Tata Steel announces 10:1 stock split; dividend of Rs 51
Tata Steel, which is one of the top global steel majors with an annual crude steel capacity of 34 million tonnes per annum, reported a little over 37 per cent jump in its net profit for the quarter ended March 31, 2022.
Further, the board of the company announced a dividend of Rs 51 per share while also recommending a 10:1 stock split.
For the fourth quarter ended March 31, 2022 (Q4FY22), the steel major registered a consolidated net profit of Rs 9,835 crore, which is 37.32 per cent higher than the Rs 7,162 crore profit witnessed in the corresponding quarter of the previous fiscal.
For the financial year 2021-22, the company clocked a net profit of Rs 41,749 crore, a more than five-fold jump from the previous fiscal’s Rs 8,190 crore.
A release from the company stated that the steel major reported its highest-ever consolidated EBITDA of Rs 63,830 crore with an EBITDA per ton of Rs 21,626. Further, consolidated free cash flow was Rs 27,185 crore despite an increase in working capital of Rs 9,618 crore, CAPEX of Rs 10,522 crore and taxes of Rs 11,902 crore, it added.
Gross debt stood at Rs 75,561 crore with net repayments of Rs 15,232 crore and the net debt declined to Rs 51,049 crore.
Meanwhile, the 6 MTPA Pellet plant at Kalinganagar will be commissioned in the third quarter of FY23 followed by the Cold Roll Mill complex and the 5 MTPA expansion, stated the release.
In terms of the India business, the company achieved its highest-ever annual crude steel production of 19.06 million tons, with a growth of 13 per cent year-on-year. The deliveries for FY22 were also at a record 18.27 million tons despite COVID related disruption early in the financial year.
The revenues of the Europe operation increased by 54 per cent annually to £8,876 million, as per the release.
The board of directors of the company recommended a dividend of Rs 51 per fully paid equity share and Rs 12.75 per partly paid equity share apart from a 10:1 stock split.
“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,” the release quoted T V Narendran, MD & CEO, Tata Steel.
