Tata Steel FY20 profit plunges 73.5% to Rs 2,719 crore; board declares dividend of Rs 10 per share

Tata Steel has closed financial year 2019-20 with consolidated net profit of Rs 2,719.58 crore, registering a year-on-year decline of 73.55 per cent. The steel major had posted consolidated net profit of Rs 10,283.45 crore in the financial year 2018-19, Tata Steel said in a filing to the Bombay Stock Exchange.

For the full financial year FY20, the consolidated income of the company decreased to Rs 1,41,660.14 crore as compared to Rs 1,59,089.57 crore in FY19.

For January-March quarter of FY20, Tata Steel reported a consolidated net loss of Rs 1,095.68 crore as against a net profit of Rs 2,430.92 crore in the corresponding quarter last year, dented by impairment of Rs 3,141.43 crore on non-current assets.

Consolidated revenue of the company fell 20.40 per cent to Rs 33,769.95 crore in Q4 FY20 from Rs 42,423.86 crore in Q4 FY19.

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Tata Steel's board has recommended a dividend of Rs 10 per ordinary share of Rs 10 each (100 per cent) and Rs 2.504 per partly paid ordinary share of Rs 10 each (paid-up Rs 2.504 per share) to the shareholders of the company for the financial year ended March 31, 2020.

On COVID-19 crisis, Tata Steel said the lockdown has adversely impacted the Group's sales volume, mix and realisations in the various geographies it operates. During the current quarter, such impact was limited only to the later part of March 2020. Tata Steel's steel making facilities across India scaled down operations from the end week of March 2020. The company's overseas operations in Europe, South East Asia and Canada have also been scaled down and are being operated as per the local guidelines, wherever permitted, it said.

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However, with the continuance of lockdowns during the first quarter of the financial year 2021, the Group's operations remained adversely impacted, it added.

Ahead of earnings announcement, shares of Tata Steel ended Monday's trade at Rs 321.25, down 0.82 per cent, against previous closing price of Rs 323.90 on the BSE. During the day's trade, the stock hit an intraday high and low of Rs 325.65 and Rs 312.25, respectively.