Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Q3 FY2025 Earnings Presentation
35 slides from Tata Steel's earnings presentation, Jan 27, 2025
Slide 1: Submission of Investor Presentation cover letter to stock exchanges
January 27, 2025 The Secretary, Listing Department The Manager, Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th Floor, Plot No. C/1, Dalal Street, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 001. Mumbai - 400 051. Mah
Slide 2: Tata Steel Results Presentation, Quarter ended 31st December 2024
Tata Steel Results Presentation Financial quarter ended 31st December 2024 Dalma Viewpoint at Jamshedpur, Municipal solid waste dump transformed into a lush green picnic area January 27, 20251
Slide 3: Safe harbour statement
Safe harbour statement Statements in this presentation describing the Company’s performance may be “forward looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred or implied. Imp
Slide 4: We are committed to 'Zero Harm'
We are committed to ‘Zero Harm’ Journey towards excellence in Safety & Health of employees1 Safety & Health Excellence Recognition Behavior-based program “5 Safe steps Forward” campaign to for online purging assistance improve safety awareness at shop floors model that ensures zero high potential ri
Slide 5: Improving quality of life of our communities
Improving quality of life of our communities Social capital and scalable change models to enable deep societal impact Rural and Urban Public Health and Grassroots Tribal Education Nutrition Sports Identity 36 lakh+ lives impacted1 96% redressal rate 22,000+ out of school 27,000+ children 44,000+ peo
Slide 6: Strategic Update
Strategic Update ➢ India’s largest blast furnace at Kalinganagar is ramping up well ➢ 1st annealed coil from the 2.2 MTPA Cold Roll Mill produced in December 2024 ➢ Structural transformation underway at UK operations ➢ Became 1st Indian steelmaker to introduce biochar in blast furnace to lower carbo
Slide 7: Tata Steel is focused on creating sustainable value
Tata Steel is focused on creating sustainable value Leadership in Leadership in Leadership in Sustainability India technology and digital Consolidate position Leadership Robust in Become as global cost India financial future leader health ready 3QFY2025 Results Presentation 6
Slide 8: Sustainability is at the core of our strategy
Leadership in Sustainability Sustainability is at the core of our strategy Route and pace of decarbonisation being calibrated across geographies Our ESG goals underpin broader focus areas, and we emissions by 2045 collaborate with reputed global bodies for policy advocacy Committed to responsible gr
Slide 9: India: Pursuing multiple initiatives for a sustainable future
Leadership in Sustainability India : Pursuing multiple initiatives for a sustainable future Carbon emission reduction underway Broader initiatives to conserve water, preserve nature via multiple levers and drive circularity Process improvement such as >60% reduction in specific water improvement in
Slide 10: UK: Pursuing transition to reduce 50 mn tons CO2e over a decade
Leadership in Sustainability UK: Pursuing transition to reduce 50 mn tons CO2e over a decade Multiple intiatives to aid Journeying towards a sustainable future affected employees EAF to be operational by 2027 - 28 Voluntary Redundancy Aspiration, generous support package Transition Board setup with
Slide 11: Netherlands: Committed to achieve 35-40% CO2e reduction by 2030
Leadership in Sustainability Netherlands: Committed to achieve 35 – 40% CO2e reduction1 by 2030 Commenced discussions with the Dutch government Collaborating with diverse partners for decarbonisation support to drive sustainability Government support is key Partnership with Ecolog to create a H2 sus
Slide 12: India steel remains a bright spot aided by the economic growth cycle
