05 May 2021
Corporate News

Tata Steel reports highest ever consolidated quarterly EBITDA; Net Debt declines by >28% in FY21

Tata Steel background

Highlights:

  • Consolidated EBITDA of Rs.14,290 crores and consolidated Profit after tax of Rs.7,162 crores in 4QFY21.
  • Consolidated EBITDA of Rs.30,892 crores and consolidated Profit after tax of Rs.8,190 crores in FY21.
  • Consolidated Free Cash Flows of Rs.8,826 crores in 4QFY21 and Rs.23,748 crores in FY21.
  • Net debt decreased by Rs.29,390 crores to Rs.75,389 crores. Net debt to EBITDA improved to 2.44x and Net debt to equity improved to 0.98x.

 

  • The Pellet plant and Cold Roll Mill complex at Kalinganagar is under construction. The 5mtpa expansion project has been restarted
  • India[1] operations –
    • Achieved highest ever quarterly crude steel production of 4.75 mn tons; registered a 3%QoQ growth in 4QFY21. FY21 production stood at 16.92 mn tons.
    • Steel deliveries grew 16%YoY to 4.67 mn tons in 4QFY21. FY21 steel deliveries increased to 17.31 mn tons despite the pandemic led disruption in 1QFY21.
    • Achieved highest ever quarterly EBITDA of Rs.12,295 crores with 40%QoQ and 2.7x YoY growth in 4QFY21. This translates into an EBITDA per ton of Rs.26,309 and an EBITDA margin of 40.9%. FY21 EBITDA was Rs.28,587 crores.
    • Tata Steel standalone also registered highest ever quarterly EBITDA at Rs.9,206 crores with 37%QoQ and 2.5x YoY growth in 4QFY21. This translates into an EBITDA per ton of Rs.27,828 and an EBITDA margin of 43.4%. FY21 EBITDA was Rs.21,952 crores.
    • Tata Steel BSL registered its highest ever quarterly EBITDA of Rs.2,583 crores which translates into an EBITDA per ton of Rs.21,648.  Tata Steel Long Products also registered its highest ever quarterly EBITDA of Rs.506 crores which translates into an EBITDA per ton of Rs.29,439 respectively. TSBSL and TSLP FY21 EBITDA increased to Rs.5,481 crores and Rs.1,154 crores respectively.
    • Shareholders have approved the merger of Tata Steel BSL with Tata Steel. A joint “Scheme Petition” has been filed with the NCLT to sanction the scheme with effect from 1st April, 2019. The merger of Tata Metaliks and Indian Steel and Wire Products with Tata Steel Long Products in also underway.
  • Steel deliveries at Tata Steel Europe grew 17%QoQ and 3%YoY to 2.47 mn tons in 4QFY21. EBITDA improved sharply to £125 million in 4QFY21.
  • Tata Steel is committed to sustainability of operations and is taking initiatives to adopt best available technologies for decarbonization and water neutrality. Tata Steel and Tata Steel Europe have been recognized as Steel Sustainability Champion for 4th consecutive year by the Worldsteel Association.
  • The Board of Directors recommended a dividend of Rs.25 per fully paid equity share and Rs.6.25 per partly paid equity shares 

[1]India includes Tata Steel Standalone, Tata Steel BSL Ltd. and Tata Steel Long Products Ltd. on proforma basis without inter-company eliminations

Financial Highlights:

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

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

8.02

7.74

7.90

28.54

30.63

Deliveries (mn tons)

4.67

4.65

4.03