Tata Steel Credit Metrics to Improve in FY25: CreditSights

By By Rediff Money Desk, New Delhi
Jun 03, 2024 15:42
CreditSights expects Tata Steel's credit metrics to improve in FY25, driven by robust EBITDA growth and lower capex. The ratings firm anticipates strong domestic steel demand and lower coking coal prices.
Photograph: Ajay Verma/Reuters
New Delhi, Jun 3 (PTI) Ratings firm CreditSights on Monday said it expects the credit metrics of Tata Steel to improve in the ongoing fiscal aided by factors like infrastructure-led domestic steel demand and lower coking coal prices.

Tata Steel last week reported a 64.59 per cent decline in consolidated net profit at Rs 554.56 crore for the March quarter from Rs 1,566.24 crore in the year-ago period, mainly on account of lower realisations and expenses on certain exceptional items.

In a report, CreditSights -- a FitchSolutions company -- said it expects Tata Steel's credit metrics to improve meaningfully in FY25, with net leverage projected to improve, driven by robust EBITDA growth and lower capex.

"We expect total FY25 EBITDA to grow robustly year-on-year in the mid 20 per cent range, supported by robust infrastructure-led domestic steel demand, very slight recovery in steel price realizations aided by robust domestic demand...lower coking coal input costs that could offset higher iron ore input costs," CreditSights said.

It also said Tata Steel's annual results "were less poor than we feared".

Revenues and EBITDA fell 6 per cent and 27 per cent year-on-year, respectively, as continued losses from Europe and higher operating expenses outweighed strong India revenues and lower coking coal input costs, the ratings firm added.
Source: PTI
Read More On:
tata steelcreditsightsfy25credit metricssteel demandcoking coalebitdacapexinfrastructuresteel prices
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.

You May Like To Read

MORE NEWS

Farm-to-Fork Price Gap: Govt to Set Up Committee

India's Agriculture Minister announces committee to address the vast price difference...

Rabi Crop Output Target: India Aims for Record...

India aims for record foodgrain production in the 2024-25 rabi season despite...

HDFC Bank to Sell Shares in HDB Financial...

HDFC Bank approves the sale of Rs 12,500 crore worth of shares in its subsidiary HDB...

Dalmia Bharat Q2 Profit Down 60.2% to Rs 49 cr

Dalmia Bharat's net profit declined by 60.16% to Rs 49 crore in Q2 FY25 due to falling...

Punjab & Sind Bank Q2 Profit Surges 26% to Rs...

Punjab & Sind Bank's net profit jumped 26% to Rs 240 crore in Q2 FY25, driven by a...

uBreathe Raises Rs 24 Cr for Air Purifier Growth

Biotech startup uBreathe aims to raise Rs 24 crore to expand its air purifier product...

Vedanta to Invest Rs 1 Lakh Cr in Rajasthan:...

Vedanta plans to invest over Rs 1 lakh crore in Rajasthan across zinc, oil & gas, and...

UCO Bank to Raise Rs 2,000 Cr via QIP in Q3 |...

UCO Bank plans to raise Rs 2,000 crore through a qualified institutional placement...

UCO Bank Profit Jumps 50% to Rs 603 Cr in Q2

UCO Bank reported a 50% surge in net profit to Rs 603 crore in Q2 FY25, driven by...

UCO Bank Q2 Net Profit Jumps 50% to Rs 603 Crore

UCO Bank's net profit surged by 50% to Rs 603 crore in the second quarter, driven by...

Read More »

Sectoral Indices Market Indicators Listed Companies Gainers Losers Mutual Funds Portfolio Watchlist
© 2024 Rediff.com