03 May 2022
Corporate News
Tata Steel reports highest ever consolidated EBITDA at Rs 63,830 crores; Net debt to EBITDA improves to 0.8x
Tata Steel background

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

Financial Highlights:

Key profit & Loss account items (All figures in Rs. Crores unless specified)

India1,2,3

Consolidated2,3,4

4QFY22

3QFY22

4QFY21

FY22

FY21

4QFY22

3QFY22

4QFY21

FY22

FY21

Production (mn tons)5

4.90

4.81

4.75

19.06

16.92

7.62

7.76

8.02

31.03

28.54

Deliveries (mn tons)

5.12

4.42

4.67

18.27

17.30

8.01

7.01

7.83

29.52

28.50

Turnover

38,480

33,641

28,902

135,823

88,883

69,324

60,783

50,028

243,959

156,477

Reported EBITDA

12,539

12,422

12,228

52,745

28,494

15,174

15,853

14,290

63,830

30,892

Reported EBITDA (Rs. per ton)

24,469

28,116

26,179

28,863

16,467

18,937

22,610

18,253

21,626

10,838

Adjusted EBITDA6

11,942

12,434

12,228

51,848

28,494

15,891

15,890

13,933

65,483

28,926

Adjusted EBITDA (Rs. per ton)

23,305

28,144

26,179

28,372

16,467

19,832

22,663

17,797

22,186

10,148

PBT before exceptional items

10,800

10,600

9,972

45,211

18,483

12,139

12,359

10,348

50,361

14,887

Exceptional Items (gain)/loss

76

193

(949)

263

(741)

 274

 193

991

134

1,043

Reported Profit after Tax

7,899

7,787

8,470

33,641

17,650

9,835

9,598

7,162

41,749

8,190

1. India includes Tata Steel Standalone and Tata Steel Long Products on proforma basis without inter-company eliminations; 2. Tata Steel Standalone numbers have been restated from April 1, 2019 to reflect Tata Steel BSL’s merger into Tata Steel. 3. Figures for previous periods have been regrouped and reclassified to conform to classification of current period, where necessary. 4. 4QFY21 figures have been restated consequent to the re-classification of South East Asia operations from "Held for Sale" to "Continuing Operations"; 5. Production numbers for consolidated financials are calculated using crude steel for India, liquid steel for Europe and saleable steel for SEA; 6. Adjusted for fair value changes on account of FX rate movement on loan given to T Steel Holdings and revaluation gain/loss on external/ internal company debts/ receivables at TS Global Holdings

Management Comments:

Mr. T V Narendran, Chief Executive Officer & Managing Director: 

“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 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.”

Mr. Koushik Chatterjee, Executive Director and Chief Financial Officer:

“We have closed the financial year with consistent and record operating and financial performance for the year, surpassing the previous best in FY21, with EBIDTA being 2x and Profit after Tax being >5x the previous year. This is despite the significant surge in international coal prices and inflationary impact of various commodities. Our full year consolidated revenues stood at Rs 2,43,959 crores and EBIDTA was Rs 63,830 crores which works out to a margin of 26% and EBITDA per ton of Rs 21,626.  Our cash outflow for the capex in the year was Rs 10,522 crores, which is well within our earlier guidance. We continue to focus on deleveraging while advancing on our strategic growth priorities – our focus is on completion of the Kalinganagar expansion. Tata Steel has generated strong free cash flows of Rs 27,185 crores for the year despite higher working capital, taxes, and capex. While the Indian business continued to perform strongly with EBITDA margin of 39% and an EBITDA per ton of Rs 28,863, our European business generated the highest ever EBITDA of £1,199 million (Rs 12,164 crores) which translates to an EBITDA per ton of £133. We have repaid Rs 15,232 crores during the year. As a result of the strong financial performance, our Net Debt to EBIDTA has further improved to 0.8x and our financial metrics continue to be well within investment grade level. As part of the overall policy to reward the shareholders the Board has recommended a record dividend of Rs 51 per share and have also recommended the splitting of the shares to Rs 1 per share face value in a 10:1 split” 

-ends-

About Tata Steel

Tata Steel 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 recorded a consolidated turnover of US $32,836 million in the financial year ending March 31, 2022. A Great Place to Work-CertifiedTM 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 has been a part of the DJSI Emerging Markets Index since 2012 and has been consistently ranked amongst top 10 steel companies in the DJSI Corporate Sustainability Assessment since 2016. Besides being a member of ResponsibleSteelTM, worldsteel’s Climate Action Programme and World Economic Forum’s Global Parity Alliance, Tata Steel has won several awards and recognitions including the World Economic Forum’s Global Lighthouse recognition for its Jamshedpur, Kalinganagar and IJmuiden Plants, 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, featured amongst CII Top 25 innovative Indian Companies in 2021 and top 10 sustainable organisations of India Hurun Research Institute in the 2021 Capri Global Capital Hurun India Impact 50, received Steel Sustainability Champion recognition from worldsteel for five years in a row, ‘Most Ethical Company’ award 2021 from Ethisphere Institute, RIMS India ERM Award of Distinction 2021, Masters of Risk - Metals & Mining Sector recognition at The India Risk Management Awards for the sixth consecutive year, and Award for Excellence in Financial Reporting FY20 from ICAI, among several others.

To know more, visit www.tatasteel.com and www.wealsomaketomorrow.com.

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.

For media enquiries contact:

Sarvesh Kumar

Tel: +91 98301 71705

E-mail: sarvesh.kumar@tatasteel.com

 

 

 

 

 

Categories