Page 101 - Tata Steel One Report 2024-Eng-Ebook HY

Business Operation and Performance Driving Business Towards Sustainability Corporate Governance Policy Financial Statements Attachments
Management Discussion & Analysis
Business Overview
The Thai economy witnessed a subdued but continued recovery with the GDP expanded 2.5% in 2024 (vs 2023’s 1.9%). Thailand has continued to post a persistent trade deficit despite recoveries in the tourism sector post-Covid.
According to Iron and Steel Institute of Thailand (ISIT), total steel consumption in the country was at 16.3 million Tons in 2024, decreased slightly -0.2% as compared to the previous year’s. Import volume was 11.4 million Tons, at 69.9% of the total demand for steel in Thailand, expanded by 1.7% year-on-year.
The long products consumption in Thailand was 6.23 million Tons, with a marginal increase of 0.6% year-on-year. Import volume was 2.89 million Tons, 46.4% of the total demand for long products in Thailand, increased by 9.9% year-on-year. The bar demand suffered with the construction sector experienced slower activity with significant delay in government disbursements. In addition, intense competition in the market led to the price to remain low. Meanwhile, China steel demand has slowed down from sluggish economy and so in the ASEAN region, which has boosted their exports. This has resulted in a continuous stream of imported goods entering Thailand from China and ASEAN countries, especially wire rod products.
Financial Performance
In the economic backdrop mentioned above, the Company’s consolidated (the group) revenue from sales and related services for the Financial Year 2024-25 (FY25) was Baht 24,981 million, higher than the previous year’s, mainly from higher sales volume. The deliveries were at 1.195 million Tons as against 1.120 million Tons in the previous year. Higher deliveries, as compared to the previous year, were primarily due to higher export sales, partly offset by lower domestic sales, reflecting the ongoing demand situation and intense price competition in the market.
EBITDA increased >100% from the previous year’s to Baht 426 million. Correspondingly, profit for the year registered Baht 333 million as compared to Baht 96 million in the previous year. The profit for the year included a gain from the disposal of unused land of Baht 260 million, but this was not included in EBITDA. In comparison, the profit for the last year included a gain from the disposal of idle assets held for sale of Baht 220 million, not included in EBITDA.
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