Tata Steel Q4 profit rises 37% to ₹9,835 crore, announces stock split

Tata Steel Ltd. reported fourth quarter consolidated net profit rose 37.32% to ₹9,835 crore owing to continuous improvement in performance.

Revenue for the quarter ended March, grew 38% to ₹69,323 crore.

For the full year, net profit rose fivefold to ₹41,749 crore.

Revenue for FY22 grew 56% to ₹2,43,959 crore.

For FY22 the consolidated free cash flow stood at  ₹27,185 crores, the company said in a filing.

Gross debt stood at ₹75,561 crore with net repayments of ₹15,232 crore during the year. The company said its net debt declined to ₹51,049 crore and it would continue to cut debt going forward despite higher capital allocation.

The board of directors recommended a dividend of ₹51 per fully paid equity share and ₹12.75 per partly paid-up equity shares. 

The board has also recommended a 10:1 stock split where by the company’s ₹10 equity shares will be split into 10 with face value of ₹1 each.

T.V. Narendran, CEO & MD in a conference call said, “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,” he said.

“Our European operations delivered robust performance as the transformation programme undertaken helped to leverage the strong business environment,” he added.

“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.

He said Kalinganagar expansion was 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.

Koushik Chatterjee, ED & CFO said, “We have closed the financial year with consistent and record operating and financial performance despite the significant surge in international coal prices and inflationary impact of various commodities. 

“We continue to focus on deleveraging while advancing on our strategic growth priorities – our focus is on completion of the Kalinganagar expansion,” he said adding the company has capital allocation plan of ₹12,000 for FY23 and this figure may be scaled up in the middle of the year.

The company said it achieved highest ever annual crude steel production of 19.06 million tons, with a growth of 13% YoY. Also it achieved highest-ever deliveries of 18.27 mn tons despite COVID-19 second wave-related disruption early in the financial year.