Tata Steel Q4 profit up 37% to ₹9,835 crore, announces stock split


Tata Steel Ltd. reported fourth quarter consolidated net income up 37.32% to ₹9,835 crore on continued improvement in performance.

Revenue for the quarter ended in March rose 38% to £69,323 billion.

For the full year, net income increased fivefold to 41,749 crore.

Revenue for FY22 rose 56% to 2,43,959 crore.

For FY22, consolidated free cash flow stood at £27,185 million, the company said in a filing.

Gross debt was ₹75,561 crore with net repayments of 15,232 crore during the year. The company announced that its net debt has decreased to ₹51,049 crore and that it will continue to deleverage going forward despite higher capital allocation.

The board recommended a dividend of ₹51 per fully paid share and ₹12.75 per partially paid share.

The board has also recommended a 10:1 stock split, which would see the company’s £10 shares split into 10 of £1 par value.

TV Narendran, CEO & MD, said in a conference call, “Tata Steel has once again demonstrated its ability to deliver excellent results despite increased complexity in the face of COVID and geopolitical tensions.”

“Our Indian business demonstrated broad-based growth in our selected segments due to our sustained focus on customer relationships, our distribution network and our brand portfolio supported by our agile business model,” he said. “Our European operations delivered a robust performance as the transformation program undertaken helped to capitalize on the strong business environment,” he added. “We have pursued several initiatives to reduce business risk, particularly in procurement and supply chain, and continue to invest in technology and digital to increase productivity and improve our resilience,” he said. He said Kalinganagar’s expansion is progressing well and will drive cost savings and product mix enrichment. The acquisition of Neelachal Ispat Nigam Limited will be completed in Q1 2023.

Koushik Chatterjee, ED & CFO, said: “We ended the fiscal year with consistent and record-breaking operating and financial performance, despite the significant increase in international coal prices and the inflationary impact of various commodities.

“We remain focused on deleveraging as we advance our strategic growth priorities – our focus is on completing the expansion of Kalinganagar,” he said, adding that the company has a capital allocation plan of £12,000 for FY23 and that number can be increased in the middle of the year.

The company said it hit an all-time high annual crude steel production of 19.06 million tons, with a 13% year-over-year growth. Also, despite the disruption related to the second wave of COVID-19 at the beginning of the fiscal year, the company achieved its highest-ever shipments of 18.27 million tons.

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