Tata Steel receives ₹1,000 crore tax notice, Infra News, ET Infra
1 min read
Tata Steel receives ₹1,000 crore tax notice
The notice, originating from the Office of the Commissioner (Audit), suggests breaches of the GST Act. While the company has proactively settled ₹514.
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Mint
16 minutes ago
- Mint
Tata Steel eyes net profit at UK unit this fiscal: N Chandrasekaran
Mumbai: Tata Sons chairman N. Chandrasekaran has set a new goal for Tata Steel Ltd chief executive and managing director T.V. Narendran: to deliver net profit from the company's UK operations in the current fiscal year. Addressing shareholders at Tata Steel's annual general meeting on Wednesday, Chandrasekaran, who also chairs the steelmaker, said the aim was for the UK operations to achieve net profitability this fiscal year. 'I feel that UK should be PAT (profit after tax) positive, so the company is working towards making it profitable,' said Chandrasekaran, echoing shareholder concerns. 'We expect UK this year to perform much better than last year and it will definitely be Ebitda positive.' To be sure, Narendran had said in an analyst call in May that the UK business was expected to be earnings before interest, taxes, depreciation, and amortization (Ebitda) positive. 'We are pursuing the goal of ensuring, on an underlying basis, Tata Steel UK becomes Ebitda positive and sustaining from a cashflow point of view,' he had said during the post-earnings interaction on 13 May. Tata Steel UK follows a downstream-focused model, importing semi-finished steel substrates from its operations in India and the Netherlands—or sourcing them from the open market at lower cost—and processing them at its UK mills. The shift to profitability, analysts believe, has been aided by a strategic move to shut down its loss-making blast furnace. The company reported a consolidated profit of ₹ 1,201 crore in January-March, more than doubling from the same period last year. This was after losses in the Netherlands and the UK offset the company's profitable operations in India. Tata Steel's standalone operations in India logged a net profit of ₹ 3,141 crore during the quarter, 19% less than the same period a year ago due to lower steel prices. 'It is possible for Tata Steel's UK business to break even because they have shut down their blast furnace,' said Rohit Sadaka, director at India Ratings & Research. 'There will be a significant reduction in fixed cost overheads along with reduced losses.' Tata Steel acquired the European operations of Corus Group for £6.2 billion (around $12 billion) in 2007. Since then, its UK business has struggled with legacy costs and sluggish demand in Europe. Under Narendran, the company has pursued a range of restructuring efforts to revive its European operations. These include layoffs, cost rationalization, and a pivot to more efficient electric arc furnace (EAF) technology. According to a report by ICICI Direct, the company is 'undergoing significant restructuring at its European operations aimed at improving profitability.' In the UK, Tata Steel is building a 3.2 million tonnes per annum (MTPA) EAF facility, expected to be commissioned by 2027, with £500 million in support from the UK government as part of a total capex of £1.25 billion. Meanwhile, in the Netherlands, the company plans to replace one of its two blast furnaces with a direct reduced iron (DRI) and EAF setup by 2030 as part of its broader green steel transition. Tata Steel has also launched a company-wide cost transformation programme targeting savings of ₹ 11,500 crore in FY26. This includes ₹ 4,000 crore from Indian operations, ₹ 4,500 crore from the Netherlands, and ₹ 3,000 crore from the UK. Capex plans for the current fiscal stand at ₹ 15,000 crore, earmarked for plant maintenance, capacity expansion, European restructuring, replication of EAF projects in western and southern India—including the one in Ludhiana—and the acquisition of mining assets to support raw material security. Shares of Tata Steel rose 5.8% on Wednesday to close at ₹ 165.88 on the National Stock Exchange.
