Tata Steel Q4 Results Update

On 3rd May, Tata Steel announced its quarterly results for the last quarter of FY2022.

Key Highlights:

- Tata Steel recorded the highest ever consolidated EBITDA of Rs.63,830 crores with an EBITDA per ton of Rs 21,626.

- Profit after tax stood at Rs 41,749 crores

- Consolidated Free Cash Flow was Rs. 27,185 crores despite an increase in working capital of Rs. 9,618 crores, CAPEX of Rs. 10,522 crores and taxes of Rs. 11,902 crores

- Gross debt stood at Rs.75,561 crores with net repayments of Rs.15,232 crores. 

- Net debt declined to Rs.51,049 crores. 

- Net debt to EBITDA improved to 0.80x

- Net debt to equity improved to 0.52x

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

INDIA:

- In India, Tata Steel achieved the 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 the financial year. 

- Broad-based improvement in sales volume was witnessed across segments. Automotive was up 27% YoY, Branded Products and Retail were up 11% YoY while Industrial products & projects were up by 11% YoY. 

- EBITDA stood at Rs.52,745 crores, which translates to an EBITDA per ton of Rs 28,863

EUROPE:

- In Europe, the revenues increased by 54% YoY to £8,876 million.

- EBITDA stood at £1,199 million, which translates to an EBITDA per ton of £133

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.

Mr. 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 program 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 digitization 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 the expansion of our high-value retail business. I am happy to share that Tata Steel has been recognized as Steel sustainability champion for the fifth year in a row by the WorldSteel.”

On Wednesday the share price of Tata Steel went down by 1.21 percent.