Leadership in India India steel remains a bright spot aided by the economic growth cycle India steel per capita consumption is at an Domestic demand to be driven by wide range of factors inflection point China 136 >200 ASU Per Capita (kg), 2023 628 million tons in million tons in FY2024 FY2030e Japa
Slide 13: Tata Steel is scaling up in India to capitalise on growth opportunity
Leadership in India Tata Steel is scaling up in India to capitalise on growth opportunity Investments set to drive sector leading returns Dominant Flats (A) ~21.2 MTPA* ~27 MTPA manufacturing base 40 + Longs (B) ~5.4 MTPA ~13 MTPA Brownfield optionality across multiple sites 0.85 Crude Steel ~26.6 M
Slide 14: Multi-pronged strategy to enable leadership in chosen segments
Leadership in India Multi-pronged strategy to enable leadership in chosen segments Customer centricity and innovation to drive evolution of product mix Status of ongoing project Application / Product ▪ Ramp up to rated capacity underway Capacity expansion ▪ Additional hi-strength hot rolled steel fo
Slide 15: Embracing Digital and Technology to create and unlock value
Leadership in technology & digital Embracing Digital and Technology to create and unlock value 7-layer architecture© for digital transformation AI, key enabler of Business Excellence Manufacturing Excellence AI ▪ Business focused and KPI driven MICRO ▪ AI assisted Exception management & Business ▪ 5
Slide 16: Focus on consolidating position as a global cost leader
Consolidate position as global cost leader Focus on consolidating position as a global cost leader Structural transformation in progress at UK ▪ Cost improvement measures across geographies Since Sep’23, UK fixed cost base has declined by around 20% or £69 per ton Fixed cost base per ton of deliveri
Slide 17: Financial Management to enable returns across cycle
Robust financial health Financial Management to enable returns across cycle Balance sheet management Capital allocation Operational excellence » Optimise Capital Structure & Cost » Portfolio restructuring » Minimise working capital Target Net debt to EBITDA < 2.5 – 3.0x Value accretive investments »
Slide 18: Becoming culturally future ready
Become future ready Becoming culturally future ready Initiatives to reach new #India’s First-ever All-Women Shift level of excellence in iron ore mine Talent Preparedness Focus on Fostering a for growth to productivity and Future Ready 40 MTPA restructuring Culture ✓ Talent integration ✓ Cost ✓ Cult
Slide 19: Business Update
Business Update ➢ Consolidated Adj. EBITDA at Rs 7,155 crores, which translates to a margin of 13% ➢ India EBITDA margin at around 24% ➢ India volumes make up close to 70% of total deliveries ➢ Capital expenditure for the quarter was Rs 3,868 crores 3QFY25 Results Presentation 18
Slide 20: Elevated China exports and slowdown in key regions weigh on spreads
Elevated China exports and slowdown in key regions weigh on spreads ▪ Global steel prices were subdued across key regions ▪ Raw material prices diverged during the quarter. Coking between Oct – Dec’24. US steel prices were down 2% coal prices declined by 7% to below $200/t while Iron ore while EU st
Slide 21: India steel demand continued to grow while EU demand was subdued
India steel demand continued to grow while EU demand was subdued India Europe ▪ India apparent steel demand continued to grow but the ▪ In the EU, steel consuming sectors have been adversely momentum eased. Manufacturing PMI fell to 12-month impacted by subdued demand dynamics and steady low in Dece
Slide 22: India sales were 'best ever 3Q'
India sales were ‘best ever 3Q’, up 4% QoQ and 8% YoY Tata Steel India deliveries (mn tons) End use sectors (mn tons) 9MFY24 9MFY25 % YoY 14.5 15.3 6% Auto and Retail : Individual Construction & ancillaries housebuilders Infrastructure Domestic Exports 1.3 1.3 1.2 1.2 1.2 1.1 5.3 5.1 0.8 0.9 4.9 0.8
Slide 23: Auto: Consolidating the position of Preferred Steel Supplier
