Friday, September 30, 2022

Tata Steel reports highest ever consolidated EBITDA at Rs 63,830 cr

Tata Steel India achieved highest ever annual crude steel production of 19.06 million tons

The 6 MnTPA Pellet plant at Kalinganagar will be commissioned in 3QFY23

Jamshedpur: Tata Steel today announced its Financial Results for the quarter and financial year ended March 31, 2022.

The Company’s consolidated reported profit after tax (PAT) for the March 2022 quarter rose to Rs 9,835 cr as compared to Rs 7,162 cr of the corresponding quarter of the last fiscal. For the full year ended March 31, 2022, the Company’s PAT rose to Rs 41,749 cr, significantly higher than Rs 8,190 cr reported in the last financial year.

The consolidated Turnover for FY22 stood at Rs 243,959 cr as compared to Rs 156,477 cr of the previous fiscal. Consolidated turnover for the fourth quarter ended March 31, 2022 stood at Rs 69,324 cr as compared to Rs 50,028 cr in the corresponding quarter of the last financial year.

The Board of Directors recommends a dividend of Rs. 51 per fully paid equity share and Rs 12.75 per partly paid equity shares. A 10:1 stock split is also recommended.

T. V. Narendran, Chief Executive Officer & Managing Director, said: “Tata Steel has again demonstrated its ability to deliver stellar results despite heightened complexity in the face of COVID as well as geopolitical tensions. Our Indian business showed broad based growth across our chosen segments due to our sustained focus on customer relationships, our distribution network and our portfolio of brands supported by our agile business model. Our European operations delivered robust performance as the transformation programme undertaken helped to leverage the strong business environment. We have pursued several initiatives to de-risk the business particularly across procurement and supply chain and continue to invest in technology and digitisation to drive productivity and improve our resilience.”

Kalinganagar expansion is progressing well and will drive cost savings as well as product mix enrichment. The acquisition of Neelachal Ispat Nigam Limited will be closed in 1QFY23 and we will scale it up rapidly to drive expansion of our high value retail business. I am happy to share that Tata Steel has been recognised as Steel sustainability champion for the fifth year in a row by the WorldSteel,” he added.

The 6 MnTPA Pellet plant at Kalinganagar will be commissioned in 3QFY23 followed by the Cold Roll Mill complex and the 5 MnTPA expansion.

Tata Steel India achieved highest ever annual crude steel production of 19.06 million tons, with a growth of 13% YoY. Highest ever deliveries of 18.27 mn tons despite COVID 2nd wave related disruption early in financial year. Broad based improvement in sales volume was witnessed across segments. Automotive was up 27% YoY, Branded Products and Retail was up 11% YoY while Industrial products & projects was up 11% YoY.

Koushik Chatterjee, Executive Director and Chief Financial Officer, said: “We have closed the financial year with consistent and record operating and financial performance for the year, surpassing the previous best in FY21, with EBIDTA being 2x and Profit after Tax being >5x the previous year. This is despite the significant surge in international coal prices and inflationary impact of various commodities. Our full year consolidated revenues stood at Rs 2,43,959 crores and EBIDTA was Rs 63,830 crores which works out to a margin of 26% and EBITDA per ton of Rs 21,626. Our cash outflow for the capex in the year was Rs 10,522 crores, which is well within our earlier guidance.”

“We continue to focus on deleveraging while advancing on our strategic growth priorities – our focus is on completion of the Kalinganagar expansion. Tata Steel has generated strong free cash flows of Rs 27,185 crores for the year despite higher working capital, taxes, and capex. While the Indian business continued to perform strongly with EBITDA margin of 39% and an EBITDA per ton of Rs 28,863, our European business generated the highest ever EBITDA of £1,199 million (Rs 12,164 crores) which translates to an EBITDA per ton of £133. We have repaid Rs 15,232 crores during the year. As a result of the strong financial performance, our Net Debt to EBIDTA has further improved to 0.8x and our financial metrics continue to be well within investment grade level. As part of the overall policy to reward the shareholders the Board has recommended a record dividend of Rs 51 per share and have also recommended the splitting of the shares to Rs 1 per share face value in a 10:1 split,” he added.

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