significant drop from ₹422.92 crore in the same quarter the previous year. This decline was primarily due to higher costs and pricing pressures. Comparatively, profit after tax (PAT) saw an 84% plunge from ₹897 crore in Q2 FY25. 

Revenue from operations grew by 5% year-on-year, reaching ₹24,490 crore, up from ₹23,349 crore. However, on a quarter-on-quarter basis, revenue experienced a slight dip of 0.75% from ₹24,675 crore in Q2 FY25. 

At the operational level, SAIL’s earnings before interest, tax, depreciation, and amortization (EBITDA) declined by 5.3% year-on-year to₹2,029.6 crore, down from₹2,142.5 crore in Q3 FY24. The EBITDA margin contracted to 8.3% in Q3 FY25, compared to 9.2% in the same period last year, reflecting increased input costs and pricing challenges. 

Segmental information

  1. Steel Production:  

These segments position SAIL as an integrated steel producer serving diverse industries like infrastructure, railways, automotive, and defence. It has integrated and special steel plants. This includes: 

  • Flat Steel Products: Hot-rolled (HR) and cold-rolled (CR) coils, sheets, galvanized sheets, and plates used in automobiles, construction, and white goods. 
  • Long Steel Products: Rails, structural steel (joists, channels, angles), TMT bars, and wire rods used in infrastructure and construction. 
  • Specialty Steel Products: Stainless steel, alloy steel, and high-quality special steel catering to defence, railways, and engineering sectors. 

2. Mining & Raw Material Production 

SAIL ensures raw material self-sufficiency through its captive mines for iron ore, coal, limestone, and dolomite, reducing dependency on external suppliers and enhancing cost efficiency. 

3. Ferro Alloys & Refractory Products 

  • Ferro Alloys: Production of ferro-manganese and silico-manganese at Chandrapur Ferro Alloy Plant, essential for steelmaking. 
  • Refractory Products: Manufacturing of refractory bricks and materials through SAIL Refractory Units (SRU) to support high-temperature industrial processes. 

4. Value-Added & Downstream Products 

SAIL focuses on high-margin, value-added products, including: 

  • Galvanized and coated steel for automotive and construction applications. 
  • High-tensile and wear-resistant steel for defence and heavy engineering. 

5. Energy & Power Generation:  

To support its energy-intensive operations, SAIL has captive power plants within its steel plants, ensuring energy security and operational efficiency. These business segments position SAIL as an integrated steel producer, catering to diverse industries, including infrastructure, railways, automotive, defence, and manufacturing. 

Subsidiary Information:

Subsidiaries 

  1. SAIL Refractory Company Limited 
  1. Chhattisgarh Mega Steel Limited 

Associate Company: 

  1. Almora Magnesite Ltd 

Joint Ventures 

  1. NTPC-SAIL Power Company Private Limited 
  1. International Coal Ventures Private Limited 
  1. Bastar Railway Private Limited 
  1. SAIL RITES Bengal Wagon Industry Private Limited 
  1. GEDCOL SAIL Power Corporation Limited 
  1. Mjunction Services Limited 
  1. Bokaro Power Supply Company Private Limited 
  1. Bhilai Jaypee Cement Limited 
  1. SAIL Kobe Iron India Private Limited 
  1. SAIL Bansal Service Centre Limited 
  1. Prime Gold-SAIL JVC Limited 
  1. SAIL SCL Kerala Limited  
  1. VSL SAIL JVC 
  1. Romelt SAIL (India) Limited 

Q3 Highlights

  • SAIL’s net profit dropped 66% in Q3 FY25 despite 5% revenue growth. 
  • The stock rose 3.5% post-earnings but is 41% below its 52-week high. 
  • Q3 FY25 net profit is ₹141.89 crore, down from ₹422.92 crore in Q3 FY24. 
  • PAT fell 84% from ₹897 crore in Q2 FY25. 
  • Revenue is ₹23,349  crore, up 5% YoY but down 0.75% QoQ. 

Financial Summary

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 23,349.00 24,490.00 104,448 105,378 
Expenses 21,206.00 22,460 96,410 94,229 
EBITDA 2,142 2,030.00 8,038.00 11,149.00 
OPM 9% 8% 8% 11% 
Other Income 355 393 1,856 665 
Net Profit 423.00 142.00 2,177 3,067 
NPM 1.81 0.58 2.08 2.91 
EPS 1.02 0.34 5.27 7.42 
Tata Steel Q3 Results
Tata Steel Q3 Results: Surprise Profit of ₹327 Crore, Beating Market Estimates

Tata Steel Ltd: Overview 

Tata Steel Ltd, a flagship company of the Tata Group, is one of the world’s largest steel manufacturers with a global presence spanning over 50 countries. Established in 1907, Tata Steel is a pioneer in the Indian steel industry, with its operations encompassing mining, steel production, and distribution. Tata Steel is one of the most diversified integrated steel producers in the world, with an annual crude steel production capacity of 35 MTPA. The Company’s manufacturing assets are spread across India, the Netherlands, the UK, and Thailand. The company’s products serve diverse industries, including construction, automotive, infrastructure, engineering, and consumer goods. 

Tata Steel has been a key player in driving India’s industrial growth and is renowned for its commitment to sustainability, innovation, and operational excellence. The global steel industry is poised for growth, supported by infrastructure development, rising urbanization, and demand for advanced automotive materials. With a production capacity of over 34 million tonnes per annum (MTPA) globally (as of FY25), Tata Steel has an integrated value chain that includes raw material mining, steelmaking, and value-added products. The global steel industry is driven by infrastructure development, urbanization, and demand from the automotive and construction sectors. Tata Steel, with its diversified product portfolio and strong brand equity, is well-positioned to capitalize on these opportunities. The company is also focusing on decarbonization and aims to achieve carbon neutrality by 2045, aligning with global sustainability trends. 

