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Tata Steel has reported a robust performance in its second-quarter results for fiscal year 2025, exceeding market expectations with a net profit of ₹758 crore. This marks a significant turnaround from the ₹6,511 crore loss recorded in the same period last year. The company’s strong performance is attributed to improved operational efficiency and margin expansion, highlighting a recovery in profitability. Despite a modest year-on-year decline in revenue, which stood at ₹53,904.7 crore compared to ₹55,682 crore in the previous year, Tata Steel managed to significantly enhance its financial standing.
The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) demonstrated impressive growth, reaching ₹6,141.2 crore. This represents a 44% year-on-year increase from ₹4,267 crore and surpasses the CNBC-TV18 poll estimate of ₹4,976 crore. The improvement in EBITDA is a key indicator of Tata Steel’s enhanced operational efficiency and ability to control costs effectively. Consequently, the EBITDA margin saw a notable improvement, reaching 11.4% compared to the projected 9.3% and the 7.7% recorded in the same period last year.
The positive performance in Tata Steel’s second-quarter results is a testament to the company’s resilience and proactive measures taken to navigate market challenges. The impressive profit figures, coupled with the significant improvement in EBITDA and margin, indicate a strong recovery in the company’s financial health. These results suggest a positive outlook for Tata Steel and reinforce its position as a leading player in the steel industry. Investors and analysts are likely to view this performance favorably, reflecting confidence in the company’s future prospects.
Source: Tata Steel beats Q2 estimates with ₹758 crore profit