Tata Steel's Strategic Cost Cutbacks Aim to Boost Profit Margins

Tata Steel is set on maintaining its profitability through a cost reduction strategy in the coming quarters of this fiscal year, according to CFO Koushik Chatterjee. The company saw its consolidated net profit soar to Rs 2,007.36 crore during the June quarter despite global economic volatility.

CEO & Md T V Narendran attributed the strong quarterly performance to increased steel realisations and strategic cost cutbacks. The firm managed a sequential improvement in margins by around 200 basis points, demonstrating resilience amid challenging demand and tariff uncertainties.

In the upcoming quarters, Tata Steel plans further cost reductions and anticipates increased revenue, particularly in Europe, while the impact of U.S. tariffs remains negligible due to limited direct exports. The company aims to cut costs by Rs 11,500 crore across geographies, focusing on addressable expenses.

(With inputs from agencies.)