Tata Steel has reported a consolidated net profit of ₹7,162 crore for the quarter ended March against net loss of ₹1,615 crore logged in the same period last year, on the back of higher sales and better realisation.

Income from operations was up 39 per cent at ₹48,951 crore (₹35,108 crore).

The company has announced dividend of ₹25 per share. A dividend of ₹6.25 will be paid on partly paid-up shares.

In India, the company achieved the highest ever quarterly crude steel production of 4.75 million tonnes (mt), while sales was up 16 per cent at 4.67 mt on the lower base.

The company achieved highest-ever domestic quarterly EBITDA of ₹12,295 crore (₹4,568 crore) which more than doubled compared to last year. Ebitda per tonne was up at ₹26,309 (₹11,339).

The company’s consolidated EBIDTA was at ₹14,290 crore and generated free cash flow of ₹8,800 crore after capex.

Steel sales in Europe grew 3 per cent to 2.47 mt with EBITDA of £125 million.

Covid impact

TV Narendran, Managing Director, Tata Steel, said the first half of last financial year was a challenging with uncertainties and complexities brought in by the Covid pandemic. The second wave of Covid in India is a risk and the company is working to minimise the impact on employees and communities while meeting the requirements of customers, he added.

“Work on the pellet plant and CRM complex at Kalinganagar is progressing well. We have also restarted our 5 mtpa expansion project which should be completed in FY24,” he said.

Debt paring plans

The free cash flow during the financial year was about ₹24,000 crore and the company repaid loans worth ₹28,000 crore.

The net debt of the company was down 28 per cent at ₹75,389 crore.

Tata Steel plans to reduce debt by $1 billion (about ₹7,400 crore) and enhance capital allocation to complete the 5 mtpa expansion in Kalinganagar.

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