Tata Steel Q4 results: Firm reports profit of Rs 6,593 cr, announces dividend of Rs 25

MUMBAI: today reported a net profit of Rs 6,593.5 crore for the quarter ended March as against a net loss of Rs 436.8 crore in the year-ago quarter. Analysts had expected the company to report a net profit of Rs 6,778 crore for the quarter.

The company’s net sales in the quarter surged 49 per cent on-year to Rs 21,202.6 crore aided by strong demand and price hikes.

On a consolidated basis, the company reported a net profit of Rs 6,644.2 crore as against a net loss of Rs 1,481.3 crore. The company’s revenue from operations climbed 39 per cent on-year to Rs 49,977.4 crore.

The company’s board also announced a final dividend of Rs 25 per share for the financial year ended March 2021.

The company reported a near 150 per cent year-on-year growth in operating profit at Rs 9,206 crore, the highest on record. The strong operating profit translated to operating profit per tonne of Rs 27,828, which was sharply higher than analysts’ estimates of Rs 26,678.

Tata Steel said that its standalone operating margin in the quarter came in at 43.4 per cent. The strong operating performance by the company reflected the several price hikes undertaken by it during the quarter.

“Despite a slow start in the first quarter, we managed to deliver strong performance in India with broad-based, market-leading volume growth supported by our agile business model,” said managing director and chief executive officer TV Narendran.

At the consolidated level, too, the company’s operating performance was strong as adjusted operating profit nearly tripled on-year to Rs 13,933 crore helped by price hikes undertaken by the European business.

“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,” said Koushik Chatterjee, executive director and chief financial officer.

The company generated healthy levels of free cash flow in the quarter to the tune of Rs 8,800 crore after factoring capital expenditure. Tata Steel said that it has reduced net debt by Rs 29,390 crore during the financial year to Rs 75,389 crore.

“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 5 mtpa (million tonne per annum) expansion in Kalinganagar,” Chatterjee said.

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