Tata Steel Ltd Q4FY21 consolidated PAT soars to Rs. 6644.15 crores

TATA STEEL LTD. has reported financial results for the period ended March 31, 2021.

Financial Results (Q4 FY20-21) - QoQ Comparison

The company has reported total income of Rs.50249.58 crores during the period ended March 31, 2021 as compared to Rs.42119.98 crores during the period ended December 31, 2020.

The company has posted net profit / (loss) of Rs.6644.15 crores for the period ended March 31, 2021 as against net profit / (loss) of Rs.3697.22 crores for the period ended December 31, 2020.

The company has reported EPS of Rs.57.19 for the period ended March 31, 2021 as compared to Rs.31.86 for the period ended December 31, 2020.

Financials	Q4 FY20-21	Q3 FY20-21	% Change
Total Income	₹ 50249.58 crs	₹ 42119.98 crs	19.3%
Net Profit	₹ 6644.15 crs	₹ 3697.22 crs	79.71%
EPS	₹ 57.19	₹ 31.86	79.5%

Financial Results (Q4 FY20-21) - YoY Comparison

The company has reported total income of Rs.50249.58 crores during the period ended March 31, 2021 as compared to Rs.37322.68 crores during the period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.6644.15 crores for the period ended March 31, 2021 as against net profit / (loss) of Rs.(1481.34) crores for the period ended March 31, 2020.

The company has reported EPS of Rs.57.19 for the period ended March 31, 2021 as compared to Rs.(13.37) for the period ended March 31, 2020.

Financials	Q4 FY20-21	Q4 FY19-20	% Change
Total Income	₹ 50249.58 crs	₹ 37322.68 crs	34.64%
Net Profit	₹ 6644.15 crs	₹ (1481.34) crs	-548.52%
EPS	₹ 57.19	₹ (13.37)	-527.75%

Financial Results (Year ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.157189.78 crores during the 12 months period ended March 31, 2021 as compared to Rs.150793.70 crores during the 12 months period ended March 31, 2020.

The company has posted net profit / (loss) of Rs.7490.22 crores for the 12 months period ended March 31, 2021 as against net profit / (loss) of Rs.1556.54 crores for the 12 months period ended March 31, 2020.

The company has reported EPS of Rs.63.78 for the 12 months period ended March 31, 2021 as compared to Rs.11.86 for the 12 months period ended March 31, 2020.

Financials	Year Ended FY20-21	Year Ended FY19-20	% Change
Total Income	₹ 157189.78 crs	₹ 150793.70 crs	4.24%
Net Profit	₹ 7490.22 crs	₹ 1556.54 crs	381.21%
EPS	₹ 63.78	₹11.86	437.77%

Mr. T V Narendran, CEO & Managing Director: "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 has 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. 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. The second wave of COVID-19 in India is a risk and we are working to minimize the impact on our employees and communities while meeting the requirements of our customers.

We continue to work on our strategic priorities to maximize shareholders value. Work on the pellet plant and CRM complex at Kalinganagar is progressing well. We have also restarted our 5mtpa expansion project which should be completed in FY24."

Mr. Koushik Chatterjee, Executive Director and CFO: "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. The quarterly consolidated EBIDTA of Rs 14,290 crores and free cash flows after capex of about Rs.8,800 crores demonstrates the strength of the India business which had an EBIDTA margin of 41%. With disciplined capital allocation and tight working capital management through the year, Tata Steel's full year free cash flow after capex was around Rs 24,000 crores.

We have reduced our gross debt by over Rs 20,000 crores during the quarter and full year de-leveraging was about Rs 28,000 crores. As a result, the year-end net debt was Rs 75,389 crores which is 28% lower compared to the previous year end. The aggressive prepayment of debt has resulted in a sharp improvement of the capital structure metrics with the Net Debt / Equity under 1x and Net Debt / EBITDA at around the long term target level of 2.44x.

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 5mtpa expansion in Kalinganagar. Given the strong, underlying performance of the company, the Board has recommended a dividend of Rs.25 per fully paid share. The company as a responsible citizen is also deeply committed to continue to provide resources and support to help the community in all possible ways during this unprecedented pandemic crisis in the country."

Shares of TATA STEEL LTD. was last trading in BSE at Rs.1068.95 as compared to the previous close of Rs. 1064.05. The total number of shares traded during the day was 923316 in over 21146 trades.

The stock hit an intraday high of Rs. 1088.85 and intraday low of 1047. The net turnover during the day was Rs. 984236109.

Source : Equity Bulls

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