Hans India
22 minutes ago
- Hans India
Trade Setyp for July 3: Nifty slips below 25,500: Stocks to watch tomorrow
The Nifty 50 index opened higher on July 2 but soon faced heavy selling pressure, shedding 230 points from its intraday high of 25,608. Despite a late-session recovery attempt, the index closed 88 points lower at 25,453, slipping below the crucial 25,500 mark. Financial stocks remained under pressure, contributing significantly to the decline. Top gainers included Tata Steel, JSW Steel, and Asian Paints, while Shriram Finance, HDFC Life, and IndusInd Bank were among the top losers. The Nifty Midcap 100 dropped 0.14% and the Nifty Smallcap 100 fell 0.41%, reflecting broader profit-booking. Sector-wise, metals, consumer durables, and healthcare showed resilience, while realty, financial services, and PSU banks dragged the market lower. Foreign Institutional Investors (FIIs) remained net sellers, while Domestic Institutional Investors (DIIs) absorbed the pressure as net buyers. Analysts suggest immediate support at previous swing highs of 25,317 and 25,222. Nandish Shah of HDFC Securities identifies the 25,640–25,740 range as a resistance band. Rupak De of LKP Securities highlighted the importance of the 25,300 level, aligning with the 38.2% Fibonacci retracement zone. A decisive move above 25,500 could indicate short-term recovery, while a breach below 25,300 may deepen the correction phase. Stocks to Watch on July 3: Hindustan Zinc: Q1 mined metal output up 1% YoY at 265 kt; saleable metal and refined zinc production down sequentially and annually. Nestle India: Commissions new ₹105 crore Maggi noodles line at Sanand, Gujarat. Aurobindo Pharma: Subsidiary secures European Commission approval for Dazublys. RVNL: Appoints Chandan Kumar Verma as CFO effective July 2. Voltas: Receives ₹265.25 crore GST demand notice for FY19–FY21. Coromandel International: Gets CCI clearance to acquire 53.13% stake in NACL Industries. Indian Bank: Reduces MCLR by 5 basis points for most tenures, effective July 3.
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Business Standard
an hour ago
- Business Standard
Tata Steel expects UK unit to turn EBITDA-positive in FY25 amid green shift
Tata Steel's UK operations—which have largely struggled since acquisition—are expected to turn EBITDA-positive in the current financial year and possibly profitable by the next, according to the company's chairman. Responding to shareholder queries at Tata Steel's annual general meeting (AGM), N Chandrasekaran, chairman of Tata Steel and Tata Group, said, 'We expect the UK to perform much better this year compared to last year—it will definitely be EBITDA-positive.' He added that the company was working towards making it PAT-positive. 'Losses in the UK will be wiped out. And going forward, this year or the next year, it will become PAT-positive,' he said. Tata Steel is transitioning to green steelmaking by shifting to electric arc furnace (EAF)-based steelmaking from blast furnaces at Port Talbot in Wales. The transition is slated for completion by FY28. The total investment in the project is £1.25 billion, including £500 million in support from the UK government. Groundbreaking for the project is expected in the first half of July. The blast furnaces have already been decommissioned, and the company is currently supporting downstream client businesses by sending slabs from India, the Netherlands, and the open market. In the Netherlands, the company is in discussions with the Dutch government for financial and policy-level support for its decarbonisation plan, Chandrasekaran said. He also gave an overview of Tata Steel's capital expenditure plans. 'Broadly, Tata Steel spent around ₹15,000 crore last year and will continue in the same range this year,' he said, adding that the spend is expected to remain at that level 'for quite some time'. Capex will be allocated to maintenance as well as Indian expansion projects over the next 7–8 years. The EAF in Ludhiana will be completed by the end of the current year. 'We will replicate similar 0.5 mt projects in the rest of India,' Chandrasekaran added. The investment in the UK will begin shortly, and once the decarbonisation plan in the Netherlands is approved, capex will also be allocated there. Tata Steel has set a target of achieving 40 million tonnes (mt) of capacity in India. On the timeline, Chandrasekaran said, 'There is no doubt in our mind that we have to expand capacity.' However, he added, 'We also need to see how many projects can be executed at any point in time. We need to ensure that our investment matches the cash flow.' Tata Steel will also invest in acquiring mining assets. 'Our iron ore mine capacity in India will come up for renewal and be auctioned again in FY30. With our increased footprint, we will need to increase our capacity. So we will always look for opportunities,' he said. Addressing questions on the market environment, Chandrasekaran noted that China continues to export about 100 mt of steel. 'That is definitely affecting overall steel prices—not only in global markets but also in India,' he said, adding that despite the safeguard duty, steel prices remained soft. Nevertheless, based on overall performance, increased capacity, and current spread levels, Tata Steel expects to post better revenues, EBITDA, profits, and cash flow in FY26 than in FY25. On grievances, safety, and customer complaints Responding to shareholder queries on grievances, sexual harassment cases, and customer complaints, Chandrasekaran said Tata Steel aims to resolve any issue raised within a maximum of 90 days. 'The fact that complaints are coming is something we want to encourage, because we want a culture where people are able to speak up with the hope that their complaints will be taken up and resolved. That is one reason the numbers are going up,' he said. On customer complaints, he noted that Tata Steel's entry into the retail segment has increased the volume of complaints, as these tend to be higher in B2C businesses compared to B2B.
