Tata Steel FY21 net profit doubles to Rs 13,607 crore; board approves Rs 25 dividend

Indian steel major Tata Steel reported a standalone net profit of Rs 13,606.62 crore for the financial year ended March 31, 2021, more than twice recorded in the previous fiscal. The steelmaking arm of Tata group had posted a net profit of Rs 6,743.80 crore in financial year 2019-20, translating into a 101 per cent growth financial year 2020-21.

Going by its India performance, Tata Steel's production capacity in FY21 stood at 16.92 million tonnes, as opposed to 18.20 million tonnes in FY20. The company delivered 17.31 million tonnes of steel during the fiscal under review, as opposed to 16.97 million tonnes in the year-ago period. Reported EBITDA of Tata Steel in FY21 stood at Rs 28,587 crore, as opposed to Rs 17,650 crore in FY20.

In quarterly terms, Tata Steel reported a standalone net profit of Rs 6,593.54 crore in Q4 FY21 as opposed to a loss of Rs 436.83 crore in Q4 FY20. The company recorded its highest-ever quarterly crude steel production at 4.75 million tonnes during the quarter under review, while steel deliveries grew to 4.67 million tonnes.

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Tata Steel also achieved its highest ever quarterly EBITDA at Rs 12,295 crore in Q4 FY21, up 40 per cent and 2.7 times that seen in the year-ago period.

Tata Steel BSL registered its highest ever quarterly EBITDA at Rs 2,583 crore 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 crore, which translates into an EBITDA per ton of Rs 29,439. TSBSL and TSLP FY21 EBITDA increased to Rs 5,481 crore and Rs 1,154 crore, respectively.

"First half of financial year 2021 was a challenging period with the uncertainties and complexities brought on by the COVID-19 pandemic. Indian economy and domestic steel demand have been improving since then with accommodative policies, government spending and relaxation in mobility restrictions. Despite a slow start in first quarter, we managed to deliver strong performance in India with broad-based, market-leading volume growth supported by our agile business model," said Tata Steel CEO TV Narendran.

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"All our segments, especially automotive, have performed extremely well due to our continuous focus on building strong customer relationships, superior distribution network, brands, and new product developments. We are also making good progress on our various initiatives to de-risk the business while our digital marketing platforms are helping us reach new markets and be future-ready," he further added.

The second wave of COVID-19 in India is a risk and we are working to minimise the impact on our employees and communities while meeting the requirements of our customers, Narendran said.

Tata Steel board of directors recommended a dividend of Rs 25 per fully paid equity share of Rs 10 each (250 per cent) to the shareholders of the company for FY21. Further, in respect of the outstanding partly paid-up ordinary shares of the company on which call money remains unpaid as on the date of book closure for the dividend payment, Tata Steel said the dividend will be paid in proportion to the amount paid up on such shares, i.e., Rs 6.25 per partly paid-up ordinary share of Rs 10 each (paid-up Rs 2.504 per share).

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