Moody's maintains stable outlook for Tata Steel

4 septembre, 2024 par
Administrator

The international rating agency Moody's has maintained a stable outlook on Tata Steel, expecting the domestic steel major to improve its earnings over the next two financial years, according to a report of the rating agency on Thursday, August 29. "The rating affirmation and stable outlook reflect our expectation that the structural improvement in Tata Steel's earnings over the next two years will mitigate the risks associated with new state taxes on mining activities in India and developments at its operations in Europe, amid challenges in the broader steel sector," it said in the report.

Further, the rating agency expects the addition of 5 million mt per year of production capacity at Kalinganagar steel mill in Odisha will gradually lift Tata Steel's steel deliveries in India to around 23 million mt in 2025-26 from 20 million tonnes in 2024-25.

The profitability at the Netherlands plant will recover following losses incurred in FY24 from operational disruptions due to a relining of its blast furnace. Losses at its UK operations will also recede after the shutdown of its loss-making blast furnaces, Moody's said.

Read more: India's Tata Steel acquires additional equity in Singapore based affiliate

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