Mumbai, Jan 27 Tata Steel on Monday reported a 43 per cent drop in net profit for the third quarter ended December 31 (Q3 FY25). The company’s net profit stood at Rs 295.49 crore compared to Rs 522.14 crore in the same period a year ago.
Sequentially, the decline was sharper, with net profit falling 61.1 per cent from Rs 758.84 crore in the previous quarter (Q2 FY25), according to company’s exchange filing.
The Tata Group company’s revenue from operations also declined by 2.7 per cent year-on-year, at Rs 53,231 crore for the October-December 2024 quarter compared to Rs 54,727.30 crore in Q3 FY24.
The revenue saw a marginal dip of 2.3 per cent from Rs 54,503.30 crore reported in Q2 FY25, according to its filing.
Total income for the quarter was Rs 53,869.33 crore, a 3 per cent drop compared to Rs 55,539.77 crore in the year-ago period. On a quarter-on-quarter basis, it declined slightly from Rs 54,503.30 crore.
Tata Steel's total expenses for Q3 FY25 stood at Rs 52,118.09 crore, down 2.3 per cent compared to Rs 53,351.13 crore in the same quarter last year. Sequentially, expenses dipped 0.4 per cent from Rs 52,331.58 crore in Q2 FY25.
The decline in expenses was primarily attributed to reduced spending on ‘Employee Benefits Expense’ and ‘Other Expenses’, which significantly dropped by 11.6 per cent to Rs 17,742 crore from Rs 20,074.73 crore a year ago period, as per the company's regulatory filing.
The ‘Employee Benefits’ segment for Tata Steel saw a decline of nearly 7 per cent to Rs 6,072 crore in the third quarter, compared to Rs 6,527 crore in the same period last year.
Tata Steel shares closed 2.77 per cent lower at Rs 126.40 on Monday compared to the previous session’s Rs 130.
The stock has been under pressure, hitting its 52-week low of Rs 122.60 on January 13. In contrast, it reached a 52-week high of Rs 184.60 on June 18. Tata Steel’s market capitalisation as of January 27 stood at Rs 1,57,790.72 crore.
Over the last five years, Tata Steel shares have delivered a remarkable 200 per cent return to investors. However, the stock’s performance in the past year has been subdued, with a decline of 6.26 per cent. On a year-to-date basis, the shares are trading 7.45 per cent lower in 2025.
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