Latest Stock News 

India’s largest blast furnace at Kalinganagar is making great strides, with production steadily ramping up. In December 2024, the plant successfully produced its first annealed coil from the 2.2 MTPA Cold Roll Mill. That same month, the Coke Oven Battery #3A was commissioned, marking another milestone in the 5 MTPA capacity expansions at Kalinganagar. This expansion is set to boost production of high-strength hot-rolled steel, catering to key sectors such as Oil & Gas, Lift & Escalator, and Engineering. Deliveries were higher by 2% and include volumes to UK operations. Excluding transfers to UK, External deliveries were up 7% on QoQ basis. 

Tata Steel’s India operations continue to perform strongly, reporting an impressive EBITDA margin of about 24%, with Indian volumes contributing nearly 70% of total deliveries. The company also invested ₹3,868 crores in capital expenditure during the quarter to further its growth plans. Raw material cost decreased upon cessation of liquid steel production partly offset by higher purchases. Globally, steel prices remained under pressure between October and December 2024. In the U.S., prices dipped by 2%, while in the EU, they fell by around 5%. Meanwhile, raw material prices showed mixed trends—coking coal prices dropped by 7%, settling below $200 per ton, while iron ore prices remained steady, fluctuating between $100 and $110 per ton. 

Business Segments

  • Steel Manufacturing: Tata Steel operates an extensive network of steel plants in India and internationally, producing flat and long steel products. Its advanced manufacturing facilities in Jamshedpur, Kalinganagar, and Angul are benchmarks in productivity and efficiency. The company’s Indian operations contribute significantly to its overall production and profitability. 
  • Mining and Raw Materials: To ensure a stable supply of critical raw materials, Tata Steel has backward integrated operations with captive mines for coal, iron ore, and chrome. These mines are strategically located to support the company’s steel plants, reducing dependency on external suppliers and enhancing cost competitiveness. 
  • International Operations: Tata Steel has a strong international footprint, with operations in Europe (Tata Steel Europe), Southeast Asia, and the Middle East. Tata Steel Europe focuses on high-value products for automotive and construction industries, while the Southeast Asian operations are focused on cost-effective steelmaking for regional markets. 
  • Others: This includes a variety of niche products and solutions, such as automotive maintenance products, waterproofing services, and wood finishes. The company also operates in the animal health and crop care segment through specialty chemicals. 

Subsidiary Information

  • Tata Steel Long Products Ltd: Tata Steel Long Products (TSLP) is a critical subsidiary of Tata Steel, focusing on the production of long steel products that cater primarily to the automotive and construction sectors. These products are essential for infrastructure development and automobile manufacturing, making TSLP a significant contributor to Tata Steel’s portfolio of value-added offerings. With its robust capabilities, TSLP plays an instrumental role in strengthening Tata Steel’s position in the long steel segment, ensuring high-quality solutions for its customers. 
  • Tata Steel Mining Ltd: Tata Steel Mining Ltd. oversees the company’s mining operations, ensuring a steady and reliable supply of key raw materials such as iron ore and ferroalloys for steel production. This vertical integration strategy allows Tata Steel to maintain cost efficiency and reduce dependency on external suppliers. The subsidiary’s operations are vital for supporting the company’s production processes, aligning with Tata Steel’s commitment to operational excellence and raw material security. 
  • Tata Metaliks Ltd: Tata Metaliks specializes in the production of pig iron and ductile iron pipes, catering to the burgeoning needs of India’s water infrastructure and construction sectors. The subsidiary’s products play a crucial role in facilitating the development of water supply systems, urban infrastructure, and housing projects across the country. Tata Metaliks contributes significantly to Tata Steel’s diversified product portfolio, ensuring the company’s presence in niche yet essential market segments. 
  • Tinplate Company of India Ltd: The Tinplate Company of India Ltd. is a leading manufacturer of tin-coated and tin-free steel products, serving the packaging industry. This subsidiary provides high-quality tinplate solutions that are widely used in packaging applications, including food and beverage containers. With a strong focus on quality and innovation, the subsidiary enhances Tata Steel’s value chain and strengthens its presence in the growing packaging sector. 
  • Tata Steel BSL Ltd: Acquired in 2018, Tata Steel BSL Ltd. significantly enhances Tata Steel’s capacity in the flat steel segment, catering to diverse industries such as automotive, consumer durables, and general engineering. This acquisition has enabled Tata Steel to expand its product offerings, address a wider range of customer requirements, and strengthen its market presence. The subsidiary plays a crucial role in supporting Tata Steel’s growth ambitions and delivering high-quality solutions to its customers.  

Q3 FY25 Earnings 

  • Revenue of ₹53648 crore in Q3 FY25 down by 3.01% YoY from ₹55312 crore in Q3 FY24.  
  • EBITDA of ₹2903 crore in this quarter at a margin of 11% compared to 11% in Q3 FY24. 
  • Profit of ₹295 crore in this quarter compared to a ₹522 crore profit in Q3 FY24. 

Financial Summary 

Amount in ₹ Cr Q3 FY24 Q3 FY25 FY23 FY24 
Revenue 55312 53648 243353 229171 
Expenses 49048 47745 211053 206923 
EBITDA 6264 5903 32300 22248 
OPM 11% 11% 13% 10% 
Other Income -33 142 1569 -6005 
Net Profit 522 295 8075 -4910 
NPM 0.9% 0.5% 3.3% -2.1% 
EPS 0.42 0.26 7.2 -3.6