Indian steel major Tata Steel reported a standalone net profit of Rs 13,606.62 crore for the financial year ended March 31,2021, mainly on account of higher income.
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.
Production 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.
Total Income
In the January-March 2021 quarter, the company’s total income jumped to ₹50,249.59 crore from ₹37,322.68 crore a year earlier.
Total expenses rose to ₹40,052 crore from ₹35,432.42 crore.
Operating Profit
Operating profit rose 48% sequentially to Rs 14,184 crore, the company said, as realisations rose for the steelmaker’s key entities.
EBITDA
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.
Declared Dividend
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).
Comment from MD and CEO
T V Narendran, “Steel prices in India are cheapest compared to anywhere in the world. So, exporting steel could be a good opportunity and exporters would be most comfortable in the current price scenario.
The current domestic steel prices are simply reflecting the demand in the market.”
Impact on Stock
Shares of Tata Steel rose 6 per cent and hit a new high of Rs 1,128.80 on the BSE in intra-day trade on Thursday .
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