Focus on safety, efficiency, cash flows key to Tata Steel’s future: Chairman N Chandrasekaran

Tata Steel’s 118th Annual General Meeting

Jamshedpur, July 2: Tata Steel held its 118th Annual General Meeting (AGM) on July 2, where the company’s Chairman addressed shareholders with a comprehensive overview of the company’s performance, challenges, and strategic direction. The meeting opened on a solemn note, acknowledging recent losses within the Tata Group and paying tribute to significant figures whose contributions shaped the company.

“There is a lot to talk about today,” said the Chairman. “But I must begin by acknowledging the heavy loss we have felt in recent months. Across the entire Tata Group, we honour those who lost their lives, along with all the families and loved ones affected by the Air India Flight 171 tragedy.”

He also remembered the passing of former Chairman Ratan Tata, whose leadership and legacy continue to guide the company. “Late last year, we also bid farewell to Mr. Tata. His unwavering commitment has been pivotal in transforming Tata Steel into a global steel company. Under his stewardship, the company not only grew in size and scale but reaffirmed its core values and responsibilities. He was a friend and someone whose guidance I sought, whose humanity I admired, and whose focus on the importance of details I will always carry with me. He will be dearly missed.”

Navigating Global Uncertainty, India’s Strength

Speaking on the macroeconomic landscape, the Chairman noted, “The macro narrative in 2025 has been shaped by rising geopolitical uncertainties and shifting trade dynamics. As a result, global GDP growth is projected to slow to 2.3% from 2.8% in 2024.”

However, he pointed out India’s resilience amid global volatility. “Despite this uncertainty, India continues to outperform, with estimated GDP growth of 6.5% in fiscal 2025. This is supported by strong demographic fundamentals, prudent economic management, and a series of structural reforms that have created a favourable environment for consumption and private investment.”

Steel Industry Trends and Tata Steel’s Performance

Global steel production remained steady at 1.8 billion tonnes, even as persistent supply chain issues and subdued international prices impacted margins. In India, the industry saw a 4.7% rise in crude steel output and a 10.2% increase in consumption year-on-year, driven by robust construction activity and urban and industrial growth.

Tata Steel, the Chairman said, achieved record performance on both standalone and consolidated levels. “This was made possible by near full capacity utilisation across sites and the successful commissioning of India’s largest blast furnace at Kalinganagar,” he stated. He also highlighted the strong performance of Neelachal Ispat Nigam Limited, which recorded ₹1,000 crore in EBITDA and positive free cash flows.

Green Steel Transition in the UK and Europe

In the UK, Tata Steel took decisive steps towards sustainable steelmaking by decommissioning two blast furnaces at Port Talbot. “This paves the way for our transition to Electric Arc Furnace-based steelmaking by fiscal 2028, supported by £500 million from the UK Government,” the Chairman confirmed.

In the Netherlands, discussions are underway with the Dutch Government to secure financial and policy-level support for Tata Steel’s decarbonization initiatives. Additionally, the company has launched a cost transformation program targeting €500 million in savings by fiscal 2026. “These efforts are part of our vision to make Tata Steel Nederland one of Europe’s most efficient and sustainable steelmakers,” he added.

Strategic Priorities Going Forward

Outlining the company’s strategic roadmap, the Chairman said, “Going forward, we need to continue to focus on our safety culture, cost competitiveness, and operating efficiencies across geographies.”

He further emphasized Tata Steel’s twin goals: growth in India and transformation in Europe. “Given our ambition, we must keep building capabilities to execute large and complex capital projects,” he said. “We will also maintain a sharp focus on cash flows to ensure a healthy balance sheet that prepares us well for the future.”

Financial Highlights and Dividend Announcement

On a consolidated basis, Tata Steel’s crude steel production reached 30.92 million tonnes, while deliveries grew to 30.96 million tonnes—marking year-on-year growth of 3.3% and 5.3%, respectively. Total revenue stood at ₹2,18,543 crore, and EBITDA rose by 10% to ₹25,802 crore.

Consolidated profit after tax was ₹3,174 crore, while operating cash flows increased by 16% to approximately ₹23,500 crore. “This provides us with the financial strength to continue investing in our strategy and future growth,” the Chairman noted.

The Board of Directors has recommended a dividend of ₹3.60 per equity share for FY 2025.

In closing, the Chairman thanked shareholders and the Board for their continued support. “I want to thank all the Board of Directors and you, our shareholders, for your trust and encouragement. Thank you very much.”