Auto: Consolidating the position of “Preferred Steel Supplier” ▪ Enriched product offerings for ▪ Focus on enhancing downstream evolving customer requirements processing capabilities Share of hi-end Share of processed products in Auto sales products in Auto sales 75% 26% FY2023 FY2024 9MFY25 FY2023
Slide 24: Poised to double in retail & shaping construction via ready-to-use solutions
Poised to double in retail & shaping construction via ready-to-use solns. ▪ Tata Tiscon Retail sales had best- ▪ Leveraging physical & virtual reach via Create your dream home today! ever quarterly sales Aashiyana, an e-commerce platform for Visit www.Aashiyana.tatasteel.com Consistent growth across
Slide 25: Tata Steel Consolidated
Tata Steel Consolidated (All figures are in Rs. Crores Key drivers for QoQ change: 3QFY25 2QFY25 3QFY24 unless stated otherwise) Production (mn tons)1 7.77 7.69 7.58 ▪ Revenues: were broadly stable, higher volumes in India Deliveries (mn tons) 7.72 7.52 7.15 were offset by drop in realisations acros
Slide 26: Consolidated 3QFY25 EBITDA stood at Rs 7,155 crores
Consolidated 3QFY25 EBITDA1 stood at Rs 7,155 crores 1,376 ▪ Selling Result: primarily driven by lower 88 - realisations across geographies 1,884 2,052 ▪ Cost Changes: primarily driven by closure of 7,155 heavy end assets in UK and decline in coking coal consumption cost across geographies 5,522 ▪ V
Slide 27: Net debt stood at Rs 85,800 crores
Net debt stood at Rs 85,800 crores 226 233 465 99,392 98,919 13,119 85,800 Gross Debt Movement in Loan FX Impact Gross Debt Cash, Bank & Net Debt Sep'24 leases movement and Others Dec'24 Current Dec'24 Investments 3QFY2025 Results Presentation 26
Slide 28: Key financial credit metrics
Key financial credit metrices EBITDA Margin (%)1 EBITDA / ton (Rs.)1 Interest Coverage Ratio (x)1,2 Gross & Net Debt (Rs crores) 26.2% 21,626 11.7 1,16,328 98,919 19.8% 88,501 84,893 87,082 1,04,779 75,561 11,358 85,800 5.2 77,550 13.4% 7,962 8,414 75,389 12.2% 10,838 4.1 67,810 11.7% 6,267 3.5 10.2
Slide 29: Annexures
Annexures Vision for tomorrow’s 3QFY25 Results mining spaces - Naxtra Park spanning 12,500 m2 at one of our mining site in India Presentation 28
Slide 30: Tata Steel Standalone: Key operating parameters
Tata Steel Standalone : Key operating parameters Coke Rate (kg/thm) Specific Energy Consumption (Gcal/tcs) Specific Fresh Water Consumption (m3/tcs) Good Good Good 365 5.95 357 355 3.20 348 5.85 339 2.84 2.74 2.44 5.76 2.29 5.68 5.63 FY21 FY22 FY23 FY24 9MFY25 FY21 FY22 FY23 FY24 9MFY25 FY21 FY22 FY
Slide 31: Tata Steel Standalone
Tata Steel Standalone1 (All figures are in Rs. Crores Key drivers for QoQ change: 3QFY25 2QFY25 3QFY24 unless stated otherwise) Production (mn tons) 5.41 5.06 5.13 ▪ Total Revenues: were marginally higher primarily Deliveries (mn tons) 5.29 5.11 4.88 driven by higher volumes despite drop in realisat
Slide 32: Tata Steel UK and Netherlands: Key operating parameters
Tata Steel UK and Netherlands : Key operating parameters TSUK TSUK TSN Coke Rate (kg/thm) Specific Energy Consumption (GJ/tcs) CO2 Emission Intensity (tCO2/tcs) Good Good Good 340 337 324 311 23.3 23.1 23.1 22.8 2.18 2.16 300 2.15 2.14 298 20.9 20.4 20.2 19.5 291 18.5 284 1.81 1.78 1.77 1.76 279 1.7
Slide 33: Tata Steel Netherlands
Tata Steel Netherlands (All figures are in Rs. Crores Key drivers for QoQ change: 3QFY25 2QFY25 3QFY24 unless stated otherwise) Liquid Steel production (mn tons) 1.76 1.66 1.19 ▪ Deliveries: were higher by 2% and include volumes to UK operations. Excluding transfers to UK, External Deliveries (mn to
Slide 34: Tata Steel UK
Tata Steel UK (All figures are in Rs. Crores Key drivers for QoQ change: 3QFY25 2QFY25 3QFY24 unless stated otherwise) Liquid Steel production (mn tons) - 0.39 0.72 ▪ Revenues: declined on lower deliveries as well as drop in realisations due to subdued demand dynamics Deliveries (mn tons) 0.57 0.63
Slide 35: Tata Steel Investor Relations
Tata Steel Investor Relations Investor enquiries ir@tatasteel.com Building bridges – Steel supplied for City Footbridge in South Wales, UK