Tata Steel Q4 results 2022: net profit jumps 37% to Rs 9,835 cr; company announces Rs 51 dividend

Tata Steel on Tuesday posted a 37 per cent jump in consolidated net profit at Rs 9,835.12 crore for the quarter ended March 2022, mainly on account of higher income. The steel major had reported a net profit of Rs 7,161.91 crore in the year-ago quarter, it said in its filing to exchanges.

During January-March 2022, Tata Steel's total income jumped to Rs 69,615.70 crore from Rs 50,300.55 crore earlier.

Total expenses rose to Rs 57,635.79 crore from Rs 40,102.97 crore in the January-March period of 2020-21. 

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“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," T V Narendran, Chief Executive Officer & Managing Director at Tata Steel said.

"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,” the exchange filing said quoting the CEO.

Tata Steel reports highest ever consolidated EBITDA at Rs 63,830 crores; Net debt to EBITDA improves to 0.8x

Highlights:
▪ 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.
▪ India1
:
o 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.
o 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.
o EBITDA stood at Rs.52,745 crores, translates to an EBITDA per ton of Rs 28,863
▪ Europe operations:
o Revenues increased by 54% YoY to £8,876 million.
o EBITDA stood at £1,199 million, 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.