The company's board recommended a dividend of Rs 3.60 per share.
Tata Steel Q4 FY24 Highlights (Consolidated, YoY)
In the fourth quarter of fiscal year 2024, Tata Steel reported a decline in revenue by 6.8% to Rs 58,687 crore.
EBITDA also witnessed a decrease of 8.6% to Rs 6,601 crore.
Consequently, margins contracted to 11.2% from 11.5%.
Net profit took a hit, plummeting by 64.6% to Rs 555 crore, falling short of the Bloomberg Estimate of Rs 892 crore.
Additionally, the company faced an exceptional loss of Rs 598 crore, attributed to the surrender of the Sukinda Chromite Block in Odisha and the restructuring of its European operations.
Tata Steel has given the green light for the issuance of additional debt securities, totalling Rs 2,700 crore, through one or more tranches.
Announcement of NCDs
These securities will be in the form of Non-Convertible Debentures (NCDs) and will be offered on a private placement basis.
Overseas investment
Further Tata Steel has also proposed to inject funds amounting to up to $2.11 billion (approximately Rs 17,408 crore) into Tata Steel Holding Pte. Ltd. (TSHP) through equity subscription.
The intended purpose of this fund infusion is to enable TSHP to repay its current external debt held by offshore entities and to provide financial support for restructuring expenses at Tata Steel UK Ltd.
T Steel Holdings Pvt. Ltd. (TSHP) is a wholly owned subsidiary of Tata Steel, established in Singapore. Tata Steel uses TSHP as a vehicle for its investments in overseas ventures, routing its investments into international businesses through this entity.