Despite the pandemic stricken challenging business scenario across globe, the country's oldest steel producer, Tata Steel, said on Wednesday that it strengthened its financial position as it reduced net debt by Rs 29,390 crore taking consolidated net debt to Rs 75,389 crore in FY21.
The debt was down by 28 per cent from start of the year, said chairman N Chandrasekaran of Tata Steel. He was addressing shareholders today at the company’s 114th annual general meeting held virtually.
Besides, the board recommended the highest ever dividend in the company’s history of Rs 25 per fully paid up equity share and a dividend of Rs 6.25 for each partly paid up equity share.
During the year, Tata Steel board also made the first and final call on the outstanding partly paidup equity shares and the company received approximately Rs 3,500 crore in the form of first and final call money, said Chandrasekaran.
Pertaining to business, in a bid to simplify the same, Tata Steel has rationalized around 100 legal entities in the last 24 months and advanced the merger process of Tata Steel BSL with Tata Steel, it said.
"The Company has also been investing in the areas of digital analytics and technology to make the business structurally more competitive and agile," said Chandrasekaran.
With regard to Europe business, the process to separate Tata Steel Netherlands and Tata Steel UK is currently underway and the transformation programme is focused on building a profitable, resilient and sustainable business in the future, he said.
Due to the pandemic, the domestic steel industry also suffered production losses due to the national lockdown especially in the first two quarters of the financial year but managed to recover gradually in the next two of FY21 on the back of strong revival in domestic steel demand and rebound in manufacturing and infrastructure development activity in the country. This helped the company highest ever EBITDA of Rs 30,892 crore in FY21, up 71 percent over the same period last year.
The management demonstrated strong focus on generating free cash flows through tight working capital management and disciplined capital allocation during the year to record its highest ever free cash flows of Rs 23,748 crore, it said.
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