Tata Steel Ltd, a pivotal player in the Tata Group’s steel manufacturing sector, recently unveiled its financial results for the first quarter of the fiscal year 2024-25. The company witnessed an impressive 117% increase in consolidated net profits, soaring to ₹1,201 crore, compared to ₹554.56 crore from the same period last year. Despite this significant profit jump, Tata Steel experienced a decline in core revenue, raising questions about its operational efficiency.

Core Revenue Decline Amid Profit Growth

In the latest quarter, Tata Steel’s core revenue from operations dipped by 4.2%, totaling ₹56,218 crore against ₹58,687 crore from the previous year. This drop in revenue is attributed to sluggish performance in its key markets, Tata Steel India and Tata Steel Europe, both of which reported reduced revenues.

• Total Expenses: The company managed to reduce its total expenses by 4.1%, bringing them down to ₹56,218 crore compared to ₹58,687.31 crore year-on-year. This strategic cost-cutting has helped mitigate the impact of falling revenues.

Dividend Announcement for Shareholders

In a move to reward its investors, Tata Steel’s board declared a 360% dividend, equating to ₹3.60 per equity share with a nominal value of Re 1. This dividend will be issued to shareholders for the financial year 2024-25.

• Record Date: The company has set June 6, 2025, as the record date for determining eligible shareholders for the dividend payout. The dividend is expected to be disbursed within five days following the Annual General Meeting (AGM).

Stock Performance Insights

Following the announcement of its quarterly results, Tata Steel’s shares surged by 6.16%, closing at ₹151.55—up from ₹142.75 the previous session. Over the past five years, investors have enjoyed remarkable returns of over 450% on their investments in Tata Steel. However, the stock has seen a 7.51% decline over the past year.

• Year-to-Date Performance: Year-to-date, the shares have appreciated by 10.82%, with a notable increase of 6.58% in the last week alone.
• 52-Week Range: The stock reached a 52-week high of ₹184.60 on June 18, 2024, while the lowest point was ₹122.60 on January 13, 2025, according to data from BSE.

This juxtaposition of profit growth alongside declining revenues raises important questions about Tata Steel’s future strategies in optimizing operations and enhancing shareholder value. As the company navigates these challenges, its focus on cost management and shareholder returns will be crucial in sustaining its market position.