Tata Steel has reported that net profit in the March quarter was down 65 per cent at ₹555 crore, against ₹1,566 crore logged in the same period due to lower realisation.

Income dipped 7 per cent to ₹58,863 crore (₹63,131 crore).

The board has declared a dividend of ₹3.60 per share and fixed June 21 as the record date .

EBITDA was down at ₹6,631 crore (₹7,225 crore), while EBITDA per tonne declined to ₹8,735 (₹9,289). The company has made a provision of ₹595 crore for impairment of asset and restructuring.

Of the approved fund raise of ₹3,000 crore, the company has raised ₹2,700 crore through issue of non-convertible debentures and used ₹1,950 crore in the March quarter.

The board has also approved infusion of $2.11 billion (₹17,407 crore) by subscribing to equity shares of T Steel Holdings Pte (TSHP) in FY’25. The company will convert debt instruments of $565 million (₹4,661 crore) held by TSHP into equity shares in this fiscal.

After seven months of discussions with the UK trade unions, Tata Steel will commence closure of heavy end assets in June and proceed with its plan to set up a modern Electric Arc Furnace at Port Talbot by 2027, it said. UK operations reported an EBITDA loss of £34 million on revenue £647 million.

The company will place equipment orders for an Electric Arc Furnace by September and has agreed on the terms of the proposed grant package with the UK government to support the £1.25 billion investment, it said.

Operations in the Netherlands also registered EBITDA loss of at £27 million on revenue of £1,324 million.

The company’s gross debt was at ₹87,032 crore and net debt was ₹77,550 crore after considering cash of ₹9,532 crore on the books.

In FY’24, the company registered a net loss of ₹4,910 crore against profit of ₹8,075 crore in FY’23, as income plunged five per cent to ₹2.31 lakh crore (₹2.44 lakh crore).

TV Narendran, Managing Director, Tata Steel, said the fiscal year was a progress towards stated goal of transition in India and abroad despite the challenging operating environment.

In the UK, he said the company will proceed with the proposed restructuring to a greener steelmaking after considering all the options over the last seven months.

The company has spent ₹4,850 crore as capex in March quarter and₹18,207 crore for the full year, up 29 per cent YoY.