Policy support key for Tata Steel UK: CFO

Economic Times
Economic Times
6h ago 1 view
Tata Steel's UK operations need more government support to achieve cash neutrality. Losses have narrowed but still fall short of management expectations.
Policy support key for Tata Steel UK: CFO
A What happened
Tata Steel's chief financial officer, Koushik Chatterjee, emphasized the need for further policy support from the UK government to help the company's operations achieve cash neutrality. Despite a reduction in losses year-on-year, the performance in the UK has not met management's expectations. The company is actively working on cost-cutting strategies, aiming to save 400 million over two years. In India, Tata Steel is expanding production capacity at various facilities, including Neelachal Ispat and Bhushan Steel. The company plans to increase capacity significantly at these sites, which could enhance overall profitability in the long term.

Key insights

  • 1

    Need for Government Support

    Tata Steel requires UK government intervention to improve financial performance.

  • 2

    Cost-Cutting Measures

    The company aims to save 400 million through cost reductions.

  • 3

    Production Expansion in India

    Tata Steel is increasing capacity at multiple Indian facilities.

Takeaways

Tata Steel's future profitability in the UK hinges on government support and successful cost management, while its Indian operations are set for significant growth.

Topics

Economy Energy