Q2FY24 performance: Cautious near-term outlook for Tata Steel stock

The UK operations suffered from low steel prices as well as higher costs on the emission rights front

The operational performance of Tata Steel in Q2FY24 can be interpreted in several ways. There was an acceptable domestic performance in India but there continues to be concerns about the Europe business and that overshadows the local performance.

The consolidated revenues for the Q2FY24 stood at Rs 55,682 crore with an operating profit of Rs 4,315 crore and an operating profit margin of 8 per cent. The revenues were down 7 per cent year-on-year (Y-o-Y) and down 6.5 per cent quarter-on-quarter (Q-o-Q). The margin dropped from 11 per cent (Y-o-Y and Q-o-Q). Operating profit was down 29.5 per cent sequentially and