Tata Steel Q4 net profit at ₹6,593 cr, board approves dividend of ₹25/share

A company logo is seen outside the Tata steelworks near Rotherham in Britain, in this March 30, 2016 file photo. REUTERS/Phil Noble (REUTERS)Premium
A company logo is seen outside the Tata steelworks near Rotherham in Britain, in this March 30, 2016 file photo. REUTERS/Phil Noble (REUTERS)
 2 min read . Updated: 05 May 2021, 07:50 PM IST Edited By Aparna Banerjea

Tata Steel on Tuesday reported a net profit of ₹6,593.5 crore for the quarter ended 31 March, 2021. The company had posted a net loss of ₹436.8 crore in the year-ago period.

The company’s board also announced a final dividend of ₹25 per share for the financial year ended March 2021.

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"The Board of Directors has recommended a dividend of 25/- per fully paid-up Ordinary Share of 10/- each and 6.25p per partly paid-up Ordinary Share of 10/- each (paid-up 2.504 per share) for the financial year 2020-21. The dividend has been calculated in proportion to the amount paid-up on each," the company said in a regulatory filing.

The company also stated that steel deliveries grew 16% YoY to 4.67 mn tons in 4QFY21. FY21 steel deliveries increased to 17.31 mn tons despite the pandemic led disruption in QFY21.

It added that the company has achieved highest ever quarterly EBITDA of Rs.12,295 crores with 40%QoQ and 2.7x YoY growth in 4QFY21. This translates into an EBITDA per ton of Rs.26,309 and an EBITDA margin of 40.9%. FY21 EBITDA was Rs.28,587 crore.

Tata Steel standalone also registered highest ever quarterly EBITDA at Rs.9,206 crores with 37%QoQ and 2.5x YoY growth in 4QFY21.

The company's March-quarter consolidated total revenue from operations stood at ₹49,977 crore as against ₹36,009 crore a year ago.

The company’s net sales in the quarter surged 49% to ₹21,202.6 crore, year-on-year period, over strong demand and price hikes.

Total expenses rose to ₹40,052 crore from ₹35,432.42 crore in the January-March period of 2019-20.

“Despite a slow start in the first quarter, we managed to deliver strong performance in India with broad-based, market-leading volume growth supported by our agile business model," said managing director and chief executive officer TV Narendran.

Koushik Chatterjee, executive director and chief financial officer sai, “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."

Shares of Tata rose 0.6% in BSE before the results were announced, extending this year’s rally to 66%.

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