Mumbai, May 05, 2021
Tata Steel reports highest ever consolidated quarterly EBITDA;
Net Debt declines by >28% in FY21
Key Highlights:
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Financial Highlights:
Key profit & Loss account items (All figures are in Rs. Crores unless stated otherwise) | India1 | Consolidated | ||||||||
4QFY21 | 3QFY21 | 4QFY20 | FY21 | FY20 | 4QFY21 | 3QFY21 | 4QFY20 | FY21 | FY20 | |
Production (mn tons)2 | 4.75 | 4.60 | 4.73 | 16.92 | 18.20 | 8.20 | 7.74 | 7.90 | 28.54 | 30.63 |
Deliveries (mn tons) | 4.67 | 4.65 | 4.03 | 17.31 | 16.97 | 7.83 | 7.41 | 7.06 | 28.50 | 28.88 |
Turnover | 30,070 | 25,211 | 19,493 | 91,037 | 82,125 | 49,977 | 41,902 | 36,009 | 156,294 | 148,972 |
Reported EBITDA | 12,295 | 8,811 | 4,568 | 28,587 | 17,650 | 14,290 | 9,652 | 4,824 | 30,892 | 18,103 |
Adjusted EBITDA 3 | 12,295 | 8,811 | 4,568 | 28,587 | 17,294 | 13,933 | 8,394 | 5,024 | 28,926 | 17,427 |
Reported EBITDA (Rs. per ton) | 26,309 | 18,931 | 11,339 | 16,515 | 10,400 | 18,253 | 13,021 | 6,838 | 10,838 | 6,267 |
PBT before exceptional items | 9,803 | 6,289 | 1,923 | 18,154 | 7,260 | 10,348 | 5,747 | 1,983 | 14,887 | 3,549 |
Exceptional Charges | 949 | (226) | (2,144) | 2,773 | (1,796) | (991) | (154) | (3,854) | (1,043) | (4,930) |
Reported Profit after Tax | 8,846 | 4,832 | (563) | 16,695 | 5,611 | 7,162 | 4,011 | (1,615) | 8,190 | 1,172 |
1. India includes Tata Steel Standalone, Tata Steel BSL Limited and Tata Steel Long Products Limited on proforma basis without inter-company eliminations; 2. Production numbers for consolidated financials are calculated using crude steel for India, liquid steel for Europe and saleable steel for SEA; 3. Adjusted for fair value changes on account of FX rate movement on investments in T Steel Holdings and revaluation gain/loss on external/ internal company debts/ receivables at TS Global Holdings |
Management Comments:
Mr. T V Narendran, CEO & Managing Director:
'First half of financial year 2021 was a challenging period with the uncertainties and complexities brought on by the COVID-19 pandemic. Indian economy and domestic steel demand has been improving since then with accommodative policies, government spending and relaxation in mobility restrictions. Despite a slow start in first quarter, we managed to deliver strong performance in India with broad-based, market-leading volume growth supported by our agile business model. All our segments, especially automotive, have performed extremely well due to our continuous focus on building strong customer relationships, superior distribution network, brands, and new product developments. We are also making good progress on our various initiatives to de-risk the business while our digital marketing platforms are helping us reach new markets and be future ready. The second wave of COVID-19 in India is a risk and we are working to minimize the impact on our employees and communities while meeting the requirements of our customers.
We continue to work on our strategic priorities to maximize shareholders value. Work on the pellet plant and CRM complex at Kalinganagar is progressing well. We have also restarted our 5mtpa expansion project which should be completed in FY24.'
Mr. Koushik Chatterjee, Executive Director and CFO:
'The fourth quarter performance has been stand out in terms of both earnings and cash flows, and helped the company to report one of the highest underlying performance for the full year in spite of the pandemic related disruptions during the first half of the financial year. The quarterly consolidated EBIDTA of Rs 14,290 crores and free cash flows after capex of about Rs.8,800 crores demonstrates the strength of the India business which had an EBIDTA margin of 41%. With disciplined capital allocation and tight working capital management through the year, Tata Steel's full year free cash flow after capex was around Rs 24,000 crores.
We have reduced our gross debt by over Rs 20,000 crores during the quarter and full year de-leveraging was about Rs 28,000 crores. As a result, the year-end net debt was Rs 75,389 crores which is 28% lower compared to the previous year end. The aggressive prepayment of debt has resulted in a sharp improvement of the capital structure metrics with the Net Debt / Equity under 1x and Net Debt / EBITDA at around the long term target level of 2.44x.
In the current financial year, we will reduce the debt levels by more than a billion dollars and also enhance the capital allocation to our strategic capex program in India to complete the 5mtpa expansion in Kalinganagar. Given the strong, underlying performance of the company, the Board has recommended a dividend of Rs.25 per fully paid share. The company as a responsible citizen is also deeply committed to continue to provide resources and support to help the community in all possible ways during this unprecedented pandemic crisis in the country.'
Disclaimer:
Statements in this press release describing the Company's performance may be 'forward looking statements' within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred or implied. Important factors that could make a difference to the Company's operations include, among others, economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates, changes in or due to the environment, Government regulations, laws, statutes, judicial pronouncements and/or other incidental factors.
About Tata Steel
Tata Steel group is among the top global steel companies with an annual crude steel capacity of 34 million tonnes per annum. It is one of the world's most geographically-diversified steel producers, with operations and commercial presence across the world. The group (excluding SEA operations) recorded a consolidated turnover of US $19.7 billion in the financial year ending March 31, 2020.
A Great Place to Work-Certified organisation, Tata Steel Ltd., together with its subsidiaries, associates and joint ventures, is spread across five continents with an employee base of over 65,000.
Tata Steel was recognised as DJSI steel sector leader in 2018 and has ranked fourth in the steel sector in 2019. Besides being a member of the worldsteel's Climate Action Programme, Tata Steel has won several awards and recognitions including the World Economic Forum's Global Lighthouse recognition for its Kalinganagar Plant - a first in India, and Prime Minister's Trophy for the best performing integrated steel plant for 2016-17. The Company, ranked as India's most valuable Metals & Mining brand by Brand Finance, received the 'Honourable Mention' at the National CSR Awards 2019, Steel Sustainability Champion 2019 by worldsteel, CII Greenco Star Performer Award 2019, 'Most Ethical Company' award 2020 from Ethisphere Institute, and Best Risk Management Framework & Systems Award (2020) by CNBC TV-18, among several others.
To know more, visit www.tatasteel.com and www.wealsomaketomorrow.com
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Tata Steel Ltd. published this content on 05 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 May 2021 16:06:04 UTC.