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India's largest steelmaker Tata Steel Limited on Tuesday reported a consolidated net profit of Rs 9,835.12 crore for the fourth quarter of 2021-22 as against Rs 7,162 crore recorded in the corresponding period of the previous year, posting year-on-year growth of 37.3 per cent.
For the full year 2021-22 the company's net profit rose to Rs 41,749 crore. "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, Tata Steel, said in a statement. "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," he said. Elaborating on the expansion plans, Narendran said, "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." Commenting on the financial numbers, Koushik Chatterjee, Executive Director and Chief Financial Officer, Tata Steel, said, "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." Tata Steel's full year consolidated revenues stood at Rs 2,43,959 crores and EBIDTA at Rs 63,830 crore which works out to a margin of 26 per cent and EBITDA per ton of Rs 21,626. "Our cash outflow for the capex in the year was Rs 10,522 crore, 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," Chatterjee said. 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, Chatterjee added. (ANI)
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